VICEM returns to profit in H1 as clinker output rises, public investment boosts demand

State-owned Vietnam Cement Industry Corporation (Vicem) reported July 4 a consolidated after-tax profit of around Dong 34 billion ($1.3 million) for the first half of 2025, a turnaround from two years of consecutive losses, amid stronger clinker production and operational improvements.

The company's clinker output reached nearly 7.96 million mt during the first six months, a 6.5% increase from the same period the previous year, meeting nearly half of the company's annual production target. Cement exports were heard totaling over 713,000 mt. The parent company posted a pre-tax profit of Dong 192.7 billion ($7.36 million), rebounding from a Dong 236.8 billion ($9.33 million) loss in H1 2024.

Vicem's domestic market share inched up to 27.41%. The company is optimistic about the second half of 2025, anticipating a rise in domestic cement consumption fueled by increased infrastructure spending and a recovering property sector, as legal reforms begin to ease constraints on real estate development.

Nonetheless, the market outlook remains mixed. The early arrival of the rainy season in northern and central Vietnam may hamper construction activity. At the same time, excess supply, stiff price competition, and a shift in buyer preference toward bulk and more affordable cement grades continue to weigh on margins.

Meanwhile, market sources said clinker prices in Asia held steady despite firmer freight rates and improving demand from regions like Africa and South Asia. FOB Vietnam levels were generally quoted in the range of $35-$36/mt, with minimal fluctuations. Cement prices continued to vary by specification -- bulk shipments were heard at $35-$37/mt FOB, while ASTM-grade cement for the US was indicated at $36/mt in bulk and $40-$44/mt for bagged cargoes.