Vicem falls short of corporate valuation

The pre-equitisation valuation of the Vietnam Cement Industry Corporation (Vicem) carried out by an independent auditor fell short by nearly VND1.17trn (US$50.3m), according to the State Audit of Vietnam.

The state audit agency informed the Ministry of Construction that the valuation of Vicem in October 2018 was VND28.22trn, including the state capital of VND27.8trn. However, the corporate evaluation carried out by the independent auditor valued Vicem at VND27.05trn and the state capital at VND26.6trn.

According to the state audit agency, the independent audit did not value Vicem's mining subsidiaries or the land areas owned by Vicem. Vicem had nine licences to produce cement for periods between 2-30 years at the time of the audit. Those companies were licenced to extract 11.5Mta of materials for cement production.

Long-term investments such as Vicem's VND3.66trn in Siam City Cement Vietnam were also not recorded in the independent audit.

The Ministry of Construction is currently reviewing the actions of Vicem and its member companies regarding financial reports, land use permits and postponed development projects.