Vietnam’s leading construction material maker Viglacera overhauls three core businesses

Viglacera (HoSE: VGC), Vietnam's leading construction material producer and industrial real estate developer, unveiled sweeping restructuring plans for its three core businesses, namely sanitary ware, tiles, and real estate, within only a month, from August 22-September 17.

On September 17, Viglacera’s board approved a plan to revamp and streamline its sanitary ware segment.

Accordingly, a new entity, Viglacera Sanitary Ware Single Member Limited Liability Company (TBVS Company), will be set up to serve as the core unit for the segment.

VGC will transfer assets and staff from its two branches - Viglacera My Xuan Porcelain and Viglacera Faucet - to TBVS, and shut down the two units afterward.

TBVS will set up branches or factories at the sites of Viglacera My Xuan Porcelain in Ba Ria-Vung Tau, southern Vietnam, and Viglacera Faucet in Hanoi.

In addition, VGC will transfer its stakes at Viglacera Thanh Tri Porcelain JSC, Viet Tri Viglacera JSC, and Viglacera Trading JSC to TBVS.

TBVS will take over the management and operation of machinery and equipment from Viglacera Binh Duong Porcelain.

The consolidation of the sanitary ware segment comes as the business is expanding. In H1/2025, revenue from porcelain, faucets and accessories rose more than 50% from a year earlier to about VND491.5 billion ($18.63 million), according to VGC’s reviewed consolidated financial statement.

Earlier, VGC announced similar restructuring plans for its real estate arm on August 22 and for its tile business on August 27.

For tiles, it plans to merge Viglacera Hanoi JSC (VIH) and Viglacera Thang Long JSC (TLT) into Viglacera Tien Son JSC (VIT). After the merger, VIT will become the core unit, consolidating the entire value chain from production to sales in the tile segment, which accounts for a large share of VGC’s revenue.

For real estate, the company said the ownership structure at Viglacera Consulting JSC and Visaho JSC will remain unchanged for now, with divestment to be carried out “at an appropriate time.”

At the same time, VGC is also reorganizing its infrastructure construction units to streamline operations.

In H1/ 2025, VGC posted nearly VND6.1 trillion ($231.21 million) in net revenue, up 13.7% from the same period last year. The main growth driver came from industrial land leasing, with revenue reaching VND1.97 trillion ($74.67 million), up 21%.

Consolidated post-tax profit for the six-month period jumped 105.2% to VND838 billion ($31.76 million).

On the Ho Chi Minh Stock Exchange, VGC shares closed Friday at VND58,500 ($2.22) apiece.