Imported cement from Vietnam has been dominating total cement importation in the country and steadily growing over the years as local demand is expected to hit 66 million metric tons (MMT) in 2025, according to data presented by local cement manufacturers.

At the public hearing conducted the Tariff Commission for its formal determination on the merits of imposing a definitive anti-dumping duty against cement importation, the Cement Manufacturers Association of the Philippines (CeMAP) presented data from the Bureau of Customers showing the Vietnamese cement comprised the bulk of total cement importation while importation from the rest of the world continued to shrink.

The data showed that of total 7.107 MMT cement importation in 2021, Vietnam cement accounted for 6.466 MMT while cement from the rest of the world contributed a measly 641,000 MT.

The data also showed a steady rise in cement importation from Vietnam with 4.118 MMT out of total shipments of 5.909 MMT in 2018 to 4.167 MMT in 2019 out of total 6.305 MMT, and further to 5.396 MMT out of total 6.246 MMT in 2020.

CeMAP said that as of 2021, Vietnam cornered 91 percent of total imports to the country in terms of volume and value, growing from 61 percent in 2017 from almost nothing in 2013.

In contrast, cement importation from the rest of the world shrunk from 2.138 MMT in 2019 to 850,000 MT in 2020 and 641,000 MT in 2021. Vietnam cement already accounts for 14-15 percent of total cement importation into the country.

CeMAP said the continued influx of cement imports, particularly from Vietnam, has resulted in loss of sales volume on the part of the Philippine domestic cement manufacturing industry.

Another data presented by CeMAP showed that imports continued to grow despite additional capacities infused by local cement producers.

For instance, CeMAP cited data where local cement manufacturing capacity has been expanding since 2019 with additional capacity of 3.7 MMT to boost its then existing capacity of 30.6 MMT. Industry players further expanded in 2020 with 2 MMT to add to its 27.4 MMT capacities.

Last year, local cement makers added 6.6 MMT to its 28.7 MMT capacities. For the period 2022-2025, CeMAP projected additional capacities of 19.5 MMT.

Sources, however, from the importers side said that anti-dumping duty is not likely to hinder importation of cement because local supply is still tight. “It is either we will import or they (local cement producers) will import,” a source said.

Both imported and locally produced cement are also being retailed at parity rates at P220-P225 per 40-kilogram bag in Metro Manila.

On Dec. 6, 2021, the Department of Trade and Industry imposed a provisional anti-dumping duty against Vietnam cement of an additional P2.01 to P25.08 per 40 kilogram bag.

Anti-dumping duty is exporter/company specific, but a trader said that the importer will shoulder the additional cost, which will then be passed on to the end-consumers.

At present, imported cement from various counties are still slapped with a safeguard duty, which is expiring in November this year. Unlike anti-dumping duty, safeguard duty is country specific.