The investment, which will be made through its Vina Kraft Paper Co (VKPC), is aimed at increasing packaging paper production capacity by about 370,000 tonnes a year.
Wichan Jitpukdee, chief executive of SCGP, expects the new production facility, which will be located in Vinh Phuc province, to start operations in early 2024.
Vietnam has strong domestic consumption, and the northern part of the country has attracted many multinational company investments.
"We expect our investment expansion in the north of Vietnam will meet the challenges of the steadily growing packaging market," said Mr Wichan.
Demand for packaging paper and related packaging products in the country is expected to increase by approximately 6-7% a year during 2021-2024, according to SCGP.
The new factory production project is currently going through an environmental impact assessment process.
Once the new facility is completed, VKPC's total packaging paper production capacity will stand at 870,000 tonnes a year, which will complement SCGP's expansion plan and boost its competitiveness in the future.
"SCGP has steadily invested in Vietnam with an expectation that our 2021 pro-forma annual revenue from sales will exceed 15,000 million baht," said Mr Wichan.
Since 2009, SCGP has rolled out its strategic investment plan in Vietnam by establishing packaging paper production based in the south of the country through VKPC.
The company is a 70:30 joint venture between SCGP and Rengo Co from Japan.
In 2016, VKPC doubled its original capacity in response to growing demand for packaging products in the region.
SCGP is confident it can earn 100 billion baht this year from domestic and overseas businesses as well as merger and acquisition deals, despite the prolonged Covid-19 outbreak.