State firms sit on debt mountain

Tu Hoang The report on the 2014 performance of 781 State-owned enterprises (SOEs) says many of these businesses are struggling with huge debt. Accumulated losses racked up by 19 groups and corporations amount to more than VND24.5 trillion (over US$1 billion). Vietnam National Shipping Lines (Vinalines) incurred the highest loss, VND20.7 trillion, followed by Vietnam Southern Food Corporation (Vinafood 2) with VND1.1 trillion, Corporation No.15 with VND569 billion, Haprosimex with VND500 billion, Song Da Corporation with VND413 billion, Military Petroleum Corp. (Mipecorp) with VND334 billion, Vietnam Multimedia Corp. (VTC) with VND196 billion, and Housing and Urban Development Corporation (HUD) with VND188 billion. Losses of ten parent companies totaled a staggering VND2.9 trillion. Besides, consolidated reports of 10 groups and corporations unveil losses of VND4.9 trillion for parent firms and their subsidiaries. Of the total figure, Vinalines accounted for VND3.2 trillion, … [Read more...]

Groups, corporations show ineffective performance

Through data on financial condition and performance at state owned groups and corporations in 2014, The Ministry of Finance said that their operation effectiveness was not high. The Government has reported to the National Assembly last year financial condition, production and trading results of businesses that the Government holds 100 percent chartered capital, has shares or makes capital contribution. According to data at the end of 2014 fiscal year, the Government owns 100 percent chartered capital of 781 businesses including eight economic groups, 85 corporations excluding Vietnam Ship-building Corporation which is under restructuring as per a resolution by the Politburo and the Government. By the end of last year, their total assets topped VND3,100 trillion (US$137.83 billion) comprising VND2,800 trillion from groups, corporations, parent companies and subsidiaries. Total equity exceeded VND1,200 trillion (US$53.35 billion), up 7 percent over 2013. Pre-tax profit was down 1 … [Read more...]

Cement firms register solid profits


Cement firms are upbeat as rising domestic consumption has lifted their profits in the year to date. According to Tran Viet Thang, general director of state cement conglomerate Vietnam Cement Industry Corporation (Vicem), despite unfavourable exports, Vicem still registered a pre-tax profit of VND1.34 trillion ($62.6 million) in this year’s first half, which is up significantly from the figure of VND1 trillion ($46.7 million) posted one year ago. This year, the company expects that their full-year profits will surpass VND2 trillion ($93 million). The most impressive business performance among Vicem members was from Vicem Ha Tien 1 JSC, which saw their post-tax profit in the first six months of this year spike to VND397 billion ($18.4 million), an incredible surge in growth that dwarfs the meager VND13 billion ($604,650) in the first two quarters of 2014. Accordingly, the company’s net revenue jumped 19.4 per cent year-on-year to VND2.06 trillion ($96 million), and gross … [Read more...]

More State-owned corporations to go equitisation


More centrally-run State-owned corporations will go equitisation this year, according to the party committee of the group of centrally-run State-owned corporations. At a meeting on April 25, the committee said in 2015 it will push the equitisation of 52 member enterprises of centrally-run State-owned corporations and six holding companies – the Vietnam National Shipping Lines, the Shipbuilding Industry Corporation, the Song Da Corporation, the Housing and Urban Development Corporation, the Vietnam Cement Industry Corporation, and the Southern Food Corporation. The corporations will also have to withdraw all their investment from 549 enterprises, part of their capital at 42 enterprises and merge their 45 enterprises within this year. The centrally-run State-owned corporations group has 33 members, which together hold over one million billion VND (approximately 46 billion USD) of State capital. Among them, 28 are to undergo equitisation. As of December 31, 2014, five … [Read more...]

