HCMC – Vietnam is considering reducing the export duty on cement clinker, currently at 10%, to support struggling producers, reported the Government news site (baochinhphu.vn).
Prime Minister Pham Minh Chinh has instructed the Ministry of Finance to review a proposal by the Ministry of Construction to lower the clinker export duty, with a decision expected by February 25.
The Construction Ministry has warned that cement manufacturers are facing financial losses and potential shutdowns due to weak demand and declining profitability.
While Vietnam’s cement plants have a combined annual production capacity of 122.34 million tons across 92 production lines, total consumption in 2024 reached only 95 million tons, a marginal 1% increase from the previous year.
Domestic sales grew 3% to 65.3 million tons, but exports declined 5% to 29.7 million tons, with export revenue dropping 14.2% to US$1.14 billion.
Cement plants are operating at just 77% capacity on average, and 34 production lines have been idled for up to six months, with some shut down for a year.
The Government has instructed ministries and provincial authorities to implement measures to support cement and steel producers, following Directive No. 28 issued on August 26, 2024.
The Ministry of Construction is also collaborating with Ha Nam Province officials to review mineral resource planning for construction materials through 2050, aiming to resolve regulatory overlaps and streamline project approvals.
