BANGKOK, Reuters – SCG Packaging (NYSE 🙂 Pcl announced Monday a 11.8 billion baht ($353.93million) expansion of its Vietnam packaging paper business. This was in anticipation of growing demand.

In Vinh Phuc, northern Vietnam, a new plant will be constructed. It is expected to start operations by 2024. The facility, which produces 870,000 tons of packaging paper annually, has increased from the current 500,000 production, SCGP stated in a statement.

Vina Kraft Paper (a joint venture formed by SCG Packaging with Japan’s Rengo Company) will run it. SCGP has 70%.

Wichan Jitpukdee chief executive stated that Vietnam is a strong consumer and is an important regional export market. It will be a major draw to multinational companies looking for investment opportunities.

Wichan predicted that Vietnam would experience a 6%-7% increase in demand between now and 2025.

SCGP, an affiliate of Siam Cement Pcl in Thailand, stated it would finance its expansion using cash and debt.

A Thai company has recently expanded in Southeast Asia with Vietnam as the latest target. Vietnam is a country that’s growing rapidly and home to 98 million people. This makes it one of the most attractive countries.

Lender Bank of Ayudhya Pcl last month said it would acquire a consumer finance company, SHB Finance https://www.reuters.com/article/bank-of-ayudhya-vietnam-idCNL1N2PW0RZ in Vietnam for $155 million.

Thailand has been badly affected by the pandemic. In August, the government cut https://www.reuters.com/article/thailand-economy-gdp-idUSL4N2PL05N its 2021 economic growth forecast to 0.7 to 1.2% from 1.5 to 2.5%, the third time it has done so.

Last year, the Thai economy suffered a 6.1% slump.

Vietnam’s outlook was brighter https://www.reuters.com/world/asia-pacific/vietnam-minister-sees-2021-gdp-growth-35-40-media-2021-09-15 with the government expecting up to 4% growth