Vietnam government urged to reduce export duty

Vietnam’s Ministry of Planning and Investment has proposed the government to reduce export duty on cement to help domestic cement producers to promote exports.

According to the government’s Decree No 100/2016/ND-CP, exported cement products are not eligible to enjoy input value-added tax (VAT).

Furthermore, the product is subject to a five per cent export tax, which has lifted export costs to US$4.50/t clinker and US$7.50/t of cement (based on average FOB prices of US$30 and US$50, respectively. This puts Vietnamese cement producers at a competitive disadvantage with rivals from China, Thailand, Indonesia and Japan, said the ministry.