Vietnam Cement Industry Corp (VICEM) has reported consolidated losses of VND1.4trn (US$58m) for 2024, triggering government intervention. Deputy Prime Minister, Tran Hong Ha, has directed the Ministry of Construction and Ministry of Finance to investigate the causes and present solutions by 15 January.
VICEM, the only loss-making enterprise under the Ministry of Construction, recorded a stand-alone parent company loss of VND236.8bn (US$9.9m). Weak market demand and underperforming subsidiaries have been cited as primary challenges, with VICEM allocating over VND3trn (US$124m) for provisions. The corporation oversees 10 plants with a clinker capacity of 20Mta and cement output of 27Mta.
This marks VICEM’s second consecutive year of losses, highlighting broader difficulties in Vietnam’s cement sector. Government efforts aim to stabilise the company’s finances and safeguard state assets.