The figures were in a government report about the results of the socio-economic development plan and presented to the National Assembly.

Prior to that, the Hanoi Stock Exchange (HNX) in April released a list of cement companies with negative post-tax profit in 2023 and the ticker symbols ineligible for margin trading. The list consisted of some well-known brands, such as Bim Som Cement JSC, Vicem But Son, Hai Phong Trade Service and Cement Transport JSC and Vicem Hoang Mai JSC.

All of them are large manufacturers.

Vicem Ha Tien, Vicem Bim Son and many other names in the cement industry also had unsatisfactory business results in the first quarter of 2024.

Vicem Ha Tien, for example, reported a 12 percent decrease in revenue in comparison with the same period last year to VND1.495 trillion due to the sale decrease. The company reported a post-tax loss of VND25 billion.

Meanwhile, Bim Som Cement (BCC) got VND690 billion in net revenue, down 18.6 percent and post-tax loss of VND50 billion, higher than the loss in the first quarter of the last year (VND48.6 billion). This was the seventh consecutive quarter that the enterprise had taken a loss since the third quarter 2022.

Vicem But Son took a loss of VND55 billion, the sixth consecutive quarter.

In its report to the Prime Minister last March, VCA said the cement sales have decreased since 2022, leading cement manufacturers to a big loss.

As of 2024, 61 cement plants produced 117 million tons of cement a year, but only 87.8 million tons of cement and clinker were consumed in 2023, including 56.6 million tons for domestic sale and 31.2 percent for export.

The cement volume consumed domestically in 2023 was just 84 percent of that in 2022, while exports in 2023 were equal to 99 percent of that in 2022.

VCA reported that the cement industry is facing difficulties, and many manufacturers may go bankrupt or have to sell to foreign investors.

The association said domestic demand is very weak, while input material prices have increased, especially fuel and coal. This is also attributed to higher clinker import tariffs and the environmental pressure on cement plants.

VCA has asked for support from the state, proposing that the Prime Minister and ministries design solutions to increase cement consumption for public investment projects, including highways and viaducts, especially on weak soil in the central region and Mekong River Delta.

Hong Khanh