The Cement Manufacturers Association of the Philippines (CeMAP) has
complained of cement imports from Vietnam flooding the local market
despite excess capacities.
Citing data from Global Cement News, CeMAP said Vietnam has a total
cement production capacity of 120 million tons, as twice the country’s
local demand of 57 million metric tons (MT) in 2023.
CeMAP said Vietnam dumps its excess output to the Philippines as its
domestic demand further declined by 16 percent in 2023, with PH
imports hitting almost the same volume as in 2022.
In recent data collected by CeMAP from the Bureau of Customs (BOC),
the anti-dumping duties imposed beginning March 2023 were only levied
on 20 percent of total cement exports to the Philippines.
As it stands, the Philippine cement industry has a total expected
capacity this 2024 of 53 million tons (MT) while demand is projected
to hover at 34.5 MT for this year.
With the government accounting for an estimated 40 percent of total
cement demand, CeMAP said there is enough locally manufactured cement
to provide for government and private infrastructure projects.
Based on a previous release from CeMAP, local manufacturers continue
investing in additional capacity totaling 13 million tons per annum
(MTPA) over the last five years.
Capacity expansion introduces more innovative cement solutions to
Filipinos, leading to significant reductions in CO2 emissions,
increasing use of low-carbon blended cements, and lessening the
dependency on fossil fuels with the use of alternative fuels across
the industry.
CeMAP emphasized that members continue to invest in their communities
through their social development programs that benefit the development
and competitiveness of the country’s construction industry contrary to
cement importers and traders who merely import and sell.
With the erosion of the domestic cement market by imports, these
investments are put at risk and, along with it, thousands of Filipino
jobs, the group said.
CeMAP highlighted that imports further diminish the country’s
attractiveness for new capital to invest in new and innovative
domestic manufacturing capacities vital industries like cement, as
well as the potential reduction of taxes coming from local
manufacturers.
The group blamed the premature ending of the safeguard measures in
2022 that has led to problematic imports threatening the domestic
cement industry.
CeMAP believes that the safeguards measures should have been extended
given the circumstances.