Cement makers worried over dumped imports from Vietnam

MANILA, Philippines — Local cement manufacturers have raised concerns on the continued dumping of cement imports from Vietnam despite the imposition of safeguard measures.

“With a huge surplus and lower domestic demand, we would likely see a more aggressive effort from Vietnam exporters to flood the Philippine domestic market with imported cement,” Cement Manufacturers Association of the Philippines (CeMAP) Inc. executive director Cirilo Pestaño II said in a statement yesterday.

While a general safeguard duty amounting to P9.80 is currently imposed per 40-kilogram bag of imported cement, CeMAP said imports continue to grow.

The group said Vietnam’s cement exports reached 14.9 million tons in the January to April period, up 42 percent compared to the same period last year.

Of this figure, 2.51 million tons were shipped to the Philippines, up 17 percent from last year, making the country the second largest destination for Vietnam’s cement exports.

“Imports benefit mostly the foreign manufacturers. Their exports generate jobs in their home country, not here in the Philippines where many of our people have already lost their jobs. We must support and protect local industries—whenever necessary—if we want to recover from this pandemic,” Pestaño said.

Last year, the majority of the domestic cement manufacturing industry had to temporarily halt operations of plants amid the pandemic.

As the pandemic curbed construction activities, the group said the industry also saw demand drop by as much as 10 percent last year.

“Unless stopped, the continuing increase in the volume of imported cement would cause injury not just to the local industry but also to the economy, in general,” Pestaño said.

The local cement industry directly employs 42,000 workers with an additional 125,000 jobs contributed throughout the value chain.

The group said the cement manufacturing industry is also estimated to contribute P155 billion or close to one percent of gross domestic product and these figures are projected to double by 2030 with the sector seen to employ 400,000 workers.

In addition, it said the industry pays about P24 billion in corporate and individual income taxes to the government.

CeMAP ealier called on consumers, developers and the construction sector to purchase locally produced cement to support domestic manufacturers.

“The integrity of the structures being built and the safety of the people using the same should be of paramount concern. There should be no compromise on this matter. The products of CeMAP’s members conform with the rigorous government standards on safety and quality,” Pestaño said.

The Departmentvof Trade and Industry (DTI) is conducting a probe on the possible imposition of anti-dumping duty on cement imports from Vietnam based on applications from Cemex Philippines, Holcim Philippines Inc. and Republic Cement Builders and Building Materials Inc.

Dumping happens when an exporter’s products are sold at prices lower than the normal value in its home country.