What's Happening?
The Ministry of Construction in Vietnam has announced a delay in its plans to divest state capital from Viglacera, a leading construction material producer and industrial real estate developer. This decision was made due to challenges in accurately valuing
the company, which has seen rapid growth and an expanding asset base. Deputy Minister Nguyen Van Sinh stated that the divestment will be reconsidered during the 2026-2030 period. The state currently holds about 38% of Viglacera, and the divestment was initially planned for 2024-2025. The company is also involved in projects in Cuba, where economic volatility complicates valuation. Viglacera has sought guidance from the Ministry of Finance on valuation methods, but no clear framework has been issued yet.
Why It's Important?
The delay in divestment is significant as it reflects the complexities involved in managing state assets in rapidly growing companies. For Viglacera, maintaining stability and growth is a priority, and the postponement allows the company to continue its strategic role both domestically and internationally. This decision impacts stakeholders, including investors and the Vietnamese government, as it seeks to safeguard state assets while navigating economic uncertainties. The delay also highlights the challenges faced by state-owned enterprises in transitioning to more privatized models, which can affect market dynamics and investor confidence.
What's Next?
The Ministry of Construction has proposed deferring the divestment plan until conditions are more favorable. This means that Viglacera will continue to operate under its current structure for the foreseeable future. The company aims to achieve a 2026 revenue target of VND15.3 trillion and a pre-tax profit of VND1.82 trillion. Shareholders have approved these targets along with a 22% cash dividend for 2025. The company will also focus on expanding its industrial park portfolio and maintaining its growth trajectory.
