HCMC – Vietnam has reduced the export duty on cement clinker from 10% to 5%, effective from May 19, 2025, helping ease pressure on domestic producers.
The tax cut was introduced under Decree 108/2025/ND-CP, which amends Decree 26/2023 on export and import tariff schedules, including fixed, mixed, and out-of-quota rates. The revised regulation was issued by the Government and took effect immediately upon announcement.
The rate will return to 10% starting January 1, 2027, reported the Vietnam News Agency.
The Ministry of Construction said the temporary tax reduction will give clinker producers over a year to adjust business strategies and clear inventory amid challenging market conditions.
Vietnam currently has 92 cement production lines with a total annual capacity of 122.34 million tons. In 2024, total cement and clinker consumption reached around 95 million tons, up about 1% from 2023.
Of the total, domestic consumption accounted for approximately 65.3 million tons, a 3% year-on-year increase. Meanwhile, exports fell by 5% in volume to 29.7 million tons and dropped 14.2% in value to an estimated US$1.14 billion.
Despite strong installed capacity, cement plants are only running at about 77% of design capacity. Around 34 production lines have been temporarily suspended for periods ranging from one to six months, with some remaining idle for an entire year. Several companies are also operating at a loss.
