Construction business is still very difficult

Production and business activities of enterprises under the Ministry of Construction are still very difficult. Revenue in the first 6 months of this year is estimated at 24,947 billion VND, equal to 94% over the same period, reaching 47% of the yearly plan, pre-tax profit did not meet the plan.

Pre-tax profits in the first half of 2024 of enterprises under the Ministry of Construction did not meet the plan.

Regarding information on the production and business situation of enterprises in the first half of 2024, the Ministry of Construction said that construction enterprises are still facing many difficulties.

The total production and business value of enterprises under the Ministry is estimated at VND 25,935 billion, equal to 94% over the same period and 45% of the 2024 plan. Revenue is estimated at VND 24,947 billion, equal to 94% over the same period and 47% of the 2024 plan.

Statistics on the business results of the first 6 months of 2024 of 6 state-owned enterprises under the management of the Ministry of Construction show that 2 enterprises reported losses and 4 enterprises reported profits. However, due to Vicem's heavy losses, the total losses of these groups of enterprises are still greater than their profits .

The business results for the first 6 months of 2024 of 6 enterprises in which the Ministry of Construction holds 100% of charter capital or controlling shares show that the Construction Mechanical Corporation (Coma) lost 2.6 billion VND; Vietnam Cement Corporation (Vicem) lost 863 billion VND; Viglacera Corporation made a profit of 575 billion VND; Hanoi Construction Corporation (Hancorp) made a profit of 20.1 billion VND; Vietnam Machinery Installation Corporation (Lilama) made a profit of 38.2 billion VND; Housing and Urban Development Investment Corporation (HUD) made a profit of 205 billion VND.

The Ministry of Construction said that the real estate and construction materials market situation is still very difficult; the fluctuating prices of materials and fuel, high foreign exchange rates, and fierce competition among enterprises have directly affected the business results of enterprises, leading to enterprises producing at a moderate pace, operating at a loss, and many targets not meeting the assigned plan.

Regarding the restructuring of state-owned enterprises and enterprises with state capital represented by the Ministry of Construction in the period of 2022 - 2025, in the first 6 months of 2024, the Ministry has adjusted the plan and actively implemented divestment at Viglacera Corporation; approved the restructuring project and 5-year production and business plan of Vietnam Cement Corporation; implemented the restructuring project of Housing and Urban Development Investment Corporation , Vietnam Machinery Installation Corporation and Construction Mechanical Corporation.

To promote business in the last 6 months of the year, Vicem representative said, facing the reality of excess supply and lack of output, Vicem proposed that the Ministry of Construction consider approving the plan to adjust and supplement the Charter capital; Continue to support the handling of existing problems and obstacles in the bidding packages of the Vicem Operation and Transaction Center Project.

Meanwhile, the Housing and Urban Development Investment Corporation proposed that the Ministry of Construction consult with Hanoi City to approve investment procedures for three social housing projects in Me Linh, Son Tay and Van Canh; and proposed that the Ho Chi Minh City Department of Construction advise the City People's Committee to approve procedures for the Hiep Binh Phuoc social housing project.

Source: https://baodautu.vn/doanh-nghiep-xay-dung-van-rat-kho-d219909.html