Vietnam Cement Corporation with losses and waste?

After decades of construction, the "Vicem Operation and Trade Center" project, in which Vietnam Cement Corporation (Vicem) invested thousands of billions of dong, remains unfinished, causing loss and waste.

Project “Vicem Operation and Trade Center”. Photo: D.S.

The Ministry of Public Security's Investigation Police Agency said that through the investigation and verification of violations that occurred during the process of preparing documents and implementing the project of the "Vicem Operation and Commercial Transaction Center" building at Lot 10E6, Cau Giay Urban Area (Cau Giay District, Hanoi) of Vicem, the project implementation process had many violations that caused especially serious loss and waste of state assets. Therefore, the Ministry of Public Security's Investigation Police Agency has issued a decision to prosecute the criminal case of "violating regulations on management and use of state assets causing loss and waste" occurring at Vicem and related units.

At the same time, prosecuted, applied preventive measures and searched 4 suspects: Le Van Chung (former Chairman of the Board of Members); Nguyen Ngoc Anh (former General Director); Du Ngoc Long (former Director of the Project Management Board); Hoang Ngoc Hieu (former Head of the Appraisal Department of Vietnam Cement Corporation) for the crime of "violating regulations on management and use of state assets causing loss and waste", according to the provisions of Clause 3, Article 219 of the Penal Code.

It is known that the "Vicem Commercial Transaction and Operation Center" building project has an investment capital of 1,245 billion VND. The project is located in an area of ​​nearly 8,500m2, with a building design of 2,800m2, a scale of 31 floors above ground, 4 basements. In 2011, the project was started and expected to be completed after about 3 years but was behind schedule.

In August 2015, the project was topped out but then had to be temporarily suspended. 14 years later (March 5, 2025), Vicem and contractors restarted the project of the "Vicem Operations and Trade Center" building. According to the plan, Vicem strives to complete the building in the second quarter of 2026, serving Vicem's need for office space.

Regarding Vicem's operations, in November 2024, the Ministry of Finance Inspectorate issued an inspection conclusion pointing out a series of shortcomings in capital and asset management, many financial investments with potential risks of loss and capital loss at Vicem. Cost accounting has not fully and accurately reflected all arising economic transactions, leading to the determination of a lack of obligation to the State Budget through inspection of 11.9 billion VND.

According to the inspection agency, some investments at the parent company Vicem have potential risks of losing investment capital. By December 31, 2023, this Corporation has set aside provisions for losses for 7 investments with an amount of about 3,017 billion VND.

Notably, Vicem invested in Vicem Tam Diep Cement Company Limited with a capital of more than VND 1,132 billion (100% of charter capital). However, this subsidiary has accumulated losses of more than VND 1,126 billion, equal to 99.5% of the owner's capital contribution; and made provisions of more than VND 1,069 billion.

According to the inspection agency's assessment, this Company is having an imbalance in capital and low debt repayment capacity. Vicem is supporting the Company with loans to pay off due debts with a total amount of 396 billion VND.

The inspection also discovered that Vicem Tam Diep Cement One Member Co., Ltd. incorrectly increased its expenses by more than VND575 million, leading to a loss reduction of more than VND575 million. Therefore, Vicem had to adjust the investment loss provision at Vicem Tam Diep Cement One Member Co., Ltd. down by more than VND575 million...
In addition, 9 other subsidiaries and joint ventures invested by Vicem also had loss-making business results in 2023, but equity is said to be still higher than investment capital.

Vicem is known to be an enterprise under the Ministry of Construction , with a development history of more than 45 years. Vicem manages 10 factories nationwide with 16 production lines, a capacity of 20 million tons of clinker and 27 million tons of cement per year. The ecosystem is famous for the cement brands Ha Tien, Hai Phong, Bim Son, Hoang Thach, But Son....

Source: https://daidoanket.vn/tong-cong-ty-xi-mang-viet-nam-voi-nhung-that-thoat-lang-phi-10301068.html