Vietnam's cement and clinker exports have all dropped to a record

Specifically, export volume in the first quarter of 2023 decreased by 25% over the same period, reaching only 8.1 million tons with a turnover of 345 million USD, down 24.6% (equivalent to a decrease of over 100 million USD).

Notably, cement exports to China continued to be gloomy because the real estate market had not recovered. Export of this item to China in the first quarter of 2023 only reached nearly 11.4 million USD, down 95% over the same period.

Cement and clinker exports in 2023 are forecast to continue to face difficulties when the construction demand of the main market, China, remains quiet. Although China has reopened, the real estate market of this country has not prospered, leading to Vietnam's cement and clinker exports still facing difficulties. Meanwhile, Vietnam's second largest export market, the Philippines, has recently announced the imposition of a temporary anti-dumping tax on Vietnamese cement.

Before this difficulty, a series of enterprises with big names in the industry such as Phuc Son Cement, Long Son Cement, Ha Long Vicem, Thang Long Cement, Vissai Ninh Binh, Vicem Tam Diep, Vicem Hai Phong... are all subject to tax. temporary devaluation. Notably, some commercial enterprises are also subject to high taxes of up to 23%.

In addition, the increase in export tax on clinker products from 5% to 10% from January 1, 2023 is also causing domestic cement enterprises to suffer because the selling price is not enough to cover production costs and taxes.

According to a representative of the Vietnam Cement Association, in the context that the export clinker price does not increase, businesses also have to bear additional tax costs, which will reduce competitiveness.

In 2023, cement businesses are forecasted to continue to face many difficulties in terms of markets, both domestic and export. Currently, the three main export markets of Vietnam's cement are the Philippines, the US and Hong Kong (China). With clinker, the main markets will be China, Bangladesh, Philippines.

Data from the Department of Building Materials (Ministry of Construction) shows that the demand for the whole cement industry in 2023 is expected to reach about 100-105 million tons (expected to increase 7-10% compared to 2022). In which, domestic consumption is about 60-65 million tons and export is about 35-40 million tons.

The Ministry of Construction recommends that Cement companies need to grasp developments in the world cement market to promptly adjust production activities, increase or decrease supply to keep prices stable.

Especially cement enterprises must have a long-term strategy on production and business activities. The State will also have appropriate policies to adjust the selling prices of key commodities such as electricity, coal, gasoline, oil as raw materials and input materials of the cement industry...

Source: Vietcemworld | A Member of HASACONS VIET NAM