Mr. Numpol Malichai, Chief Executive Officer of SCG Decor Public Company Limited (SET: SCGD), confirmed that the company’s growth and operation remains strong and flexible despite Thailand possibly facing a 36% U.S. import tariff.
This affirmation is due to SCGD’s profit generated from the export to the U.S. is less than 1% of total sales. The company is also preparing to expand its export from Vietnam, using the region as the main production base. This is one of the company’s strategies to tackle a volatile economy and preparing for various uncertainties and challenges.
SCGD has seen Vietnam’s long term growth and competition potential. Beside having an economy that continues to advance, the nation also has working class infrastructure that is suitable for job hiring and manufacturing costs that can compete on a global scale. Furthermore, Vietnam is also the first ASEAN nation that the U.S. reduced its import tariff to 20%.
SCGD’s subsidiary in Vietnam, PRIME Group Company Limited, is also a leading company in the nation’s floor tile sector, dominating 20% of the country’s market share. The company also plans to advance into Vietnam’ southern region, using its distributor network and brand popularity as advantages.
Currently, SCGD is operating its glazed porcelain machine at full capacity and beginning to expand the manufacturing capacity at Pho Yen production plant. In the first phase, the company aims to increase the production limit by 2.5 millions square meter, and another 2.5 millions square meter in the second phase by 3Q25.
SCGD also plans to increase the production of its HVA and large title to increase its export to overseas markets, such as Australia, South Korea, Taiwan, and Europe, using Vietnam’s low manufacturing costs and tariff to expand the company’s market effectively.
