Tan Quang Cement Joint Stock Company - VVMI: Overcoming difficulties, affirming position

Maintain market share

In recent years, the cement industry has been in a state of oversupply, causing many businesses to face great competitive pressure. Competitors in the industry have continuously applied price reduction policies, launched many stimulus programs to increase consumption output and reduce inventory. Faced with this reality, Tan Quang Cement Joint Stock Company has proactively adjusted its selling price policy to maintain market share.

From March 2024 to present, the company has continuously monitored the market closely and made timely adjustments to maintain its traditional customer base. Despite the challenging market, thanks to its flexible sales policy, the company has maintained its key markets in Tuyen Quang, Ha Giang and Lao Cai provinces. In particular, the VINACOMIN Tan Quang brand continues to be the top choice of consumers in this area. This is an important advantage, creating a premise for the company to continue to develop in the coming years.

Tan Quang Cement Factory Area.

However, one of the biggest difficulties for the Company in 2024 is the decline in demand for bulk cement. Bulk cement consumption is expected to decrease by about 20,000 tons compared to 2023. The main reason is that construction investment projects are behind schedule, market demand is declining, while competitors are reducing prices sharply to increase market share.

In addition, large bulk cement consumption markets such as Vinh Phuc and Phu Tho are conveniently located in terms of transportation and are close to cement factories in Ha Nam, Ninh Binh, and Thanh Hoa, which have large production capacity and lower prices. This makes it difficult for Tan Quang Cement to compete on price.

Conveyor system of raw materials into the factory.

Faced with this situation, the Company quickly adjusted its business strategy. Instead of focusing on the bulk cement market, the Company promoted the consumption of bagged cement, especially in strategic markets such as Tuyen Quang, Ha Giang, and Lao Cai. Thanks to the right solutions, Tan Quang Cement still maintained and increased its market share, contributing significantly to the business results in 2024 and creating a foundation for development in 2025.

Technological innovation

Faced with competitive pressure and market fluctuations, Tan Quang Cement Joint Stock Company has proactively innovated production technology to improve product quality, save costs and improve operational efficiency. In 2024, the Company implemented a series of technical improvements, including upgrading the heat exchange tower system to help reduce clinker coal consumption. At the same time, the Company invested in a power generation system from waste gas heat, contributing to energy saving and reducing production costs. The electrostatic dust filter system has also been improved to minimize environmental pollution, meet emission standards and protect a green - clean - beautiful environment.

A stage of Tan Quang cement production and transportation is automated.

In addition, mining operations are also more strictly managed. The company has renovated and expanded the Trang Da limestone mine, optimizing resources to serve long-term production. These steps not only help Tan Quang Cement improve its competitiveness but also create sustainable advantages, helping the company maintain its position in the cement industry.

Strategic flexibility

Entering 2025, Tan Quang Cement Joint Stock Company aims to maintain growth momentum by continuing to expand the market, improve product quality and improve business efficiency. Regarding production, the Company plans to produce over 870,000 tons of cement, with total expected consumption reaching 890,000 tons. Net revenue is expected to be over VND 800 billion, pre-tax profit VND 42.5 billion. In particular, the Company focuses on increasing income for employees, aiming for an average salary of VND 14-15 million/person/month.

Tan Quang Cement Joint Stock Company - VVMI loads cement into trucks for partners in and outside the province.

Regarding consumption strategy, the Company continues to closely follow market developments, applying flexible sales policies to maintain market share. The Company aims to: Maintain existing markets, especially large, long-term customers; expand consumption markets in areas where Tan Quang Cement is not available; encourage customers to pay in advance to ensure stable cash flow; promote debt collection, strive to reduce bad debts to less than 0.5 billion VND by the end of 2025.

At the same time, the Company continues to invest in key projects to improve production capacity. Some important items in 2025 include: Renovating the dust filtration system to better control emissions; upgrading office buildings to improve working conditions; investing in modern technology equipment to improve productivity and cement quality. In addition, labor safety is also a top priority. The Company strengthens protective measures and conducts periodic training to ensure absolute safety for workers and minimize work accidents.

Thanks to the right strategy and flexible solutions, Tan Quang Cement Joint Stock Company - VVMI continues to affirm its solid position in the market, creating a foundation for strong and sustainable development in the future.

Source: https://baotuyenquang.com.vn/cong-ty-co-phan-xi-mang-tan-quang-vvmi-vuot-qua-kho-khan-khang-dinh-vi-the-209121.html