Viglacera Targets USD 555 Million in Revenue for 2025 Amid Cost Pressures and Strategic Shift

Targets USD 555 Million in Revenue for 2025

Vietnam: Vietnam’s leading building materials producer, Viglacera, has set a 2025 revenue target of VND14.44 trillion (USD 555.12 million), marking a 21% increase from last year. Pre-tax profit is projected to reach VND1.74 trillion (USD 66.89 million), reflecting a more modest growth of nearly 7%. These goals were approved at the company’s AGM held in Hanoi. CEO Nguyen Anh Tuan attributed the tempered profit outlook to rising industrial park development costs, primarily due to surging sand and steel prices, alongside weakening foreign investor interest resulting from U.S. reciprocal tariffs. Site levelling costs have increased from VND200,000 (USD 7.69) to VND300,000 (USD 11.53) per cubic meter. However, the company sees encouraging signs in the housing segment, supported by Vietnam’s Resolution 171 and Resolution 201, which ease restrictions and introduce pilot policies to promote commercial and social housing development.

In response to these developments, Viglacera has revised its 2025 business strategy to place greater emphasis on housing and building materials production, while continuing to develop cost-advantaged industrial park projects like Song Cong II in Thai Nguyen and Doc Da Trang in Khanh Hoa, which benefit from natural leveling conditions and lower costs. Despite these efforts, revenue from industrial park land rentals—Viglacera’s main profit driver—is expected to decline by around VND400 billion (USD 15.38 million) in 2025. To offset this, the company plans to increase revenue from the building materials segment, although CEO Tuan noted that its profit contribution remains lower. The firm is also undertaking restructuring efforts in this segment to improve margins after a challenging 2024.

Source: The Investor