Vietnam Cement Industry Corporation (Vicem) has recovered two loss-making cement businesses, including Halong Cement and Song Thao Cement, but this does not mean that Vicem has received another loss-making business, Guangshan Cement. The Ministry of industry and trade,
which want to include Kwangsan Cement in Vicem
, has just sent a proposal to that government, Transfer the status quo of Quang An Cement Co., Ltd. from Vietnam Industrial Construction Corporation (Vinaincon) to Vicem and fulfill the debt repayment obligation
Quang for the debt borrowed by Vinaincon for the Quang Son Cement. Son Cement, formerly Thai Nguyen Cement, was invested by Vinaincon. The total investment of the project is more than 100 million Vietnamese Dong 3,500, and the design capacity is 1.51 million tons of cement per year. On March 22,
2003, the project was launched, but by the end of 2009, the project was completed and put into trial operation. In July 2011, the factory officially produced under the trademark of Quang Son Cement. Guangshan Cement has been encountering financial difficulties
because many cement companies have put their products on the market when they are officially running.
After one year of operation, Gwangsan Cement has lost more than VND 7 billion and has fallen into a huge risk of investment with no source of debt repayment, lack of production funds and survival or bankruptcy.
In recent years, the production and consumption of Guangshan Cement products have been much better, but it is still in a difficult area, and the growth of production and business is negative.
According to the report of the Ministry of Industry and Trade to the Prime Minister, by this time, the loan of Guangshan Cement Company had reached 95% of the total investment, so the company's financial cost was too high.
After Vinaincon completes the transfer of Quang Son Cement to Vicem, the Ministry of Industry and Trade will continue to instruct Vinaincon to proceed with State divestment in accordance with the Prime Minister's decision. What
does Vicem think of the reception?
In fact, the desire to add Guangshan Cement to Vicem has been rekindled for a long time. A few years ago, Vicem received a proposal from the Ministry of Construction to receive Guangshan Cement, but at that time, Vicem had received an unreceivable reply.
When talking with the reporter of Investment News, Mr. Luong Quang Khai, the vice chairman of the board of directors, said that the reason for not receiving Quang Son cement in the past few years was obvious. Vicem stood on the difficult problem, that is, to improve the operation effect of Gongguang. Therefore, the internal forces of the market and Vicem at that time were not conducive to the acceptance of weak enterprises.
As for the reason why Vicem received two cement plants a few years ago because of Song Thao Cement and Ha Long Cement, but now it can no longer receive Guangshan Cement, Mr. Khai explained that this is for the internal restructuring of the construction industry.
Received losses from 2 cement companies, so far Vicem still needs to strengthen to wake up. Initially, both plants have passed the difficult initial stage, but there is still a lot of Vicem to deal with to stabilize operations, achieve production efficiency and good business.
Vicem's report shows that by the end of 2017, Vicem had completed the first phase of restructuring of Songda Halon Cement and Housing and Urban Development Company Songshao Cement.
Over the past year, only the capital investment in the restructuring of Halon Cement has reached 480 billion yuan to repay the accumulated debt fund of the Ministry of Finance, showing the yielding shoulders of the vice president.
Mr Khai said it was important to try to look after Vicem's membership business as well as those of the other two businesses. The burden of joining the Quang Son Cement does not guarantee that the business will work better. Moreover, Quang Son's "mountain debt" may have dragged Vicem down. But Vicem's condition is limited.
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