Vicem needs to innovate its operations and improve business efficiency.

Minister of Construction Tran Hong Minh requested the Board of Directors and Executive Board of Vicem to innovate leadership methods, improve management and corporate governance efficiency, review and adjust production and business plans for 2025.

Minister of Construction: Vicem needs to innovate its operations and improve business efficiency

Minister of Construction Tran Hong Minh requested the Board of Directors and Executive Board of Vicem to innovate leadership methods, improve management and corporate governance efficiency, review and adjust production and business plans for 2025.

Minister Tran Hong Minh directed a number of major issues at a working session with Vietnam Cement Corporation (Vicem).

The direction of Minister Tran Hong Minh to the Board of Directors and Executive Board of Vietnam Cement Corporation (Vicem) was stated at a recent working session of the Ministry's leaders with this enterprise.

Faced with a series of difficulties of enterprises, business losses for 2 consecutive years, Minister of Construction Tran Hong Minh requested the Board of Directors and Executive Board of Vicem to immediately innovate leadership, direction, and operation methods, improve management and corporate governance efficiency, strongly apply scientific and technological advances, immediately review all input stages, reduce unnecessary departments and procedures to maximize savings on unnecessary costs.

"Vicem must review and adjust its production and business plans for 2025," the Minister emphasized, and he assigned Deputy Minister of Construction Nguyen Viet Hung to direct and immediately remove difficulties and obstacles for businesses.

Reporting at the meeting, Vicem Chairman of the Board of Directors, Mr. Nguyen Quoc Viet, said: "2024 is an extremely difficult year for the construction materials industry in general and cement production in particular. Cement supply far exceeds demand, cement prices tend to continue to decrease while raw material and fuel input prices for production remain high."

Faced with that situation, in 2024, Vicem has synchronously deployed solutions in production and business activities.

Accordingly, the enterprise has been flexible and proactive in mobilizing kiln productivity closely following the actual market situation; increasing the rate of using raw materials and fuels to help reduce costs in production and business activities; reviewing and reducing costs in production, management and sales stages to improve operational efficiency.

Regarding solutions to implement the production and business plan in 2025 and the coming period, Vicem continues to deploy the solutions implemented in 2024, along with focusing on equipment maintenance and repair management to maintain stable production; closely linking production, consumption and inventory management to optimize operations; promoting the application of scientific and technological advances, increasing the use of alternative raw materials and fuels in the production of clinker and cement to save on non-renewable resources, reduce product costs, and increase competitiveness.

In addition, Vicem will research and develop new product production and business plans to increase competitiveness and meet market demand; increase cement processing and product consumption within Vicem, optimize logistics, reduce sales costs, promote brand advantages and overall efficiency; focus on accelerating the progress of projects utilizing waste heat to generate electricity, contributing to improving production and business efficiency...

Regarding construction investment, Vicem focuses on the following main groups of fields: in-depth investment projects, improving production capacity, reducing consumption, reducing emissions, enhancing the capacity to use waste products, other industries; Project groups utilizing waste heat to generate electricity and other construction investment projects.

Vicem currently owns 10 member enterprises producing and trading cement with famous brands such as Vicem Hoang Thach, Vicem Bim Son, Vicem Ha Tien..., with a production capacity of nearly 30 million tons of cement per year.

In recent years, cement business has encountered difficulties due to large surplus supply, weak domestic consumption, fierce competition in export, and low export prices. These unfavorable factors have dragged down Vicem's production and business efficiency.

2024 is Vicem's second consecutive year of loss with a loss of VND1,400 billion. The previous year, 2023, Vicem recorded negative profit for the first time of about VND1,129 billion.

Source: https://baodautu.vn/bo-truong-bo-xay-dung-vicem-can-doi-moi-cong-tac-dieu-hanh-nang-cao-hieu-qua-kinh-doanh-d258265.html