In a recent development, the Ministry of Finance’s Inspectorate has issued Inspection Decision No. 179, authorizing an inspection at the Vietnam Cement Corporation (Vicem) and three of its subsidiaries: Vicem Tam Diep Cement Joint Stock Company, Vicem Hai Phong Cement Joint Stock Company, and Vicem Ha Tien Cement Joint Stock Company.
The inspection will focus on key areas such as capital and asset management, revenue and expense accounting, and business performance reporting. Additionally, the inspection will scrutinize the companies’ compliance with financial obligations and other relevant financial regulations.
The inspection period covers the year 2023 and any relevant issues connected to this timeframe. Leading the inspection team is Mr. Pham Anh Tuan, Head of the Inspection Room, who will be accompanied by 11 other members.
Vicem Hai Phong Cement Factory, part of the Vietnam Cement Corporation. Source: Vicem |
The inspection is expected to last for 45 days from the date of the decision’s announcement. Vicem’s financial reports for the first half of 2024 reveal a challenging period for the company. During this time, clinker production reached 7.63 million tons, representing a 7.8% decrease compared to the same period in 2023, and only achieving 45.1% of the annual plan.
Cement production followed a similar trend, with an output of 9.77 million tons, a 7.2% drop from the previous year, and meeting only 45.4% of the planned target. The total revenue for the first six months of 2024 is estimated at VND 13,198 billion, a reduction of 19.4% compared to the same period last year, and reaching only 46.1% of the annual plan.
Vicem’s audited consolidated financial statements for 2023 further highlight the company’s financial struggles. The company incurred a post-tax loss of VND 1,129 billion in 2023, a significant contrast to the nearly VND 642 billion profit recorded in 2022. This substantial loss can be largely attributed to a sharp decline in revenue during the year.
Hong Khanh
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