Construction ministry backs more cement exports

An employee is at work at the factory of Quang Son Cement Co. Ltd. in the northern province of Thai Nguyen. Deputy Minister of Construction Nguyen Tran Nam said that cement exports should be promoted as local material supply is abundant - PHOTO: TTXVN

Thuy Dung Nam said Vietnam still had to import cement in 2009, and exported 1.2 million tons and imported one million tons of cement in 2010. However, four years later, the country produced 71 million tons and exported 21 million tons worth nearly US$1 billion. Nam said he threw support behind more cement exports to back local producers, especially at a time when domestic consumption is declining. The country has more than 12 billion tons of limestone, which is enough for cement production for hundreds of years. According to Deputy Minister of Industry and Trade Tran Tuan Anh, the quality of Vietnamese-made cement has improved and is recognized by importing markets. Cement export is no longer a short-term solution as it has helped reduce inventories and balance supply and demand on the domestic market. However, the biggest problem of the cement industry, according to Nam, is that enterprises are competing with one another by undercutting prices instead of improving product … [Read more...]

‘Cement should be top export’


Vietnam should have a long-term strategy to make cement a large-scale and high-value export product to give a boost to the country's export revenue, said Deputy Minister of Construction Nguyen Tran Nam. Nam told the "Exporting cement towards sustainable development" conference held in Hanoi yesterday that he supports growing cement exports since the country's natural resources are large enough for production. The ministry estimated that limestone reserves could last for the next 100 years and are in good enough condition to support an expansion of the export market. The industry's output potential is projected to be as high as 100 million tonnes a year by 2020. "In my opinion, I support cement exports. However, the industry must have solutions for sustainable development issues that will arise due to big outputs," he added. Vietnam has become the fifth biggest cement producer and consumer in the world after China, India, Iran and the US. The "hot" growth of the industry, … [Read more...]

Cement sector looks for sustainable export

Vietnam exported more than 21 million tonnes of cement in 2014, but this year is forecast to be full of difficulties as demand stalls at traditional markets while many regional cement producing countries plan to raise output remarkably. The Import-Export Department under the Ministry of Industry and Trade reported at a workshop on cement export on April 23 that the country has 106 cement plants with total design capacity of 82 million tonnes a year, while domestic demand stands at around only 50 million tonnes. Representatives from the Vietnam Cement Industry Corporation (VICEM) said the sector hopes to boost export to reduce the amount of cement stockpile. However, the corporation is worried about strong increases in cement production in regional markets such as Japan, the Republic of Korea, China and India, while demands for Vietnam’s clinker show no sign of rising in traditional buyers like Bangladesh, Indonesia and the Philippines. Deputy Director of The Vissai Ninh … [Read more...]

Steel, cement firms asked to cut power consumption

Van Nam The corporation has urged power companies in 21 southern localities to work with manufacturers to prepare power use reduction plans to cope with possible electricity shortages in the dry season. Big power consumers have to report their electricity use plans to power companies. When signing new contracts, power companies and customers will have to negotiate on cutting power consumption by 10% or 15% in case demand outpaces supply. In the dry season two years ago, the corporation notified 6,000 industrial manufacturing companies in 21 provinces and cities in the southern region to save power so that power consumption could be cut by 10-15%. Around 200 out of the 6,000 companies are steel and cement makers. If producers can reduce electricity consumption by 10% in peak hours, about 610MW could be saved, 1.5 times of the capacity of Tri An hydropower plant. Cement factories can save up 30-40% of power consumption while steel makers can reduce by up to 25-30%, according to … [Read more...]

Company supports new rural area projects in Cao Bang


PANO - Hoang Thach Cement Company of the Vietnam Cement Industry Corporation (Vicem) on March 19th handed over 2,000 tonnes of cement to Cao Bang province to upgrade local rural roads. The quantity of cement will be used to build rural roads in the districts of Nguyen Binh, Trung Khanh, Phuc Hoa and Cao Bang city. Only three out of 163 communes in the province meet rural road standards set by the Government for new rural areas. From 2009 to 2014, under the Government's Resolution 30a, the corporation spent over VND 116 billion to support six needy districts of provinces of Nghe An, Thanh Hoa and Quang Nam. Translated by Anh Tien … [Read more...]

