Mr. Kulachet Dharachandra, Country Director of SCG in Vietnam and General Director of Long Son Petrochemicals, tells VnEconomy / Vietnam Economic Times’ Phuong Nhi about SCG’s green development orientation, reaffirming its commitment to accompany Vietnam and make practical contributions to the country’s green growth objectives.

Vietnam is currently promoting the development
of a green and sustainable economy, with a strong commitment to achieving net-zero
emissions by 2050. How would you assess these goals, especially in the context of
the accelerating global green transition?

Vietnam’s commitment to achieving net-zero
emissions by 2050 is both ambitious and inspiring. It shows strong alignment with
the global momentum, where sustainability and economic growth must go hand-in-hand,
and signals that Vietnam is ready to compete in the new low-carbon economy.

For SCG, this is not a new response to a new
target. We began our net-zero journey long before it became a global headline, grounded
in the belief that environmental responsibility is fundamental to long-term business
resilience. Under our Inclusive Green Growth vision, sustainability is integrated
into every aspect of our operations, such as lower-carbon production processes and
innovative products, energy efficiency, renewable energy use, and social inclusion.

The economic logic is clear: a green transition
is not about sacrificing growth. By improving energy efficiency, reducing dependence
on volatile fossil fuel inputs, and meeting international carbon standards, businesses
can lower risks and secure market access. In many export markets, low-carbon products
are no longer a premium choice, they are the baseline requirement for participation.

Vietnam’s clear policy direction gives companies
like SCG the confidence to keep investing and expanding here. When sustainability
is embedded in national strategy and sectoral action, it creates stronger productivity,
better export competitiveness, and long-term economic stability. It’s a vision we
share and one we are committed to advancing together with Vietnam.

As Vietnam is orienting itself towards attracting
green and sustainable FDI, which investment areas does SCG plan to prioritize to
align with the country’s national strategy?

With a presence of more than 30 years in Vietnam,
SCG has been producing essential materials that meet domestic market needs and support
national development. Vietnam’s stable and supportive policies give investors like
us the confidence to commit with a long-term perspective – focusing on projects
that combine quality, sustainability, and relevance to local communities.

Our guiding principle is to build green manufacturing
that strengthens the industrial value chain and grows side-by-side with Vietnam’s
economy.

SCG’s priority investment areas span cement
and building materials, packaging, and petrochemicals, with a strong focus on sustainability
and efficiency. In cement and building materials, we are advancing low-carbon cement
and cleaner production models by reducing clinker ratios, increasing the use of
alternative fuels, and integrating circular economy solutions such as waste heat
recovery.

In packaging, we are developing circular-economy-based solutions ranging
from recyclable and recycled packaging to certified fiber sourcing and sustainable
designs that help manufacturers meet rising ESG [environmental, social, and
governance] standards in both domestic and export markets.

And in petrochemicals, flagship projects such
as Long Son Petrochemicals are designed to enhance national self-sufficiency, apply
advanced technologies to improve efficiency, and strengthen overall environmental
performance.

Through these investments, SCG helps enhance
Vietnam’s industrial competitiveness in global value chains. Guided by our ESG 4
Plus framework and fully aligned with Vietnam’s national priorities, our objective
is clear – to drive sustainable growth, strengthen resilience, and continue building
long-term value for the country and its people.

SCG is expected to begin exporting its low-carbon
cement products to the US market from 2026. How will this plan contribute to Vietnam’s
green trade strategy, particularly as many countries are tightening their emissions
standards?

Using SCG’s proprietary technology, we began
producing low-carbon cement in Vietnam in 2024 and will begin exporting it to the
US market from 2026. This reflects a global shift where carbon performance is no
longer a differentiator, it is a fundamental market entry requirement.

Our low-carbon cement meets stringent international
standards such as ASTM and BS EN, enabling access to markets with increasingly tight
environmental regulations. This demonstrates that Vietnamese manufacturing can compete
not only on cost but also on quality, compliance, and sustainability.

This approach supports Vietnam’s goal of moving
up the value chain – transitioning from cost-based competitiveness to higher-value,
standards-aligned production. In this way, green manufacturing and green trade reinforce
each other, bolstering Vietnam’s role in global supply chains.

From a trade perspective, it positions Vietnam
to expand higher-value, greener exports at a time when major markets are tightening
emissions standards and applying carbon-related trade measures. Meeting these standards
helps reduce long-term trade risks, protect market access, and build resilience.

Ultimately, our plan ensures that green investment
creates value not only for SCG but across Vietnam’s broader industrial ecosystem
– strengthening the country’s competitiveness in the global low-carbon economy.

SCG’s Long Son Petrochemical Complex in Vietnam
officially resumed operations at the end of August. What is the significance of
this project in SCG’s long-term development strategy in Vietnam, as well as in relation
to the Group’s green and sustainable development goals?

The resumption of operations at Long Son Petrochemicals
marks the reaffirmation of its role as a core, long-term pillar in SCG’s growth
strategy in Vietnam. For us, Vietnam is not only a production base, it is a strategic
market where we intend to grow responsibly and sustainably for decades.

From a business perspective, the Complex supplies
essential petrochemical products that underpin Vietnam’s downstream manufacturing
sectors – reducing import needs. Just as important, it allows SCG to produce these
materials locally and in compliance with high efficiency and environmental standards,
supporting both industrial competitiveness and sustainability.

The Complex embodies our belief that scale
and social responsibility must go hand-in-hand. We have invested over $100 million
to integrate advanced green manufacturing technologies. Looking ahead, our project
to upgrade feedstock and utilize ethane will further reduce carbon emissions from
2027.

In partnership with strategic customers and
suppliers, we are also developing a closed-loop circular economy model – collecting
plastic waste, reprocessing it into recycled pallets with jointly developed formulas,
delivering them to end users, and then collecting and reusing them multiple times.

Overall, the restart of the Long Son
Petrochemicals Complex reflects SCG’s commitment to being a long-term partner in
Vietnam’s economic journey, aligning industrial growth with environmental responsibility
and supporting the country’s transition towards a green and sustainable future.

Do you have any recommendations for Vietnam
to further improve its investment environment and better support FDI enterprises
in promoting green development and digitalization in order to sustain long-term
growth momentum?

Vietnam has made impressive progress in building
an attractive investment environment, and the next phase should focus on the depth
of quality, innovation, and sustainability. Green and digital investments are inherently
long term, requiring significant upfront capital. What investors value most is predictability,
alongside clear and consistent policies that guide investment decision with confidence.

First, establishing transparent frameworks
and roadmaps for carbon reduction, energy transition, and industrial standards such
as credible green labels will enable businesses to plan with certainty. Green projects
often have longer payback periods, so policy stability and clarity matter even more
than short-term incentives.

Second, fostering innovation through mechanisms
like faster approval processes, targeted tax incentives for green and digital projects,
pilot programs, and RD support can accelerate decision-making and efficiency.
These measures encourage the introduction of advanced technologies and solutions
into Vietnam’s economy.

Finally, continued momentum in public-private
collaboration within the green and digital ecosystem will help both domestic and
FDI enterprises integrate more deeply and establish competitive, sustainable models
in the global marketplace.

SCG’s strategy is fully aligned with Vietnam’s
national agenda – positioning ourselves as a smart, green, and responsible manufacturing
role model, ready to grow with the country in this new chapter of sustainable development.

-Phuong Nhi