United States on Vietnamese cement exports have raised concerns among Philippine cement manufacturers. They believe that this move could lead to more cement flowing into the Philippine market, thus putting more pressure on the local cement industry.
At a public hearing held by the Philippine Tariff Commission to discuss whether a final safeguard tariff should be imposed on cement imports. The President of the Philippine Cement Manufacturers Association, John Leinier Dizong (John Reinier Dizon), said that higher retaliatory tariffs imposed by the United States on Vietnamese exports could further aggravate the problem of cement oversupply in the region.
Previously, the United States had announced a 46% tariff on Vietnamese exports, but reduced the tariff rate to 10% for most countries during the 90-day moratorium. Although the United States has suspended the implementation of higher tariffs, Dizon said that this is still a major concern for the cement industry.
If the 46% retaliatory tariff is eventually implemented, it could have a significant impact on Vietnam's cement industry and its ability to export to the U.S. market. "This will further exacerbate the problem of excess cement in the Asian region," Di Zong noted.
He mentioned that although Vietnam has been expanding its cement production capacity, demand in China, its main export market, has been sluggish. In addition, the cement industry is also facing challenges in terms of capacity utilization. Although the local cement industry in the Philippines has a capacity of 51 million tons, domestic cement manufacturers produce only 27 million tons, with a capacity utilization rate of 53%
, Dizong said. He stressed that the main reason for such low capacity utilization was the large amount of cement imports flowing into the Philippines.
He also mentioned that the Philippines has now become the third largest importer of cement in the world. "Many countries are facing similar situations, but we have to help ourselves first," he urged. Let us make full use of our own production capacity to improve the situation at home.