Siam Cement Group's petrochemical project in Vietnam will face another delay, in wait for the new government to be elected and formed in March. SCG is the leader of the consortium working on the petrochemical complex project. Its partners are the Vietnam National Oil and Gas Group (PetroVietnam) and Vietnam National Chemical Group (Vinachem).
The US$4.5 bln (Bt134 bln) project had not yet struck a deal on investment incentives, so the existing government has decided to postpone the decision and let its successor handle the matter.
SCG had asked for its project to be promoted as Vietnam's national petrochemical project, but certain issues have not been resolved yet, such as an import-tax exemption for such items as naphtha and chloride throughout the operating period and a corporate-income-tax waiver for eight years. The Vietnamese government is still studying these requests, as it has never granted such privileges to industrial projects.