Minister of Construction asks Vicem to adjust plan after 2 years of losses

At the working session between the Ministry of Construction and the Vietnam Cement Corporation (VICEM). Minister of Construction Tran Hong Minh requested that this enterprise must innovate its leadership methods, improve the efficiency of enterprise management, strongly apply scientific and technological advances and review the entire operating process to save costs, aiming to make a profit in 2025.

He assigned Deputy Minister Nguyen Viet Hung to directly direct and remove obstacles so that VICEM can adjust its business plan in a more effective and sustainable direction.

Minister of Construction Tran Hong Minh directed VICEM to make production and business profitable by 2025.

VICEM must apply technology, reduce costs, innovate operating methods, closely follow the market, and set a goal of making a profit by 2025.

With a history of 45 years of operation, it currently manages 10 factories nationwide, operates 16 production lines with a total capacity of 20 million tons of clinker and 27 million tons of cement per year. However, this enterprise is facing serious difficulties as it is the only unit out of 6 enterprises under the Ministry of Construction to record a loss in 2024. The parent company's profit was negative by more than VND 236 billion, while the consolidated loss was up to VND 1,400 billion. However, this loss is still lower than the original plan that VICEM expected. This is also the second consecutive year that Vicem has been in a loss, when in 2023, this enterprise recorded a negative profit for the first time of about VND 1,129 billion, bringing the accumulated loss by the end of the year to about VND 2,240 billion.

VICEM's difficulties come from the context of Vietnam's cement industry having oversupply, while consumption demand has decreased sharply, cement prices tend to continue to decrease, and input costs of raw materials and fuels remain high.

Mr. Nguyen Quoc Viet, Chairman of the Board of Members of VICEM, commented that 2024 is an extremely difficult period for the construction materials industry in general and the cement industry in particular. Faced with this situation, VICEM has implemented many synchronous solutions in production and business activities, and committed to continuing to implement restructuring measures in a more drastic, comprehensive and timely manner in 2025.

In addition to business difficulties, VICEM also faces serious legal problems. In early March 2024, the Police Department for Investigation of Corruption, Economic Crimes, and Smuggling prosecuted four former leaders of Vicem on charges of violating regulations on management and use of State assets, causing loss and waste.

The defendants include Le Van Chung, former Chairman of the Board of Members; Nguyen Ngoc Anh, former General Director; Du Ngoc Long, former Director of the Project Management Board and Hoang Ngoc Hieu, former Head of the Appraisal Department. Of these, three were temporarily detained, while former General Director Nguyen Ngoc Anh was released on bail.

Gia Hong