Why Are Cement Giants Divesting from Multiple Enterprises?

Specifically, Vicem plans to auction shares in lots of CTCP Vicem Transport Hoang Thach, a subsidiary it owns.

Vicem will offer all 33,545 shares of Vicem Transport Hoang Thach JSC at a par value of VND 100,000 per share, with a starting price for the entire lot set at VND 10.43 billion. The auction is scheduled for 10:30 AM on December 23, 2025.

Vicem Transport Hoang Thach is currently a subsidiary of Vicem, with a 51.61% ownership stake as of Q2 this year.

At Dong Nai Roofing and Construction Materials JSC, Vicem plans to auction 3,402,366 shares with a starting price of VND 51.68 billion.

Simultaneously, Vicem is divesting from three other joint ventures and associates: Ha Tien Packaging JSC, Hoang Thach Packaging JSC, and Song Da 12 JSC.

At Ha Tien Packaging, Vicem plans to sell 1.538 million shares with a starting price of VND 73.67 billion.

For Hoang Thach Packaging, the number of shares offered is 568,448, with a starting price of VND 43.14 billion. As for Song Da 12, Vicem plans to auction 1.2 million shares with a total starting price of VND 2.4 billion.

These three companies are associates in which Vicem holds stakes of 38.45%, 27.76%, and 24%, respectively, according to the Q2 consolidated financial report.

The share auctions are part of the implementation of the Restructuring Plan for the Corporation for the 2021-2025 period, approved by the Ministry of Construction in Decision No. 528/QĐ-BXD in June 2024.

Based on the plan, Vicem’s Board of Members issued Decision No. 1319/QĐ-Vicem on August 14, 2024, approving the implementation plan, followed by Decision No. 1748 on October 25, 2024, regarding the divestment plan for 2024-2025.

Previously, Vicem’s Board of Members also issued decisions approving the implementation plan and divestment roadmap for subsidiaries in 2024-2025, focusing resources on core production and business activities.

Last year, the Ministry of Finance’s Inspectorate highlighted that Vicem’s investments in certain companies posed a risk of capital loss.

In response, the Inspectorate urged Vicem to review and evaluate financial investments in underperforming companies. Vicem must direct its capital representatives to propose specific solutions to the Board of Members and Board of Directors to address financial difficulties and prolonged accumulated losses.

The Inspectorate also required Vicem to promptly consider and implement appropriate financial oversight for companies showing signs of financial instability.

In 2024, Vicem reported a consolidated loss of VND 1.4 trillion. In 2023, the corporation also lost approximately VND 1.129 trillion. In the first six months of 2025, Vicem recorded a parent company profit of nearly VND 193 billion and a consolidated profit of over VND 34 billion after two consecutive years of losses.

Vicem, a state-owned enterprise under the Ministry of Construction with over 40 years of history, manages 10 plants nationwide with 16 production lines, producing 20 million tons of clinker and 27 million tons of cement annually. Its ecosystem includes renowned brands such as Ha Tien, Hai Phong, Bim Son, Hoang Thach, But Son, and Hoang Mai.