VICEM returns to profit after two years of losses

After two consecutive years of losses, Vietnam Cement Industry Corp (VICEM) has reported a consolidated after-tax profit of over VND34bn (US$1.3m) for the first half of 2025.

The corporation's domestic cement market share reached 27.4 per cent  in the 1H25, up 0.03 per cent from from the 2H24  and 0.76 per cent YoY, VICEM chairman, Nguyen Quoc Viet, told a company meeting in Hanoi on Thursday.

Clinker production totalled nearly 7.96Mt, up 6.5 per cent YoY and equivalent to 49.5 per cent of the year's target. Cement exports reached 713,018t.

The parent company’s pre-tax profit was VND192.7bn, an increase of VND320.3bn compared to the same period in 2024.

Looking ahead to the 3Q25 and the final months of 2025, Mr Viet said that VICEM expects continued growth in domestic cement consumption, driven by accelerated public investment, particularly in transport infrastructure.

In addition, real estate supply is projected to recover as measures to remove legal bottlenecks begin to prove effective, he noted.

Increased competition
However, the early arrival of the rainy and stormy season in the northern and central regions may negatively affect construction activity, potentially reducing regional cement demand.

In addition, the cement market continues to face several challenges, including ongoing supply-demand imbalances, intense price competition and a shift in customer preference from bagged cement to bulk cement and from premium to lower-priced products, reducing overall profitability, he added.

Given the current market conditions such as oversupply and fierce competition, the chairman stated that VICEM is focussing on maintaining profitability and achieving its full-year targets by optimising clinker operations and inventory, enhancing operational efficiency and securing raw material supply.

It will accelerate licensing and approval for mineral resource exploration, expand mining capacity and implement investment projects to ensure raw material availability.

The company also plans to invest in technology upgrades to increase production capacity and energy efficiency and accelerate waste heat recovery power projects to reduce energy costs and cut dust and CO₂ emissions.

VICEM, a state-owned enterprise under the Ministry of Construction, has been in operation for 45 years. It manages 10 factories nationwide, housing 16 production lines with a capacity of 20Mta of clinker and 27Mta of cement.The corporation is known for its popular cement brands, including Ha Tien, Hai Phong, Bim Son, Hoang Thach, But Son, and Hoang Mai. VICEM was the only among six firms under the ministry to report losses in 2024, with consolidated loss of VND1.4trn due to unfavourable market conditions. Its parent company’s loss reached VND236.8bn.