Vicem faces second consecutive year of losses
Among the six enterprises directly managed by the Ministry of Construction, Vicem was the only one to incur losses in 2024.
HÀ NỘI — Vietnam Cement Industry Corporation (Vicem) has recorded its second consecutive year of losses, reflecting ongoing challenges in the cement industry.
Last year, Vicem reported its first-ever negative profit of approximately VNĐ1.13 trillion (US$44.4 million) due to a significant decline in demand, marking a notable financial downturn since its 2016 disclosures. By the end of 2024, the company’s cumulative losses reached more than VNĐ2.5 trillion.
The figures were revealed in a draft report by the Ministry of Construction, summarising the sector’s 2024 performance and outlining tasks for 2025.
Among the six enterprises directly managed by the Ministry of Construction, Vicem was the only one to incur losses in 2024. Specifically, the parent company reported a negative profit of VNĐ236.8 billion, while consolidated losses stood at VNĐ1.4 trillion due to a sluggish market.
However, these results exceeded Vicem’s initial projections, with losses reduced by VNĐ59.6 billion and VNĐ177.5 billion at the parent company and consolidated levels, respectively.
Despite the losses, Vicem’s financial results for 2024 were viewed as better than anticipated. The company had initially forecast a loss of VNĐ1.58 trillion, indicating a smaller-than-expected shortfall.
Last month, the Ministry of Finance’s Inspectorate released an audit report highlighting financial risks in several of Vicem’s subsidiary investments. The company was required to set aside provisions totalling over VNĐ3 trillion for underperforming ventures, prompting the Ministry to urge Vicem to review and reassess its financial commitments to ineffective businesses.
In contrast, the other five enterprises under the Ministry of Construction — Viglacera, Hancorp, Lilama, HUD and Coma — all exceeded their annual targets. Viglacera led the group with consolidated profits of VNĐ1.5 trillion, surpassing its goal by VNĐ400 billion. Hancorp achieved consolidated earnings of VNĐ84.25 billion, while Lilama, HUD and Coma reported profits of VNĐ70 billion, VNĐ386 billion and VNĐ14.15 billion, respectively. — VNS
