Thai investors have been flocking to Vietnam, the first step in their plans to conquer the ASEAN market, according to VietNamNet Bridge .

Thai SCG has set up 17 subsidiaries in Vietnam which have the total investment capital of hundreds of millions of dollars. It is expected that Vina Kraft Paper, one of the subsidiaries, will complete the 250 million THB plan on expanding its paper plant in southern Binh Duong province, raising the production capacity from 22,000 tonnes to 250,000 tonnes per annum.

SCG does not conceal its plan to continue exploiting other regional markets. In 2012, together with Vietnam , Indonesia was also the targeted market for SCG to expand its business to take full advantage of the available materials and low labor force there.

However, SCG does not intend to set up new businesses in Vietnam. The current gloomy real estate market, the high inventories of houses and building materials in Vietnam have prompted it to take a shortcut to enter the market.

Through SCG Building Materials, SCG spent 7.2 billion THB purchasing 85 percent of stakes of Prime Group, the Vietnamese biggest tile manufacturer which can provide 75 million square metres of products, or 33 percent of the output in Vietnam.

Also in 2012, SCG, through its subsidiaries, bought 23 percent and 20 percent of Tien Phong and Binh Minh Plastics Companies. The deals were worth 1.3 billion THB in total.

In the chemicals manufacturing sector, SCG, together with Qatari and a Vietnamese partner, received the license for a chemical complex worth 4.5 billion USD in the southern province of Ba Ria – Vung Tau.

Analysts believe that these are not the final deals of SCG in Vietnam , and the big guy is still seeking opportunities to buy Vietnamese small and medium enterprises operating in the fields that SCG is developing.

Not only SCG, but other big Thai groups have expressed their satisfaction about their business performance in Vietnam

The Nation in late 2012 quoted Deputy President of CP Vietnam Corp Sooksan Jiumjaiswanglert as saying that though foreign investors are eyeing Myanmar , CP still considers Vietnam an important market thanks to its high growth rate, from which CP will make further steps towards the other regional markets of Laos , Cambodia and China .

CP Group has announced that in 2013-2015, it will spend 50 billion THB to expand business in emerging markets.

Setting foot in Vietnam in 1993 with the animal feed manufacturing factory in Dong Nai province, CP Vietnam is now leading the animal feed market.-VNA