Vietnam lowered its export tax on clinker from 10 to five per cent to reduce costs for local producers and improve the competitiveness of the country’s cement producers in the global market.
However, cement producers and traders are cautious, awaiting the effects of the measure on demand and kiln operations before making significant changes.
A southeast Asian trader was quoted by S&P Global as saying, "Whether this will ignite the Vietnamese kilns remains to be seen. Producers and exporters need to monitor market demand closely before rushing into any major decisions."
“Despite the tax reduction lowering export costs by roughly US$1.80/t, buyers and sellers are holding back, reflecting broader uncertainty in regional markets affected by fluctuating demand and tight import regulations. Overall, while the policy offers potential support to Vietnam's cement sector, immediate market momentum has yet to materialise as stakeholders weigh the longer-term implications,” said S&P Global.
The tax cut, effective from 19 May, is seen as a temporary measure until the rate returns to 10 per cent in January 2027.
