Local cement manufacturers warned that the continuing rise in cement imports from Vietnam at dumped prices puts at risk the domestic industry and adversely impacts the country’s economic recovery.
This was stressed by Cement Manufacturers Association of the Philippines (CeMAP), the petitioner for anti-dumping measure case against certain cement importations from Vietnam. CeMAP member firms include Holcim Philippines, RCBM, Apo Cement, Solid Cement. Non-CeMAP cement producers Eagle Cement Corporation and Northern Cement Corporation support the anti-dumping application.
The Tariff Commission is conducting formal Investigation on the Imposition of Anti-Dumping Duty against importations of Ordinary Portland Cement Type 1 and Blended Cement Type 1P from Vietnam.
According to the petitioner, Vietnam has consistently been the top exporter of cement to the Philippines
As of 2021, Vietnam accounts for approximately 91 percent of imports to the country in terms of volume and value, growing from 61 percent in 2017 and from almost nil in 2013.
The increase in VN imports is growing faster than the year on year growth of the Philippine cement market.
As a result, CeMAP said that the continued influx of cement imports, particularly from Vietnam, has resulted in loss of sales volumes on the part of the domestic cement manufacturing industry.The petitioner and supporters advocate fair competition in the domestic cement industry.
The group said that dumping undermines the domestic cement manufacturing industry’s capability to contribute to and catalyze inclusive growth.
CeMAP even quoted data from the FiinResearch, one of the leading independent market research firms in Vietnam, showing that Vietnam has an installed capacity of 120 million tons per annum of cement, of which 50 percent served domestic demand annually from 2019 to 2021 while the remaining 50 percent is geared for exports.
CeMAP also stressed the importance of a viable domestic cement industry that can meet the country’s needs is a matter of national interest
The petitioner added cement is a strategic industry and critical input to the government’s “Build, Build, Build” infrastructure program and building decent homes for ordinary Filipinos.
Hence, dumping practice threatens the Philippines’ economic security. Without dumping, the consumer will benefit from a secure and stable local source of cement that would not be subject to the variables of world demand.
Cement manufacturing is one of the few sectors that can become import-independent, as new capacity is being set in place, given the country’s vast reserve of raw materials. (i.e. limestone lasting-1,000 yrs. at the current consumption rate).
But the unfair act of dumping not only retards the growth of the domestic industry but undermines the industry’s capability to contribute to and catalyze inclusive growth, CeMAP said.
