Foreign investors bought 15.5 million shares in the Viglacera Corporation (VGC) out of a total of 30 million that were floated on July 28, according to the Hanoi Stock Exchange (HNX).

VGC, a construction materials company in which the Ministry of Construction (MoC) holds 91.49 per cent, auctioned 11.34 per cent of its shares and brought in VND418 billion ($19 million).

Purchases for 82.33 million shares were registered, or 2.7-fold higher than the amount on offer, by 178 investors, including 19 institutions and 159 individuals.

The highest bid was VND14,300 ($0.65) per share.

Five investors successfully bought all of the shares on offer, with foreign investors buying 15.5 million, or 52 per cent. The average bid price was VND13,923 ($0.63) against an initial price of VND11,700 ($0.53).

VGC recorded impressive business results in the first half of 2016, a July 4 meeting heard.

The pre-tax profit of VGC and its subsidiaries reached 129 per cent of the target and was up 53 per cent compared to the same period last year.

VGC itself reported pre-tax profit VND87 billion ($3.95 million) higher year-on-year and 43 per cent higher than the target and representing 55 per cent of the corporation’s total.

VGC’s revenue increased 19 per cent compared to the target for the first half, which company directors described as impressive given the fierce competition.

Despite being known for products such as sanitary ware, ceramic and granite tiles, terracotta, and non-fired materials, “glass is the most promising product of VGC in the current market circumstances,” CEO Nguyen Anh Tuan told VCG’s shareholders meeting in April.

“With the current trend of real estate projects using box glass or at least double glazing along with the future trend of using ultra clear float glass and low-e glass, we believe the demand for glass products in general will rise significantly in the near term,” Mr. Tuan added.

Glass products like low-emitting, or low-e glass, have become a trend in other countries and not just Vietnam.

Moreover, the number of glass and brick buildings has been increasing in recent years.

“Low-e glass, ultra clear float glass and solar power glass are currently seeing buoyant demand around the world,” Mr. Tuan said.

“Exports are therefore the top priority with VGC’s ultra clear float glass.”

“Even though revenue from glass products only stood at VND150 billion ($6.8 million) out of total revenue of VND1 trillion ($45.5 million) in 2015, that was only the paper figure,” he explained.

“VGC’s real profit from glass products last year was some VND200 billion ($9.1 million), representing a 20 per cent profit margin.”

In 2015 the Prime Minister approved the construction of two VGC glass factory projects.

The factory in southern Binh Duong province, with a capacity of 2.3 million sq m per year, has begun operations while the factory in northern Bac Ninh province, with a capacity of 2.7 million sq m per year, is still under construction.

Early this year the construction a low-e glass factory with an annual capacity of 2.3 million sq m began in Binh Duong province and operations are expected to begin in the third quarter. VGC will also be cooperating with the Urban and Industrial Zone Development Investment Corporation (IDICO) and a foreign partner to invest in an ultra clear float glass factory with a daily capacity of 600 tonnes in southern Ba Ria Vung Tau province.

Foreign investors are also paying close attention to the glass market. According to VGC research, Chinese investors have been looking to build a glass factory in northern Bac Giang province.

“This clearly illustrates the current trends,” Mr. Tuan said.