Vietnam cement giant sees business decline under Bui Hong Minh leadership

By Huu Bat, Huong Dung
Sat, February 25, 2023 | 8:50 am GMT+7

State-owned Vietnam National Cement Corporation (Vicem) saw its business results shrink in the 2017-2021 period under the leadership of general director Bui Hong Minh.

Minh, currently Deputy Minister of Construction, is facing disciplinary action for violations committed during the period, when he served as secretary of Vicem's Party Committee, chairman of the state-owned corporation's council of members, and its general director.

In 2017-2021, the corporation’s revenue increased by 1.94% per year on average, but its net profit decreased by 4.22% per year.

VIetnam National Cement Corporation's headquarters in Hanoi. Photo courtesy of the company.

VIetnam National Cement Corporation's headquarters in Hanoi. Photo courtesy of the company.

In 2021 alone, Vicem posted net revenue of VND27,772 billion ($1.16 billion) and after-tax profit of VND1,173 billion ($49.2 million), respective falls of 0.9% and 16.3% year-on-year.

The corporation attributed its 2021 business results to fierce competition, skyrocketing prices of input materials and fuel, the Covid-19 pandemic, and the trend of demand shifting from bagged cement to bulk.

In 2022, Vicem's profit continued to decrease due to difficulties stemming from the Russia-Ukraine conflict and the complicated and unpredictable market developments.

The firm announced that its 2022 revenue was estimated at more than VND39,450 billion ($1.65 billion), up 17% compared to 2021 but lower than the year target.

Its profit before tax was projected at over VND1,530 billion ($64.16 million), down 10% compared to the plan and down 30.5% year-on-year. These are the lowest levels since Vicem began information disclosure in 2015.

Its total assets as of December 31, 2021 reached VND37,645 billion ($1.58 billion), down 5.9% compared to the beginning of the period, with equity of VND21,995 billion ($922.41 million), up 0.4%; and liabilities of VND15,650 billion ($656.32 million), down 13.6% - the lowest level in the period 2017-2021.

As the domestic cement market is forecast to still face many difficulties in 2023, Vicem has set a target of earning VND40,919 billion ($1.71 billion) in revenue this year, an increase of nearly 4%.

The Party Central Committee’s Inspection Commission on Wednesday stated that Deputy Minister of Construction Bui Hong Minh committed violations "to the point that he should be disciplined”.

Minh's violations harm the reputation of Party organizations and Vietnam's cement industry, the commission concluded after reviewing some denunciations against the former Vicem leader.

The commission held that Minh had violated the principle of democratic centralism, working regulations, and Party members' code of conduct. He also failed to set a good example in leadership and management of production, business and personnel affairs, causing risks of loss of state investment capital.

Minh, 52, was Vicem's general director from September 2017 and chairman of its council of members from August 2019. He was also secretary of the corporation's Party Committee. In June 2021, Minh was appointed Deputy Minister of Construction.

Comments (0)
  • Read More
Property heavyweight Sun Group proposes more major investments in southern Vietnam

Property heavyweight Sun Group proposes more major investments in southern Vietnam

Sun Group, one of Vietnam’s top real estate developers, has proposed a slate of investments in the southern coastal province of Ba Ria-Vung Tau, focusing on commercial, tourism, and urban development.

Real Estate - Tue, May 20, 2025 | 2:09 pm GMT+7

HSBC facilitates five-year green club loan for Gamuda Land

HSBC facilitates five-year green club loan for Gamuda Land

HSBC Vietnam, in collaboration with Mizuho Bank, Sumitomo Mitsui Banking Corporation (SMBC) and UOB Vietnam, has announced to provide a five-year green club loan for Tam Luc Real Estate Corporation, a unit of Malaysian property developer Gamuda Land.

Banking - Tue, May 20, 2025 | 1:13 pm GMT+7

Japanese, Middle East firms eye $6 bln energy investment in HCMC 

Japanese, Middle East firms eye $6 bln energy investment in HCMC 

Several international corporations on Monday signed strategic cooperation agreements to develop two energy projects totaling $6 billion in Ho Chi Minh City.

Energy - Tue, May 20, 2025 | 11:50 am GMT+7

Thailand slashes growth forecast amidst US tariffs

Thailand slashes growth forecast amidst US tariffs

Thailand has lowered its economic growth forecast this year due to trade disruptions stemming from U.S. President Donald Trump's tariff policies.

Southeast Asia - Tue, May 20, 2025 | 9:07 am GMT+7

PV Gas subsidiary feeds LNG to Korean chaebol HS Hyosung in central Vietnam

PV Gas subsidiary feeds LNG to Korean chaebol HS Hyosung in central Vietnam

CNG Vietnam JSC (PV Gas CNG), a subsidiary of PV Gas, has officially commenced the initial phase of liquefied natural gas (LNG) delivery to HS Hyosung Quang Nam under South Korean chaebol HS Hyosung in central Vietnam.

