SCGJWD Logistics Public Company Limited (SJWD) further expanded its business portfolio abroad by closing new deals with two customers in Vietnam, worth a combined 450 million baht. One contract is with Vina Kraft Paper to expand logistics services for four years and cooperate on a project to utilize electric vehicles in the quest toward Net Zero. Another contract is with A.J. Plast (Vietnam) Company Limited to provide complete logistics services in the form of an “end-to-end logistics & supply chain financing solution.” This service includes the transportation of machinery from Thailand to Vietnam and installation to support the phase-2 plant expansion. This project will also be a collaboration with Transimex Corporation, SCGJWD’s logistics partner in Vietnam, to co-provide services. A plan is also underway to negotiate further opportunities for the additional construction of a new warehouse, along with a management deal.
Mr. Bunn Kasemsup, Co-Chief Executive Officer of SCGJWD Logistics Public Company Limited (SJWD), the largest integrated logistics and supply chain service provider in the ASEAN, revealed, “With the Company’s 2025 business plan that focuses on the expansion of the overseas businesses as a main strategy, Vietnam is one of the countries that SCGJWD is most interested. Vietnam’s economy has high growth potential and is likely to benefit the most from China’s relocation and expansion of production bases to the ASEAN which reduces the effects of the uncertainty of trade war. The company has planned to aggressively expand logistics and supply chain services as well as to extend its expertise in providing end-to-end logistics & supply chain financing solution services to customers in various industrial sectors in Vietnam, including companies within the SCG Group and all other industrial customers.”
Recently, SCGJWD Logistics (Vietnam) Company Limited formerly known as SCG International Vietnam, a wholly owned subsidiary of SJWD, has signed new contracts with two customers in Vietnam. The first one was Vina Kraft Paper Company Limited (VKPC), an SCGP Group company and a leading packaging paper manufacturer in Vietnam, which is also a joint venture company between Siam Kraft Industry Company Limited, an SCGP Group subsidiary, and Rengo Company Limited of Japan. The other company that signed a contract was A.J. Plast (Vietnam) Company Limited. It is a manufacturer of plastic film for packaging and a joint venture between SCG Chemicals Public Company Limited and A.J. Plast Public Company Limited of Thailand. The combined value of the two new contracts worth over 450 million baht will help strengthen the SCGJWD performance and generate higher revenue in Vietnam.
SCGJWD Logistics (Vietnam)’s logistics services contract with Vina Kraft Paper was for an additional four years from 2025 to 2028. The contract was to provide transportation services for recycled paper to Vina Kraft Paper’s factory, as well as the cooperation in the project to convert electric-powered vehicles within Vina Kraft Paper’s factory and warehouses. This replacement of diesel-powered forklifts with EV forklifts aims to reduce carbon emissions to achieve the Net Zero target and to investigate the value in reduced logistics costs.
Mr. Charvanin Bunditkitsada, Co-Chief Executive Officer of SCGJWD, said, “The new contract with A.J. Plast (Vietnam) will extend the end-to-end logistics & supply chain financing solution services to support its plant expansion. We will provide the machinery transportation services from the A.J. Plast plant in Thailand to Vietnam via sea freight and the machinery installation services, including the management of warehouses at the phase-2 plant after the installation of the machinery is complete and begins the production process. This project will be supported by Transimex Corporation, SCGJWD’s logistics partner in Vietnam. They will provide machinery extraction services from containers and inland transportation in Vietnam.”
Furthermore, SCGJWD Logistics (Vietnam) intends to negotiate an expansion of its services with A.J. Plast (Vietnam), which has plans to construct a new warehouse. The company expects to leverage the investment and the construction of the new warehouse in the form of a “built-to-suit” arrangement according to the specific needs of the customer, either for direct delivery or long-term lease, along with the provision of warehouse management and logistics services.
“The company is expanding its services in the form of end-to-end logistics & supply chain financing in Vietnam to meet the specific needs of each customer, which helps increase per-project revenue. In addition to the new contract with A.J. Plast (Vietnam), SCGJWD is also negotiating with another customer in Vietnam, with the conclusion expected to materialize in the second half of this year,” Mr. Charvanin added.
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