HÀ NỘI — In a move aimed at easing pressure on domestic cement producers, the Vietnamese Government reduced the export duty on cement clinker from 10 per cent to 5 per cent, effective from May 19.

The reduced duty will remain in effect through December 31, 2026, after which the rate will return to 10 per cent starting January 1, 2027.

The Ministry of Construction said that the tax reduction provides cement clinker producers with over a year to adjust their business strategies and address inventory backlogs, amid weak market demand and rising production costs.

Việt Nam currently operates 92 cement production lines with a combined annual capacity of 122.34 million tonnes. In 2024, total cement and clinker consumption reached approximately 95 million tonnes, a modest one per cent increase from 2023.

Of that total, domestic consumption accounted for about 65.3 million tonnes, marking a 3 per cent year-on-year increase. Meanwhile, exports declined by 5 per cent in volume to 29.7 million tonnes, and fell 14.2 per cent in value to roughly US$1.14 billion.

Despite strong installed capacity, plants are currently operating at just 77 per cent of their design capacity. An estimated 34 production lines have been temporarily shut down, with some remaining idle for up to a year. Several manufacturers are reporting sustained financial losses. — BIZHUB/VNS