Viglacera (VGC): Monthly Meeting in November 2023 and Preparation for 2024 Business Plan

On December 4, 2023, Viglacera Corporation (HoSE: VGC) held a meeting to evaluate the production and business results for November and to deploy the plan for December 2023, as well as to prepare the 2024 business plan. In the context of unfavorable market conditions that have lasted for more than a year, Viglacera’s production and business results have accurately reflected the spirit of proactive anticipation of developments, and the implementation of strategic solutions, contributing to ensuring safe and healthy production and business results.
A panoramic view of the meeting at Viglacera Corporation

Specifically, in November, the parent company’s profit met the plan and reached 101% of the monthly plan. Accumulated for the first 11 months of the year, the parent company’s profit reached 142% of the annual plan, up 7% from the same period. The consolidated profit of the entire Group is estimated to reach 1,663 billion VND, reaching 137% of the annual plan.

These numbers are not just numbers. Behind the above growth chart, there are a series of efforts in directing and operating and the right development direction.

In the context of general difficulties for most types of conventional building materials, new and differentiated products such as Sintered Stone (Vasta Stone) and Ultra Clear Glass have proven to be timely when the number of projects decreases but the requirements are increasingly high in terms of quality and differentiation. It is worth mentioning that in the context of the real estate and construction market is almost stagnant, the business results of the two new product lines mentioned above show that what meets the strict requirements of the market will always have a firm foothold.

This is also a consistent direction of Viglacera in many years to come, and it has been, is, and will continue to be implemented in the future, contributing to affirming that the “high-tech axis” is the lifeline for Viglacera to overcome the most difficult market periods.

Regarding positive export growth, in the accumulated 11 months, the total export revenue of the entire Corporation reached 42.2 million USD, achieving 154% of the same period last year. This growth is particularly evident in products such as Tiles (+126%), PFG Glass (+79%), ViFG Glass (+16%), and Sanitaryware (+68%). Viglacera’s products consistently meet quality standards and international certifications, and the focus on export involves providing even more perfect and convenient services for partners and customers to meet the export target for 2024, continuing the outstanding growth.

In the real estate sector, industrial parks remain a significant highlight. Business results, along with dividends from subsidiaries and affiliated companies, contribute significantly to the total revenue and profit of the Corporation. This success is attributed to the persistence and consistency in the investment approach to building a perfect ecosystem for industrial park services, worker housing, cultural design, etc. Key points include improving service quality, professional operation, enhancing amenities in industrial park projects, which are crucial for attracting new investors in the future.

With 12 industrial parks currently owned and operated, covering a total area of over 4000 hectares, Viglacera solidifies its position by attracting 300 domestic and international businesses with over 16 billion USD in FDI, including major global corporations such as Samsung, Amkor, Canon, Hyosung, Anam Electronics, IRC Tire, Toyoda Gosei, etc.

In the flow of Viglacera’s activities, every business operation is closely tied to social responsibility. Viglacera’s board of directors is actively considering the implementation of worker housing projects to meet the needs of laborers. Numerous projects are ready and waiting for the market conditions to initiate. Recently, new resolutions from the National Assembly amending the Housing Law and Real Estate Business Law have been passed, removing legal barriers for investors and beneficiaries of social housing policies, addressing the stagnation in this particular market. At present, Viglacera has comprehensively planned a major investment initiative to build 50,000 social housing units from 2022 to 2030 through specific projects such as worker housing projects in Dong Van IV Industrial Park, social housing projects in Kim Chung, worker housing project in Hai Yen – Quang Ninh, or by participating in bidding for new projects in Bac Ninh, Phu Tho, and Hanoi.

Regarding the business direction for the last month and the plan for 2024, enhancing managerial depth, the urgent requirement at this time is to accelerate the digital transformation, integrating ERP into enterprise management and production control to ensure long-term stability and development for the entire system. In the operation of business production, the company continues to adhere to a proactive, flexible, closely aligned, and market-oriented business direction.

Viglacera Ultra Clear Glass

The field of construction materials is expected to continue facing challenges in the short term, as the market has not shown many signs of improvement. The most appropriate solution at this time is to proactively implement measures to maintain business efficiency, such as closely monitoring and timely evaluating market developments. This includes adjusting product types and quantities, regulating production output according to market demand, reducing production costs, minimizing inventory, intensifying sales efforts, and focusing on a robust restructuring of both products and company management activities.

In parallel, Viglacera continues to research and develop new environmentally friendly products, helping consumers optimize energy usage costs. The focus will be on products with a high content of gray materials and investment in market development, specifically Energy-saving glass, Ultra Clear Glass, AAC blocks, Sintered Stone, etc.

For the real estate sector, Viglacera will focus on the construction of technical infrastructure at industrial zone projects: Thuan Thanh I, Tien Hai, Phong Dien, Phu Ha, Hai Yen, to attract businesses from both domestic and international markets. In 2023, Viglacera aims to record approximately 218 hectares of business area for technical infrastructure of industrial zones, continuing to play a major role in the overall revenue of the Corporation.

Currently, the entire real estate business sector of Viglacera is collectively reviewing ongoing projects, establishing detailed schedules for land clearance, construction, production confirmation, investment settlement, planning, and preparing cash flows for projects up to the Lunar New Year.

The progress of land clearance at industrial zone and housing projects is under control. All projects are being implemented with a focus on comprehensive investment in technical infrastructure and services at projects to attract investors domestically and internationally.

With positive business results in November and the cumulative 11 months of the year, Viglacera has exceeded the annual profit plan. In the last month of the year, the Corporation will continue to implement appropriate solutions to maintain growth momentum, ensure the completion of the 2023 business plan, and lay the foundation for building the 2024 production and business plan in line with the real market conditions.