Vice President Nguyen Thi Doan awards Hoang Thach Vicem Cement Co. 1st-class Independence Order

Authorized by the President, Vice President Nguyen Thi Doan awards a 1st-class Independence Order to Hoang Thach Vicem Cement Company

Hoang Thach Vicem Cement Company on March 4 morning solemnly held its 35th founding anniversary and received a 1st-class Independence Order. In 35 years of construction and development, Hoang Thach Vicem Cement Company has produced and provided over 64 million tons of cement and dozens of million tons of clinker for the country and paid nearly VND4,700 billion to the State budget. The company has always been the leading unit and one of famous brand names of Vietnam's cement industry. Authorized by the President, Vice President Nguyen Thi Doan awarded the 1st-class Independence Order to Hoang Thach Vicem Cement Company. Mr. Bui Van Cuong, Alternate Member of the Central Party Committee, Secretary of the Central Business Bloc's Party Committee, presented the company with a hanging bearing the words "35 years of unity, innovation, construction, and development." Speaking at the ceremony, Secretary of the Hai Duong Provincial Party Committee Bui Thanh Quyen, Deputy Minister of … [Read more...]

Cement consumption rises 30 percent

Cement consumption in the country posted a 30 percent year-on-year rise in January 2015, reaching 5.87 million tonnes. The latest figures from the Department of Building Materials under the Ministry of Construction showed that local cement consumption in the first month of the year was higher than those in the previous month and in the same period last year. Specifically, the consumption was 4.37 million tonnes, which is 6 percent and 47 percent higher than last December and January, respectively. Of the total, the Vietnam Cement Industry Corporation (VICEM) sold 1.41 million tonnes of cement in local markets, 46 percent higher than its sales in the corresponding period last year. In addition, the amount of cement exported was estimated at 1.5 million tonnes. The department said that the selling price of cement last month was more stable than its price last year, thanks to the balance in supply and demand of cement production and consumption. By the end of last month, the … [Read more...]

Breakfast @ Tuoi Tre News – January 21

Politics    -- Vietnamese Prime Minister Nguyen Tan Dung on Tuesday met with Cardinal Fernando Filoni, Prefect of the Congregation for the Evangelization of Peoples, during his pastoral visit to Vietnam.    Society

Enjoy your breakfast while skimming through these news items in brief on Tuoi Tre News today, January 21, 2015. -- Police in Ho Chi Minh City’s District 1 said on Tuesday that they had arrested a 26-year-old woman, who works as a tutor for an international school based in the district, for attempting to blackmail the director of the school. -- The local government and related agencies in Phu Quy Island District in the south-central province of Binh Thuan on Tuesday morning received 12 crew members. Their boat’s engine failed on Friday last week when it was around 110 nautical miles from Phu Quy and was adrift until they were found and rescued on Monday. -- The Vietnam Expressway Corporation said at a Tuesday meeting that the Ho Chi Minh City-Long Thanh-Dau Giay Expressway, which is 55 kilometers long, will be open to traffic on February 8. -- An official in Thach Ha District in the central province of Ha Tinh has confirmed two three-year-old children drowned on … [Read more...]

Vietnam expects USD1 billion from cement export

Photo for illustration (Source:

Vietnam could rake in USD1 billion from exporting 20-21 million tonnes of cement and clinker in 2014, up 15 percent in value compared to last year, according to the Vietnam Cement Association. Preliminary statistics from the Customs General Department showed that the shipment of cement and clinker increased in both volume and value in January-October, reaching nearly 18 million tonnes. Major cement companies have reported positive results over the past time, with stable export volumes and many new markets. Tran Viet Thang, Director General of the Vietnam Cement Industry Corporation (Vicem), which holds 34 percent of the sector's output, said his company exported about 1.8 million tonnes of the products in the first three quarters of 2014 and plans to sell 1 million tonne in the last three months to raise its total exports to 3 million tonnes, meeting the yearly target set early this year. Last month, the Thang Long Cement JSC shipped 4,000 tonnes of cement to the Philippines . The … [Read more...]

