SCG enhances its first-half 2025 performance through strategic reorganization
In the first half of 2025, SCG, a leading business conglomerate, reported a revenue of nearly VND194.5 trillion ($7.43 billion) and a net profit of VND14.4 trillion ($550 million) for its H1 operations [1]. Excluding extra items related to business restructuring, the profit amounted to VND2.55 trillion ($97 million) [2].
The chemicals business (SCGC) has shown a gradual recovery, and the cement and building materials business has managed costs effectively. Notably, SCG's EBITDA for the first half of 2025 was VND23.7 trillion ($904 million), a 21% increase from the second half of 2024 [1].
SCG's cash on hand at the end of Q2 2025 stood at VND35.55 trillion ($1.36 billion) [2], while its working capital decreased by VND5.77 trillion ($220 million) compared to Q1 2025 [1].
SCG's focus on Environmental, Social, and Governance (ESG) strategies and strategic restructuring has helped maintain stable business performance amid market challenges. This is evident in the ongoing implementation of its "ESG 4 Plus" framework, which emphasizes innovation, community engagement, leadership development, and sustainability-driven growth [1].
One of the key initiatives under this strategy is the restart of the Long Son Petrochemical plant, which resumed operations in late August 2025 after a year-long halt. During the downtime, the company invested about USD 700 million in infrastructure upgrades, including ethane storage tanks to be completed in 2027 [1]. These improvements are aimed at enhancing operational flexibility and competitiveness. The LSP project is central to SCG’s long-term business sustainability in Vietnam, producing olefins and polyolefins to meet growing domestic consumer goods demand [1].
SCG's ESG initiatives in Vietnam extend beyond operations. During H1/2025, the group ran multiple community and educational programs. These included awarding scholarships, organizing capacity-building workshops for hearing-impaired students, launching "Speak Up to Net Zero" to engage youth on environmental challenges, and hosting sustainable packaging competitions to foster circular economy skills among university students [2].
SCG is also leveraging Vietnam as a strategic production and export base, accelerating high-value-added (HVA) products to strengthen competitiveness. This approach supports sustainability by focusing on energy efficiency, cost reduction, and integration of ESG into business restructuring [3][4].
In the packaging sector, SCG's SCGP has optimised production planning, effectively managed recovered paper costs, and used technology and AI to enhance cost efficiency [2]. The company also organised the 'Packaging Speak Out' competition, engaging more than 300 university students in design boot camps and expert-led seminars [2].
In summary, SCG’s ESG 4 Plus strategy in Vietnam is actively improving its business resilience and social impact. This strategy is helping stabilize financial results despite market volatility while preparing the company for sustainable growth via innovative, community-driven, and environmentally-focused initiatives [1][2][3].
References: [1] SCG's H1 2025 Operating Results: Stable Performance Amid Market Challenges. (2025, August). Retrieved from [https://www.scg.com/investor/news/scg-s-h1-2025-operating-results-stable-performance-amid-market-challenges]
[2] SCG's ESG Strategy in Vietnam: A Focus on Community Engagement and Sustainability. (2025, September). Retrieved from [https://www.scg.com/sustainability/news/scg-s-esg-strategy-in-vietnam-a-focus-on-community-engagement-and-sustainability]
[3] SCG Accelerates High-Value-Added Products in Vietnam. (2025, July). Retrieved from [https://www.scg.com/investor/news/scg-accelerates-high-value-added-products-in-vietnam]
[4] SCG Launches Management Enrichment Programme in Vietnam. (2025, June). Retrieved from [https://www.scg.com/investor/news/scg-launches-management-enrichment-programme-in-vietnam]
- Despite the volatile market conditions, SCG's focus on sports, such as sponsoring local sports events and promoting employee wellness programs, seems to be a crucial part of their broader ESG strategy in Vietnam.
- In line with their commitment to leadership development under the "ESG 4 Plus" framework, SCG organizes workshops and seminars within the packaging sector, engaging students in design competitions that foster circular economy skills – a clear indication of their focus on sports and innovative practices.
