The financial report for the first half of 2024 from six state-owned enterprises under the management of the Ministry of Construction revealed two companies reporting losses, while the other four turned a profit. However, the significant loss incurred by VICEM outweighed the collective profits, resulting in an overall loss for the group.
The abandoned billion-dollar tower of VICEM.
Breaking it down, VICEM reported a loss of 863 billion VND, Coma lost 2.6 billion VND, while Viglacera, Hancorp, Lilama, and HUD posted profits of 575 billion VND, 20.1 billion VND, 38.2 billion VND, and 205 billion VND, respectively.
According to the Ministry of Construction, these enterprises continue to face challenges due to the sluggish real estate and construction materials markets. Meanwhile, rising material and fuel prices, coupled with unfavorable exchange rates, have further compounded their difficulties. Some companies have been forced to operate at a minimal level, resulting in production setbacks and unfulfilled business plans.
The combined production and business value of these six enterprises is estimated at nearly 30,000 billion VND, equivalent to 94% of the same period in 2023 but only 45% of the planned target for 2024.
Their total revenue is estimated at nearly 25,000 billion VND, which is 94% of the figure from the first half of 2023 but only 47% of the planned target for 2024.
The pre-tax profit of these six state-owned enterprises under the Ministry of Construction’s management fell short of the target set for the first half of the year.
Prior to this, the Ministry of Finance announced an inspection of VICEM and its three subsidiaries: Xi măng Vicem Tam Diep One-Member Limited Company, Xi măng Vicem Hai Phong One-Member Limited Company, and Vicem Ha Tien One-Member Limited Company.
The inspection focused on capital and asset management, revenue and expense accounting, business result reporting, tax compliance, and adherence to other financial regulations.
The inspection period covered the year 2023 and any relevant issues connected to that time frame.
Bamboo Capital (BCG) surpasses 4,000 billion VND in revenue, reduces debt by 5,500 billion VND by 2023
The amount of debt to be paid has been reduced by more than 5,498 billion VND as the Group has actively settled all borrowings in order to lessen the cost of interest and ensure financial stability for the business.
LandX Services reports a loss of 160 billion VND in 2023, cuts over 1,000 staff
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Viglacera Reports First-Ever Loss
Viglacera, the construction equipment giant, reported a net loss of 48 billion VND in Q4/2023, due to declining revenues and high maintenance costs. This marks the first time the company has reported a loss since its inception.
Cen Land’s annual profits plummet to 2.5 billion VND, with nearly 60% of assets being accounts receivables.
Although the fourth quarter saw a reversal in profits, declining revenue resulted in Cen Land’s net profit for the entire year of 2023 only reaching 2.5 billion VND. It is worth mentioning that nearly 60% of the company’s assets consist of receivables from partners, with a total value of approximately 4,100 billion VND.