Companies - Tue, May 20, 2025 | 9:04 am GMT+7

Vietnam's leading developer Novaland plans share issuance for debt conversion

Vietnam's leading developer Novaland plans share issuance for debt conversion

Novaland, a major real estate developer in Vietnam, plans to issue additional shares to convert debt into shares for some major shareholders who have lent the company in times of financial woes.

Companies - Tue, May 20, 2025 | 8:57 am GMT+7

ASEAN plans to set up monetary fund

ASEAN plans to set up monetary fund

The Association of Southeast Asian Nations (ASEAN) is taking steps to revive the idea of creating its own monetary fund, Malaysian Prime Minister Anwar Ibrahim has said.

Southeast Asia - Mon, May 19, 2025 | 9:57 pm GMT+7

Malaysia’s automotive industry undergoes major transformation with renewable energy policies

Malaysia’s automotive industry undergoes major transformation with renewable energy policies

New policies promoting renewable energy in Malaysia are sparking significant growth and reshaping the landscape of the country’s automotive industry towards sustainability and innovation.

Southeast Asia - Mon, May 19, 2025 | 9:54 pm GMT+7

Lifting Vietnam's coffee deep processing rate to 40-45% key to sustainable grower benefits: exec

Lifting Vietnam's coffee deep processing rate to 40-45% key to sustainable grower benefits: exec

Raising the deep processing rate of coffee to 40-45% is essential to ensure sustainable benefits for Vietnamese growers, says Nguyen Tien Dung, deputy general director of Simexco Dak Lak Ltd, one of the country's leading coffee exporters.

Economy - Mon, May 19, 2025 | 7:21 pm GMT+7

GSM launches Xanh SM platform, officially distributes VinFast VF 3, VF 5 electric vehicles in Laos

GSM launches Xanh SM platform, officially distributes VinFast VF 3, VF 5 electric vehicles in Laos

Green and Smart Mobility Joint Stock Company (GSM), the operator of Xanh SM - Southeast Asia’s first all-electric ride-hailing service - has officially launched the Xanh SM Platform in Laos.

Companies - Mon, May 19, 2025 | 4:47 pm GMT+7

Sunshine Group partners with Sunset Hospitality Group to bring YAMA brand culinary to luxury project in Hanoi

Sunshine Group partners with Sunset Hospitality Group to bring YAMA brand culinary to luxury project in Hanoi

Sunshine Group has officially signed a strategic partnership with Sunset Hospitality Group (SHG) to operate the YAMA brand - a unique poolside restaurant complex in the Hanoi-based Noble Crystal Tay Ho WorldHotels Residence project.

Companies - Mon, May 19, 2025 | 4:41 pm GMT+7

HCMC authorities to work with The Trump Organization on tower project

HCMC authorities to work with The Trump Organization on tower project

A delegation from The Trump Organization is set to work with Ho Chi Minh City's leaders on plans to build a skyscraper in the Thu Thiem New Urban Area.

Real Estate - Mon, May 19, 2025 | 3:32 pm GMT+7

New Politburo resolution like 'downpour after a drought' for Vietnam's private sector: entrepreneur

New Politburo resolution like 'downpour after a drought' for Vietnam's private sector: entrepreneur

Resolution 68 of the Politburo, Vietnam's highest decision-making body, will be a driving force of the breakthrough development of the private sector, said Vu Van Tien, chairman of conglomerate Geleximco.

Economy - Mon, May 19, 2025 | 2:45 pm GMT+7

Work starts on 5km Tu Lien bridge across northern Vietnam's Red River

Work starts on 5km Tu Lien bridge across northern Vietnam's Red River

Construction of Hanoi's Tu Lien bridge, which will be 5.15 kilometers long across the Red River, commenced on Monday.

Infrastructure - Mon, May 19, 2025 | 2:11 pm GMT+7

New State Bank of Vietnam circular removes obstacles for stock market status upgrade

New State Bank of Vietnam circular removes obstacles for stock market status upgrade

A new State Bank of Vietnam (SBV) circular will address bottlenecks in managing indirect investment capital flows and create favorable conditions for foreign investors, contributing to achieving a status upgrade for the country's stock market.

Finance - Mon, May 19, 2025 | 11:20 am GMT+7

IPPG eyes 8,000-hectare free trade zone project near Long Thanh Airport in southern Vietnam

IPPG eyes 8,000-hectare free trade zone project near Long Thanh Airport in southern Vietnam

Vietnam's Imex Pan Pacific Group (IPPG), led by chairman Johnathan Hanh Nguyen, is exploring a 8,000-hectare free trade zone project near Long Thanh International Airport in the southern province of Dong Nai.

Companies - Mon, May 19, 2025 | 8:49 am GMT+7