State-owned glass and construction ceramic producer Viglacera will develop plans to reduce the State ownership in the firm to 36 per cent in May 2018.

The Government is expected to sell its remaining shares in Viglacera in 2019.

The State ownership ratio in Viglacera is now nearly 54 per cent and the Ministry of Construction is representing the Government to manage the State capital in the company.

The State’s shares will be sold via competitive bids, and the auction price will be the average of the prices recorded in the last 30 trading sessions prior to the bidding date.

Deputy general director Nguyen Anh Tuan said Viglacera had earned VND1.63 trillion (US$72.7 million) in revenue and VND144.3 billion in pre-tax profit in the first quarter of 2018.

The figures posted huge losses compared to the same period in 2017, Tuan said at a brief meeting on Monday.

Viglacera targets VND9.1 trillion in total revenue this year, down 1 per cent year on year, and VND950 billion in pre-tax profit, up 4 per cent year on year.

According to the company’s management board, the market has become tougher in 2018, and the company has already predicted the difficulties it may encounter this year.

Sales of construction glass was good last year but became neutralised in 2018, while sales of ceramics had been affected negatively since the end of 2017 due to growing market supply.

As Viglacera holds a minor market share for these segments (some 5-6 per cent), they will continue to be the hardest for the company this year, the management board said.

The company will invest VND2 trillion in new projects, a yearly increase of 28 per cent, including VND758 billion on housing development and trading, VND617 billion on industrial zone’s infrastructure and services, VND529 billion on construction material production and VND86 billion on research and development and human resources training. — VNS