VICEM Reports Third Consecutive Annual Loss; Auditor Flags Going-Concern Risks at Subsidiaries

Overview

VICEM (Vietnam Cement Industry Corporation) reported its third consecutive annual net loss in 2025, with a loss of 158 billion VND, though narrowing sharply from 986 billion VND in 2024. Auditors flagged material uncertainty regarding the going-concern status of several subsidiaries due to accumulated losses and short-term debt exceeding current assets. The news underscores persistent financial distress in Vietnam’s cement sector amid oversupply and weak demand.

Key Facts

• VICEM’s 2025 net loss was 158 billion VND, compared to a loss of 986 billion VND in 2024.
• Revenue for 2025 reached 24,631 billion VND, up 8% year-on-year.
• Gross profit rose 62% to 2,751 billion VND.
• Accumulated losses as of December 31, 2025 stood at 3,408 billion VND.
• Three subsidiaries (Vicem Tam Diep, Vicem Song Thao, and Ha Long Cement) had combined accumulated losses of 8,054 billion VND.
• Short-term debt exceeded current assets by 4,091 billion VND at the parent level and by 7,465 billion VND at those subsidiaries.
• Two subsidiaries (Cement Miền Trung and Ha Long Cement) had negative equity as of year-end 2025.

What Happened

According to VICEM’s audited 2025 consolidated financial statements, the company posted a net loss of 158 billion VND, marking the third consecutive year of losses. While the loss narrowed significantly from 986 billion VND in 2024, the auditor emphasized material uncertainties that may cast doubt on the going-concern assumption for several subsidiaries. Specifically, Vicem Tam Diep, Vicem Song Thao, and Ha Long Cement had total accumulated losses of 8,054 billion VND and short-term liabilities exceeding current assets by 7,465 billion VND. Additionally, Cement Miền Trung (a subsidiary of Bim Son Cement) and Ha Long Cement reported negative equity.

VICEM management stated that the subsidiaries’ ability to continue as going concerns depends on improving operating results and securing financing to repay overdue debts. The parent company is reviewing support measures, including loan extensions, and directing subsidiaries to develop appropriate business and repayment plans.

Market Context

VIC is listed on HOSE and closed at 204,900 VND on June 2, 2026, with no change from the previous session. The cement sector has been under pressure due to oversupply, rising input costs, and weak construction demand. VICEM’s persistent losses and auditor warnings add to negative sentiment, though the narrower loss in 2025 may offer some relief. The broader market has shown mixed performance, with real estate and construction-related stocks facing headwinds.

Strategic Significance

VICEM’s financial struggles highlight structural challenges in Vietnam’s cement industry, including overcapacity and pricing pressure. The going-concern doubts at key subsidiaries raise the risk of restructuring or asset impairments. For VIC, which is primarily a real estate conglomerate, the cement unit’s performance is a secondary factor, but prolonged losses could weigh on group earnings and require capital injections. The company’s ability to turn around these subsidiaries or divest them will be closely watched.

What to Watch

• Q1 2026 earnings release for VICEM to see if loss trend continues.
• Any restructuring plans or asset sales announced for troubled subsidiaries.
• Updates on the legal case related to the VICEM Operations and Trading Center project, which may result in compensation.
• Changes in government policy on cement exports or infrastructure spending that could boost demand.
• VIC’s overall financial health and any support provided to VICEM.