June 8, 2025…SCG Decor Public Company Limited (SCGD) has reaffirmed the strength of its growth strategy and business resilience despite potential impacts from US import tariffs reaching up to 36% on Thailand.
However, this situation will not significantly affect the company, as revenue from US exports represents less than 1% of total sales. The company is aggressively expanding exports from Vietnam using Vietnam as its production base, which serves as one of its key strategies to handle economic volatility and navigate uncertain and challenging market conditions.
Numpol Malichai, Chief Executive Officer and President of SCG Decor Public Company Limited (SCGD), stated:
“We recognize Vietnam’s long-term growth potential and competitive capabilities. Vietnam’s economy continues to grow with a working-age population structure conducive to employment and globally competitive production costs. Vietnam is also the first ASEAN country to have a customs tax agreement for Vietnamese goods exported to the US at a 20% rate.”
The company operates a significant production base in Vietnam under PRIME GROUP, which is Vietnam’s leading tile market player with approximately 20% market share and plans to expand into the country’s southern region, leveraging advantages from strong distributor networks and highly popular brands.
PRIME GROUP has achieved over 34% growth in Glazed Porcelain sales compared to the same period last year, while Thailand’s market remains sluggish. The company benefits from Vietnam’s energy cost advantages and lower labor costs compared to many ASEAN countries. Additionally, the company continues investing in alternative energy sources such as solar systems and biomass fuel, which not only reduces costs but also supports the company’s environmental objectives.
The company currently operates Glazed Porcelain production at full capacity and has begun expanding additional production capacity at the Pho Yen factory. Phase 1, exceeding 2.5 million square meters, has been completed, with Phase 2 of another 2.5 million square meters expected to be completed within the third quarter of this year. Plans include developing HVA tiles and large-format tiles to support export market expansion to countries such as Australia, South Korea, Taiwan, and Europe, effectively leveraging cost and tax advantages for market expansion.
Furthermore, the company is prepared to advance product development in collaboration with leading suppliers to ensure SCGD products meet global quality standards. This includes developing premium products with advanced technology in partnership with European partners to effectively compete with products from global players. The company is also seeking opportunities in mergers and partnerships, particularly strategic cooperation in Vietnam, to expand ceramic and sanitary ware businesses more comprehensively in the future.
The company firmly believes that Vietnam will serve as a primary production and export base, representing one of the key strategies for maintaining global competitiveness and creating continuous business growth.
