The Ministry of Finance has launched an audit to investigate the financial, accounting, and tax compliance of Vietnam Cement Industry Corporation (Vicem) and its three subsidiaries following significant financial losses.

The subsidiaries belonging to the Vietnam National Cement Corporation (Vicem) have reported a loss of VND300 billion and profit of minus VND144 billion. The Vietnam Cement Association (VCA) has warned that some companies may go bankrupt.

The VN National Cement Association has just submitted a proposal to the PM aimed at addressing financial and production bottlenecks faced by cement manufacturers who are at risk of bankruptcy and potential acquisition by foreign companies.

Decreased demand and increased costs have put cement makers in a difficult spot financially during the first quarter of 2023, said industry insiders and experts.

The Vietnam National Cement Association (VNCA) said that the export of cement and clinker would continue to face difficulties this year.

The prospects of cement enterprises in the second half of the year will continue to improve, especially during the construction season at the end of the year.

The cement industry needs capable investors and large-scale producers to navigate eco-friendly and high efficiency production and generate quality products at lower costs, said Vietnam Cement Association chairman Nguyen Van Cung.