Viglacera, Vietnam’s top manufacturer of construction materials, revamps its three main business sectors.

In a significant shift for Vietnam’s construction materials sector, Viglacera Corporation (HoSE: VGC) has launched a comprehensive restructuring plan affecting its three primary business areas: sanitary ware, tiles, and real estate. This ambitious initiative was unveiled between August 22 and September 17, showcasing Viglacera’s intention to streamline and enhance operational efficiencies in a competitive market.

On September 17th, Viglacera’s board took a pivotal step by approving a plan to revamp its sanitary ware segment. A new entity, the Viglacera Sanitary Ware Single Member Limited Liability Company (TBVS Company), is being established to serve as the focal point for this segment. This restructuring will involve transferring assets and personnel from two existing branches: Viglacera My Xuan Porcelain and Viglacera Faucet, which will be subsequently phased out.

Strategically, TBVS is set to establish branches and factories at the locations of its predecessors, with operations slated for Ba Ria-Vung Tau in southern Vietnam and Hanoi. This move reflects Viglacera’s commitment to concentrating resources and expertise within a single entity to streamline production and enhance product offerings.

Additionally, Viglacera will transfer its stakes in other subsidiaries, including Viglacera Thanh Tri Porcelain JSC, Viet Tri Viglacera JSC, and Viglacera Trading JSC, to TBVS. This strategic consolidation aims to optimize management and operations concerning machinery and equipment from Viglacera Binh Duong Porcelain, ensuring enhanced efficiency and resource allocation.

The timing of this consolidation is noteworthy, as the sanitary ware segment has shown substantial growth. According to VGC’s consolidated financial statement for the first half of 2025, revenue from porcelain, faucets, and accessories surged by over 50% year-on-year, reaching approximately VND491.5 billion (about $18.63 million).

Earlier in August, Viglacera outlined similar restructuring initiatives for its tile and real estate divisions, displaying a cohesive strategy across its business lines. For the tile segment, the merger of Viglacera Hanoi JSC (VIH) and Viglacera Thang Long JSC (TLT) will result in the formation of Viglacera Tien Son JSC (VIT). This newly formed entity is anticipated to consolidate the entire value chain, streamlining operations from production through to sales within this critical revenue-generating area.

In the realm of real estate, Viglacera has indicated that the ownership structure at Viglacera Consulting JSC and Visaho JSC will remain stable for the time being, with divestment activities planned for a later stage when market conditions are favorable. This indicates a measured approach by Viglacera as it navigates the dynamic landscape of the real estate market.

Concurrently, Viglacera is reorganizing its infrastructure construction units, further emphasizing the company’s commitment to operational efficiency. In the first half of 2025, VGC reported impressive financial results, with nearly VND6.1 trillion ($231.21 million) in net revenue, marking a 13.7% increase from the previous year. A significant contributor to this growth was the industrial land leasing sector, which achieved revenue of VND1.97 trillion ($74.67 million), reflecting a robust 21% rise.

The company’s consolidated post-tax profit also demonstrated remarkable growth, jumping by 105.2% to VND838 billion ($31.76 million) over the same six-month period. These financial gains underscore Viglacera’s strategic movements and operational adjustments, enabling it to thrive even amidst market fluctuations.

As of the close of trading on the Ho Chi Minh Stock Exchange, VGC shares were priced at VND58,500 ($2.22) each, capturing investor interest amid the company’s transformative plans and robust financial outcomes.

With these restructuring efforts, Viglacera is not only positioning itself for sustained growth but is also setting an example for other players in the construction materials industry in Vietnam. The company’s proactive approach reflects a clear vision geared towards enhancing efficiency, boosting competitiveness, and ultimately achieving long-term success in the construction materials market.