Vietnam cement firms see strong profits in Q2 amid oversupply pressure

Vietnam's cement sector is witnessing a significant turnaround, as several companies report impressive profits amid ongoing competitive pressures from oversupply.

This resurgence is seen as a positive signal for the entire industry, especially with the anticipated boost from public investment in the latter half of the year.

After a challenging first quarter, where many companies recorded losses, the Vietnamese cement market has experienced a remarkable recovery, with several firms unexpectedly reporting substantial profits in the second quarter of 2025.

A notable example is Vicem Ha Tien Cement, which posted record profits, breaking an 11-quarter streak of poor performance.

The company reported consolidated net revenue exceeding VND1.93 trillion ($73.6 million) and a remarkable net profit of over VND112.3 billion ($4.27 million), a sharp contrast to a loss of nearly VND9.2 billion in the first quarter.

Despite a modest 1% increase in revenue year-on-year, the company's net profit surged by 145.5%, attributed to an 8.5% increase in cement consumption and reduced costs due to better production cost control.

Similarly, Vicem But Son Cement JSC recorded a bright financial picture, with net revenues of VND 672.2 billion in Q2, a slight decline of 2.8% from the same period last year. However, the company posted a net profit of VND12.4 billion, reversing a loss of nearly VND 40.2 billion in Q2 2024.

This turnaround was facilitated by a sharper decline in costs than the drop in revenue.

Vicem Hoang Mai Cement also reported strong results, achieving revenues of VND492 billion, nearly matching last year's figures, while net profit soared from VND270 million to VND7.34 billion.

The company benefitted from increased selling prices, particularly for clinker, which rose by VND130,000 per tonne compared to Q2/2024.

Meanwhile, VVMI La Hien Cement saw a 19.1% increase in sales volume thanks to signs of recovery in the real estate market. The average selling price also rose, contributing to a 13.34% increase in net profit, reaching VND13.66 billion in Q2/2025.

Positive outlook

While one strong quarter does not confirm a lasting trend, the significant profits reported by these companies amid intense competition are encouraging for the cement sector.

Analysts attribute this positive outlook to several factors, including the recovery of the real estate market and robust public investment.

According to the Ministry of Construction, cement and clinker consumption reached approximately 54.5 million tons, marking a 14% increase year-on-year.

Domestic consumption alone rose by 18%, signalling a strong recovery in the domestic market. Exports also increased by 6%, with around 17 million tons sold abroad.

With the Government's commitment to accelerating public investment and resolving project-related issues, the cement industry is expected to continue its recovery and exhibit strong growth potential in the second half of 2025, according to Tran Hien Phuong, senior director at KIS Vietnam Securities.

Large-scale projects are set to drive demand for construction materials, including cement, he added.

As the cement sector, predominantly comprising state-owned enterprises, shows signs of recovery, investors remain optimistic about potential policy support aimed at alleviating challenges within the industry.

If the sector continues to rebound, cement stocks could prove to be highly attractive, especially given their relatively low valuations.

Moreover, during prosperous business periods, companies like Vicem Ha Tien and Bim Son Cement consistently distribute dividends, making them appealing to investors seeking reliable returns.