Displaying items by tag: Vietnam Cement Association

US: The government has imposed a 20% import tax on cement from Vietnam, effective from 1 August 2025, doubling the previous 10% rate, according to the Vietnam Cement Association. It said that the move would have a significant impact on cement exporters, as Vietnam is the second largest cement supplier to the US, after Türkiye. It also said that the higher tariffs would now lead to costs being passed on to consumers, with increasing cement prices in the US expected.

Vietnam: Vietnam's cement sector anticipates minimal impact from the EU's carbon border adjustment mechanism (CBAM) as exports to the EU account for less than 2% of total sales, according to the Vietnam News Brief Service. However, Luong Duc Long, vice president and general secretary of the Vietnam Cement Association, remains alert to potential changes in emission thresholds that could incur additional taxes. Currently, the country’s cement sector emits 700 - 750kg/t of CO₂, with goals to reduce this to 650kg/t by 2030 and to 550kg/t by 2050 through technological advancements like rotary kilns and AI, as well as the use of alternative fuels and waste management solutions.

Taiwan: Taiwan will initiate an anti-dumping investigation into cement and clinker imports from Vietnam in August 2024, according to the Trade Remedies Authority of Vietnam (TRAV) under the Ministry of Industry and Trade. The TRAV has advised the Vietnam Cement Association to inform its members and coordinate with Taiwanese importers for market monitoring, reports the Vietnam News Brief Service. Companies must provide export data from 2021 to mid-2024 by 12 August 2024.

Vietnamese cement and clinker exports have seen a decline in recent years. In 2023, exports fell to 31.3Mt, valued at US$1.32bn, down by 1.2% year-on-year. From January to July 2024, exports decreased further to 18.3Mt, worth US$705m, a decline of 1% compared to the same period in 2023. The VNCA forecast continued challenges for cement and clinker exports due to China’s stagnant real estate market and surplus cement production.

Vietnam: The Vietnamese cement industry persists in facing difficulties, with several plants operating at only 70 - 75% capacity and accumulating stockpiles of around 5Mt, according to the Vietnam Investment Review. The total production capacity is over 120Mt/yr, yet four new production lines with a combined 11Mt capacity remain inactive. At a recent conference, strategies were proposed to alleviate industry pressures, including fiscal policy adjustments and abolishing the current clinker export tariff, which currently sits at 10%. It was revealed that many cement producers are struggling due to borrowing, soaring production costs and slow consumption.

Chair of the Vietnam Cement Association Nguyen Quang Cung said "Never before has the cement industry been at such a critical stage. If the current predicament drags on, the possibility of domestic ownership transferring to foreign investors might occur, posing the threat of the cement sector falling into the hands of foreign businesses, thereby reducing the country's ability to deal with pricing and market moderation in the long term."

Vietnam: Export prices for clinker and cement in Vietnam have dropped significantly in May 2024, impacting the construction industry and raising concerns among exporters. This decline is due to decreased international demand, intense competition, and evolving trade policies, according to the Vietnam News Brief Service. The Ministry of Construction noted that after a decade of growth, export volumes have fallen sharply since 2022, with exports dropping to 10.9Mt in 2023 from 15.2Mt the previous year. Only 5.4Mt is expected to be exported in the first half of 2024.

The Vietnam Cement Association (VNCA) has highlighted ongoing challenges, particularly influenced by the downturn in China’s real estate market and competitive pressures from Chinese cement surpluses. The VNCA has urged Vietnamese exporters to explore new markets, improve product quality and increase production efficiency. Additionally, the VNCA recommends that the government consider eliminating export taxes on clinker to mitigate these challenges.

Vietnam: The Vietnam Cement Association (VNCA) has urged the government to address the cement industry's challenges, following a continuous decline in sales since 2022. Despite having 61 cement plants with a combined capacity of 117Mt/yr, the industry recorded sales of only 87.8Mt/yr in 2023, marking a 16% year-on-year fall in domestic consumption to 56.6Mt and a 1% decline in exports to 31.2Mt. The downturn in both domestic and export markets has resulted in excess inventory, leading many plants to reduce capacity or halt operations, with some facing bankruptcy or the risk of foreign acquisition.

Several factors have contributed to the industry's difficulties, including reduced domestic demand due to reliance on traditional construction techniques in major infrastructure projects, a stagnant real estate market, escalating fuel costs, and increased export taxes on clinker. To combat these issues, VNCA proposes promoting concrete use in high-speed infrastructure projects, especially in the Central region and the Mekong Delta. It also advocates maintaining or eliminating export taxes on clinker for the next two years and providing VAT exemptions. Additionally, VNCA calls for financial support, requesting banks to offer debt relief and reduced interest rates to cement companies. The association also advises against further foreign investment in Vietnam's cement sector.

Vietnam: In the first quarter of 2024, Vietnam's cement and clinker exports maintained a volume of 7.9Mt but represented a 11.7% year-on-year decrease in value to US$298m, according to the General Statistics Office.

The value decrease is reportedly attributed to China's sluggish real estate market and anti-dumping duties imposed by the Philippines. Export prices also declined slightly, with the average price in 2023 dropping by 3% year-on-year. The Vietnam Cement Association anticipates further challenges for these exports in 2024, facing increased competition from the Philippines, Central America and South Africa. Domestic production is expected to exceed demand, with consumption estimated at 60-62Mt, prompting intensified export efforts to manage an excess production of around 30Mt.

Vietnam: The Vietnam Cement Association (VCA) has urged the government to stop issuing licences for the construction of new cement plants. Capacity is currently projected to reach 121Mt/yr in 2023, 188% of an estimated consumption of 64.3Mt domestically this year.

VCA chair Nguyen Quang Cung said “We must be careful to maintain a balance between regional supply and demand. As a result of the severe overstock in the north, it is crucial to encourage cement producers in the south to spend more on increasing clinker production capacity." Cung added "This will minimise the environmental effects of shipping clinker between the north and south.”

Vietnam: The Vietnam National Cement Association (VNCA) has reported a 27% year-on-year rise in cement and clinker exports to 21.0Mt in the first half of 2021. The Viet Nam News newspaper has reported that the value of cement exports rose by 32% to US$812m. The growth was attributed to China’s environmental policies and the promotion of clinker imports.

Philippines: The Department of Trade and Industry (DTI) has launched a new investigation into imports of cement, currently subject to safeguarding tariffs of US$0.20/bag. The investigation follows a request by Cemex Philippines, Holcim Philippines and Republic Cement. The Viet Nam News newspaper has reported that the Vietnam National Cement Association has asked the DTI and the Philippine cement industry to consider whether imports from Vietnam did real damage. In 2020, Vietnam’s export cement prices fell by 15% year-on-year. Its excess production of cement was 36Mt during the year, and its clinker prices were 20% below the regional average.