Vietnam Ministry of Construction Postpones Viglacera (VGC) 38% Stake Divestment to 2026-2030

Overview

The Ministry of Construction has postponed the divestment of its 38% stake in Viglacera (VGC), originally scheduled for 2024-2025, to a later suitable time in the 2026-2030 period. The delay, announced at VGC’s 2026 annual general meeting, is attributed to valuation complexities and unfavorable market conditions, removing near-term supply overhang but prolonging state ownership uncertainty.

Key Facts

• Ministry of Construction holds 38% stake in Viglacera (VGC).
• Divestment originally planned for 2024-2025, now postponed to 2026-2030.
• Announcement made at VGC’s annual general meeting on April 25, 2026.
• Valuation difficulties and market conditions cited as reasons for delay.
• Fuel costs account for 20-40% of production costs for construction materials.
• VGC focuses on affordable housing segment, targeting 70-80% of market demand.
• VGC shares closed at VND 46,000 on April 10, 2026, up 1.09%.

What Happened

At Viglacera’s annual general meeting on April 25, 2026, Deputy Minister of Construction Nguyen Van Sinh informed shareholders about the revised divestment timeline. The government had approved a plan to divest the state’s stake in VGC during 2024-2025, but the process stalled due to difficulties in enterprise valuation, especially as VGC expanded into international projects and diversified operations.

Sinh stated that the Ministry of Construction reported to the Prime Minister in February 2026, proposing to suspend the divestment and reconsider it during the 2026-2030 period at an appropriate time. The ministry emphasized the need to ensure transparency and avoid losses of state capital and assets.

Market Context

VGC shares closed at VND 46,000 on April 10, 2026, up 1.09% with volume of 1.1 million shares. The stock trades on HOSE. The construction materials sector faces headwinds from rising fuel costs (20-40% of production costs) and a slowdown in real estate credit, which has dampened demand. VGC’s focus on affordable housing aligns with policy priorities but near-term earnings face pressure from input cost inflation.

Strategic Significance

The postponement removes the immediate overhang of a large secondary share sale, which could have pressured VGC’s stock price. However, it also means the state will remain a dominant shareholder for at least another four years, limiting free float and potentially delaying corporate governance improvements. For long-term investors, the delay provides stability but also uncertainty about eventual privatization. VGC’s strategy to target affordable housing (70-80% of demand) positions it well for policy support, but execution depends on cost management and project timelines.

What to Watch

• Any new valuation reports or government directives on state divestment timeline.
• Q2 2026 earnings release for VGC to assess impact of fuel costs and demand.
• Changes in real estate credit policy and interest rates affecting construction demand.
• Progress on VGC’s international projects and their impact on valuation.
• Any announcements of strategic partnerships or M&A that could alter divestment plans.