Vietnam’s Ministry of Planning and Investment (MPI) has proposed the export tariff be reduced to aid cement exports from the country.

Domestic cement manufacturers have been struggling to export cement to ease the domestic oversupply. However, with the changes in tax policies, the clinker export cost has increased to US$4.5/t and the cement export cost US$7.5/t. This puts Vietnamese cement producers at a competitive disadvantage with rivals from China, Thailand, Indonesia and Japan, industry sources state.

Local press reported yesterday that the MPI has now proposed the export tariff be eased and allow cement manufacturers to deduct input VAT to facilitate further trade.

More than any other country in the region, Vietnam’s cement industry is export-focussed with shipments reaching around 20Mt in 2014 before falling back to a still-considerable 16.2Mt in 2015 and 17.5Mt in 2016.