Vietnam expects US$1 billion from cement export

Vietnam could rake in US$1 billion from exporting 20-21 million tonnes of cement and clinker in 2014, up 15% in value compared to last year, according to the Vietnam Cement Association. Preliminary statistics from the Customs General Department showed that the shipment of cement and clinker increased in both volume and value in January-October, reaching nearly 18 million tonnes. Major cement companies have reported positive results over the past time, with stable export volumes and many new markets. … [Read more...]

Vietnam expects 1 billion USD from cement export

Vietnam could rake in 1 billion USD from exporting 20-21 million tonnes of cement and clinker in 2014, up 15 percent in value compared to last year, according to the Vietnam Cement Association. Preliminary statistics from the Customs General Department showed that the shipment of cement and clinker increased in both volume and value in January-October, reaching nearly 18 million tonnes. Major cement companies have reported positive results over the past time, with stable export volumes and many new markets. … [Read more...]

Economic restructuring brings opportunities to investors

Investment opportunities from the equitisation of state-owned enterprises (SOEs), the acquisition of bad debts and investment in the consumer goods and retail sectors are of great interest to experts and investors in the current context, said the Vietnam Economic News. The Vietnamese securities market is said to offer great potential compared with other Southeast Asian countries and the equitisation of SOEs has attracted great attention from domestic and foreign investment funds. So far, Vietnam has equitised 4,100 SOEs. Under the Prime Minister's guidance, 432 SOEs must be equitised in 2014 and 2015. These include the Vietnam National Textile and Garment Group (Vinatex), three corporations established under Prime Ministerial Decision 91/TTg (Vietnam Airlines Corporation, Vietnam Cement Industry Corporation and Vietnam National Shipping Lines (Vinalines), 54 corporations established pursuant to Prime Ministerial Decision 90/TTg, and SOEs managed by different ministries, sectors and … [Read more...]

Cement consumption bounces back

The domestic consumption of cement in the first eight months bounced back to a sustainable status, which is being seen a relief for producers with surplus inventories. Chairman of Vietnam Cement Association Nguyen Quang Cung told Thoi Bao Ngan Hang (Banking Times) newspaper, "Cement plants are likely to run at full throttle." Chairman of Vietnam Cement Industry Corporation (Vicem) Luong Quang Khai said that his company's inventory has dramatically fallen. As of August 31, the total inventory was equal to 14 production days. … [Read more...]

Government praises businesses for cost savings

Vietnam Airlines is one of the companies that were praised for cost savings by the Government.

Deputy Prime Minister Vu Van Ninh on Monday sent a dispatch praising some ministries and state-owned economic groups and corporations for well implementing the Prime Minister's instruction on management cost saving and cost price reduction in 2013. The commended Ministries include Finance, Industry and Trade, National Defense, Transport and Construction. … [Read more...]

State-own enterprises urged to quicken equitisation

Hanoi, July 4 (VNA) - Some 135 State-own enterprises (SOEs) listed in the 2014-2015 equitisation plan are urged to set up their own steering committees to hasten the process of their equitisation. They are expected to declare their asset values by the end of the second quarter in 2015 and have their privatization plans approved by the third quarter of the year. As many as 432 SOEs have been planned for equitisation in 2014 and 2015. By June 20, 38 SOEs were privatized, two dissolved, 15 others merged and three announced bankruptcy, according to the Ministry of Finance. … [Read more...]

Nghe An cement manufacturer enjoys booming sales

The Vicem Hoang Mai Cement Joint Stock Company has sold 765,600 tonnes of cement on the domestic market since the beginning of 2014, equivalent to 113 percent of the year's plan. The sales of Hoang Mai cement have risen in many localities. The central province of Ha Tinh accounts for 58 percent of the market share of the firm and Nghe An province, 30 percent. The success has been attributed to the manufacturer's efforts in applying advanced technologies in production, adopting innovative sales activities and improving its management structure. These helped the firm maximise the capacity of its machines and equipment and cut down considerably on production costs. … [Read more...]