Viglacera prospers thanks to core focus
Viglacera prospers thanks to core focus
Despite a long standing context of state-owned enterprises investing into non-core businesses, often at a loss, Viglacera has kept its focus.
According to Viglacera chairman Luyen Cong Minh, the company has consistently stuck to its core sector over its 40 years of development. He added that Viglacera holds the top position in producing building materials such as glass, ceramic, granite and cotto tiles, which it supplies to cities and provinces throughout Vietnam and exports to over 40 countries around the world.
Starting with 18 small businesses producing tiles and bricks manually, Viglacera has now grown to become the leading building materials producer in the country with 12,000 workers under 40 subsidiaries and factories. The company produces 15 million bathroom sanitary ware sets, 450 million square metres of tile, and 160 square metres of glass each year.
Viglacera is also well known for its reliability in the real estate market. Until now, about one-third of low-income apartments in Hanoi belong to the company, and it is continuing its investments into this area.
In the first half of this year, Viglacera’s revenue was VND2.1 trillion ($100 billion), increasing 31 per cent on-year, including VND553 billion ($26.3 million) from building materials, VND1.5 trillion ($71.6 million) from real estate, and VND29.3 billion ($1.4 million) from other sectors.
The company expects a total profit of VND270 billion ($12.8 million) in 2014, including a forecasted VND115 billion ($5.5 million) in the latter half.
According to Viglacera deputy general director Nguyen Minh Tuan, the company will focus on a green revolution in science and technology. In particular, environmentally-friendly materials, namely concrete bricks, clinker bricks, power saving glass Low-e, and water saving showers will all be introduced in the near future.
Viglacera’s total chartered capital increased from VND443 billion ($21.1 million) in 2009 to VND625 billion ($29.8 million) in 2010, and again to VND1 trillion ($50 million) in 2012. It is expected to rise this year to VND2.65 trillion ($126 million).
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