Cement producers sustain growth as construction demand holds firm

Cement producers sustain growth as construction demand holds firm

Vietnam's cement producers delivered stronger first-half earnings as construction demand and infrastructure projects boosted sales, keeping the industry's growth outlook positive despite signs of slower market momentum in June.

Second-quarter 2026 financial results released by several cement manufacturers point to solid business performance both during the quarter and in the first half of the year.

Accordingly, Vicem Ha Tien Cement JSC has reported second-quarter (Q2) 2026 net revenue of approximately $90.4 million, up 17 per cent on-year. Its pre-tax profit reached $6.73 million, an increase of 31.7 per cent on-year.

The result marked the company's highest quarterly profit in the past five years, enabling Vicem Ha Tien to complete more than half of its annual profit target after the first half of the year.

Total cement and clinker consumption approximated 61 million tonnes in the first half of 2026, up nearly 16 per cent on-year

According to the company, the strong performance was driven by a 6.4 per cent increase in cement sales volume compared with the same period of 2025.

The company also recognised revenue from cost-recovery fees related to the construction of a road stretch connecting Nguyen Duy Trinh road to Phu Huu Industrial Park in Ho Chi Minh City.

For the first six months of 2026, Vicem Ha Tien posted net revenue of nearly $164.8 million and pre-tax profit of more than $10.8 million, representing on-year growth of 17.15 per cent and 109.5 per cent, respectively.

La Hien VVMI Cement JSC also reported improved results, saying cement sales volume rose about 12.4 per cent in Q2 as local property market showed signs of recovery.

In addition to higher average selling prices, which boosted revenue compared with the same period last year, the company's financial income increased by nearly 63.6 per cent. Measures to improve productivity and reduce production costs also contributed to stronger profit growth.

The company’s net revenue reached $7.9 million, up 5 per cent on-year, while Q2 pre-tax profit rose 47 per cent to $1 million. In the first half of 2026, the company's pre-tax profit totalled $1.12 million, an increase of 40.7 per cent from a year earlier.

Vicem But Son, which posted a pre-tax loss of $644,000 in the first half of 2025, returned to profitability with first-half 2026 pre-tax earnings of $564,000, including $440,000 in the second quarter alone.

Vicem Hoang Mai also reported positive results, recording first-half pre-tax profit of $320,000, up 1.5 per cent on-year.

According to data from the Vietnam Building Materials Information and Data Centre (BIDC), total cement production reached 58.14 million tonnes in the first half, an increase of around 9 per cent compared with the same period last year.

Total cement and clinker consumption reached 60.98 million tonnes, up nearly 16 per cent. Although June saw signs of slower market growth, cumulative first-half results continued to reflect solid underlying demand.

Domestic consumption totalled 41.58 million tonnes, up 16 per cent on-year, while total exports reached 19.4 million tonnes, an increase of 15 per cent. Export value was approximately $720.5 million, up 14 per cent from the same period last year.

BIDC also noted that market activities slowed in June, with production, domestic consumption and exports all declining slightly from the previous month, although remaining above levels recorded in June 2025.

The trend suggests that market demand has not weakened remarkably, but future growth is becoming increasingly dependent on public investment and exports.

During the remainder of the year, the cement industry's outlook will hinge on the pace of infrastructure investment disbursement, the recovery of the property market and developments in international freight costs.

VIR