Vietnam: cement exports hit by rising tax costs

Vietnamese cement exporters have warned that the loss of tax exemptions and the existing export tax have pushed up the cost of their products on international markets, harming their ability to compete, Vietnam News reports.

An export tax of US$5/t and a 2016 change to VAT rules have meant that the average cost of a tonne of exported cement has increased by US$7.50, while a tonne of clinker is now US$4.50 more expensive.

“Many cement producers could face risks of halting their production or bankruptcy if the Government does not create timely solutions to unknot these difficulties,” said Nguyễn Quang Cung, chairman of Vietnam Cement Association.

Vietnamese exports fell by 5.9 per cent in 2016, in part as a result of the higher costs, Mr Cung maintained.

“Vietnamese cement has been under pressure both in terms of price and supply in comparison with China, Thailand, Indonesia and Japan in the region,” added Trần Việt Thắng, general director of the Vietnam Cement Industry Corporation (VICEM).