VICEM HOANG THACH CEMENT COMPANY LIMITED

Operating from Hai Duong with a designed capacity of 3.5 million tons per year, VICEM HOANG THẠCH CEMENT COMPANY LIMITED is a key subsidiary in Vietnam's state-owned cement network. Despite its scale, recent data highlights a company confronting structural challenges that are far from 

Weak Financial Performance & Margin Erosion

Recent industry analysis exposes alarming trends:

• Revenue dropped 23.2% year-on-year, indicating subdued demand or falling prices.

• Operating profit plunged 78.8%, while net loss widened by 85.7%, pointing to near-total margin collapse

• Net profit margin sits in negative territory—approximately –2.8%—dramatically below breakeven.

These weaknesses suggest VICEM Hoang Thach is not merely down in performance—it is losing per ton sold, a dangerous sign in a commodity industry.

Market Conditions & Structural Overcapacity

Vietnam’s cement sector is suffering from massive overproduction:

• Domestic capacity stands at ~120 Mt/year, while actual demand lags at 65 Mt.

• Companies are stockpiling clinker outdoors, raising inventory holding costs and pollution risks.

Added to this are energy cost surges—from coal to electricity—straining already fragile unit economics.

Rising Leverage & Liquidity Risk

Against a backdrop of falling equity, debt-to-equity ratios have climbed to 11.8×, signaling increased risk-taking, easily-strained cash flows and tiny liquidity buffers amplify solvency concerns if markets remain sluggish.

Systemic Risk & Regulatory Scrutiny

As part of the broader VICEM state-owned group, Hoang Thach is subject to government oversight:

• VICEM Corporation posted consecutive losses—VND 2.24 trillion cumulatively in 2023–24.

• Financial regulators have begun inspections and forced provisions for underperforming assets, underlining systemic concerns.

In this environment, financial interlinkages and contingent liabilities are not hypothetical—they are imminent.

Why This Matters for Risk Management

For credit managers, lenders, suppliers, or strategic partners, VICEM Hoang Thach represents a high‐volume but high-risk profile:

• Bleeding margins and losses threaten cash flow and debt capacity.

• Heavy leverage erodes financial flexibility.

• Downside demand and government interventions may trigger forced asset impairments or operational changes.

Surface-level analysis won't cut it. Stakeholders require detailed, accurate, and current intelligence to mitigate exposure.

Your Best Next Step: A Full VBI Risk Intelligence Report

For an entity burdened by decline, sector oversupply, and regulatory pressure, comprehensive due diligence is essential. VANGUARD BUSINESS INFORMATION LLC (VBI) offers a step-change in risk assessment with services like:

• Cash flow stress testing under demand and pricing shocks

• Debt maturity and contingent liability mapping

• Ownership and group exposure analysis

• Regulatory and inspection history

• Real-time monitoring of market and financial distress signals

Before engaging in any agreement or extending credit, risk professionals are advised to purchase VBI’s full intelligence report. It’s not just a smart move—it’s a necessity in managing risk in today’s unstable commodity markets.

VICEM HOANG THẠCH CEMENT COMPANY LIMITED remains a large-scale player, but not without sharp vulnerabilities. In an era of margin compression and sectoral uncertainty, clarity is crucial—and the VBI report delivers precisely that.