Ho Chi Minh City authorities have approved a US$500 million investment capital adjustment by SCG Chemicals in the Long Son Petrochemicals complex (LSP), raising total investment to US$6.156 billion from US$5.656 billion.
The complex, wholly owned by SCG Chemicals, a subsidiary of Thailand's SCG Group, is designed to produce ethylene, propylene, 1,3-butadiene, HDPE, LLDPE and polypropylene.
LSP began operations in 2022 but suspended production in mid-May 2026 amid difficulties in the global petrochemical market, feedstock supply constraints and logistics challenges. The shutdown could continue until March 2027.
During the suspension, the company continues trading and supplying polyolefin products to the domestic market while implementing upgrades to feedstock infrastructure and production technology. As of June 2026, main feedstock storage tanks were 61.5% complete and olefins plant modifications to enable ethane use reached 42.9%, with both expected to be completed in Q4 2028.
Following the upgrade, the complex will have annual olefins capacity of up to 1.35 million tons. The approval was reported by VCCI on Oct. 16.
