Inspection of Vietnam Cement Corporation and 3 subsidiaries

According to Decision 179 issued by the Ministry of Finance, the Ministry of Finance inspectors will conduct inspections at Vietnam Cement Corporation (Vicem) and 3 subsidiaries: Vicem Tam Diep Cement One Member Co., Ltd., Vicem Hai Phong Cement One Member Co., Ltd., and Vicem Ha Tien One Member Co., Ltd.

The inspection will focus on the following issues: Fulfillment of obligations to the State budget; management and use of capital and assets at enterprises; accounting for revenue, expenses and reporting on business results; inspection of compliance with other financial laws for enterprises. The inspection period is 2023 and issues related to the inspection period.

The inspection team consists of 12 members led by Mr. Pham Anh Tuan, Head of the Inspection Department. The inspection period is 45 days from the date of announcement of the inspection decision at the unit.

Vietnam Cement Corporation is facing a series of major difficulties in cement production and business, stemming from a sharp decline in market demand, both domestically and for export.

Sharing with the press, Mr. Nguyen Thanh Tung, Deputy General Director, said that the cement industry is still affected by weak demand when the real estate market has not shown signs of recovery, public investment projects are slow to implement, cement supply far exceeds demand, the application of reinforced concrete expressway overpasses is still limited, and the solution of using cement to reinforce and stabilize the ground has not been applied.

Vicem's clinker production output in the first 6 months of 2024 reached only 7.63 million tons, equal to 45.1% of the 2024 plan and down 7.8% over the same period in 2023. Cement production output reached 9.77 million tons, equal to 45.4% of the plan and down 7.2% over the same period.

Total product consumption in the first 6 months reached 11.45 million tons, equal to 47.6% of the 2024 plan and equivalent to the same period in 2023. Of which, cement consumption reached 9.86 million tons, down 6.2% over the same period last year.

Total revenue in the first 6 months only reached 13,198 billion VND, equal to 46.1% of the 2024 plan and down 19.4% over the same period in 2023. State budget payment reached 547 billion VND, down 20.9% over the same period.