Vietnam’s cement giant Vicem posts profit after 2 years of losses

After two consecutive years of losses, Vietnam Cement Industry Corporation (Vicem) has reported a consolidated after-tax profit of over VND34 billion ($1.3 million) for the first half of 2025.

The corporation's domestic cement market share reached 27.41% in H1, up 0.03% from 2024 and 0.76% year-on-year, Vicem chairman Nguyen Quoc Viet told a company meeting in Hanoi on Thursday.

Clinker production totaled nearly 7.96 million tons, up 6.5% year-on-year and equivalent to 49.5% of the year's target. Cement exports reached 713,018 tons.

The parent company’s pre-tax profit was VND192.7 billion ($7.36 million), an increase of VND320.3 billion ($12.23 million) compared to the same period in 2024.

Looking ahead to Q3 and the final months of 2025, 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.

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, Viet added.

Given the current market conditions such as oversupply and fierce competition, the chairman stated that Vicem is focusing on maintaining profitability and achieving its full-year targets by optimizing 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 an annual capacity of 20 million tons of clinker and 27 million tons 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 VND1.4 trillion ($55.15 million) due to unfavorable market conditions. Its parent company’s loss reached VND236.8 billion ($9.33 million).