Vietnam cement exports drop 10.8% in 1H24

Between 2019 and 2022, the average export value of cement and clinker ranged from US$1bn to US$1.3bn annually. However, in 2023, export earnings sharply declined due to falling prices. The average Free On Board (FOB) price of clinker fell to US$31-32/t in May 2024, a notable decrease from US$46-48/t  in 2022.

The country’s Ministry of Construction (MoC) cited an increase in the tax on clinker exports, from five to 10 per cent as of 1 January 2023, as a key factor making Vietnamese clinker less competitive. Furthermore, anti-dumping duties imposed by the Philippines in March 2023 further complicated Vietnam’s export market.

In response, the ministry proposed reducing the export tax on clinker to zero per cent and amending tax laws to allow VAT refunds on clinker products. These strategies aim to improve the competitiveness of Vietnamese clinker, increase sales, and reduce financial pressures on the cement industry.

The current VAT policy for clinker exports does not allow input VAT deductions, exacerbating the industry’s problems. The MoC further stated that, without addressing the country’s tax and VAT issues, Vietnamese clinker will continue losing its competitive advantage by 20 per cent compared to international competitors, damaging export potential.