The Uncertain Fate of Vicem’s Billion-Dollar Tower

The Ministry of Construction has recently approved the production, business, and investment plan for 2025 for the parent company, Vietnam Cement Corporation (Vicem).

According to the plan, Vicem aims to achieve a revenue and other income of over VND 543.1 billion in 2025. Both pre-tax and post-tax profits (excluding exchange rate differences) are targeted to reach approximately VND 247 billion.

The projected profit ratio after tax to owner’s equity (excluding exchange rate differences) is estimated at 1.49%.

The expected investment value for construction is over VND 263.3 billion, with a capital investment requirement of VND 259 billion. The target for state budget contribution is nearly VND 48.9 billion.

To achieve these targets, the Ministry of Construction has proposed several implementation solutions. One key solution is for Vicem to diligently execute the restructuring plan for the Vietnam Cement Corporation for the period of 2021-2025.

Additionally, the corporation is tasked with developing and implementing a strategy to handle and restructure its financial investments in other businesses, especially those that are operating at a loss or are inefficient.

Furthermore, Vicem is instructed to coordinate with the Board of Directors of Ha Long Cement Joint Stock Company to formulate a plan and timeline for the cessation of operations, relocation, and transformation of the Ha Long Cement Plant (belonging to Ha Long Cement JSC) in accordance with the planning of Quang Ninh province and the master plan of Ha Long city, while adhering to legal regulations.

Vicem is also expected to ensure full compliance in distributing profits and dividends, following legal regulations to maximize the benefits for the state and Vicem. A review will be conducted to retrieve profit and dividend distributions that have been approved but not yet collected.

Notably, the Ministry of Construction has instructed Vicem to focus on resolving difficulties and addressing the issues of its investment construction projects and those of its member companies. This includes the continued implementation of the investment and completion of the Vicem Operation and Trading Center tower, as per the approval of the Prime Minister and the directives of the Ministry of Construction.

The Operation and Trading Center project, initiated in 2010, has a total adjusted investment capital of over VND 2,743 billion. The tower comprises 31 floors above ground and 4 basement levels.

The goal is to establish a headquarters for Vicem and its subsidiaries, along with a hall and commercial services.

Construction began in May 2011, and by August 2015, the project had completed the structural framework. However, from 2015 onwards, the project came to a halt and was left abandoned.

In early March this year, Vicem officially restarted the construction of the Operation and Trading Center tower after a decade of inactivity.

According to the plan, Vicem aims to complete the project by the second quarter of 2026 to meet the essential workspace needs of the corporation. The project is expected to be operational by the fourth quarter of 2026.

Additionally, a portion of the project area is intended for leasing to optimize functionality, generate supplementary income, and maintain the building’s operations and optimal utilization of state capital investment.