Reduce cement clinker export tax to support businesses

The Government has just issued Decree No. 108/2025/ND-CP dated May 19, 2025 amending and supplementing Decree No. 26/2023/ND-CP dated May 31, 2023 on Export Tariff Schedule, Preferential Import Tariff Schedule, List of Goods and Absolute Tax Rates, Mixed Tax, and Import Tax Rates Outside Tariff Quotas. Decree No. 108/2025/ND-CP takes effect from the date of signing (May 19, 2025).

Decree No. 108/2025/ND-CP amends the export tax rate for cement clinker products specified in Appendix I - Export tax schedule according to the List of taxable products issued with Decree No. 26/2023/ND-CP.

Specifically, from May 19, 2025, the export tax rate on cement clinker will be reduced from 10% to 5%. From January 1, 2027, the tax rate of 10% will apply.

According to the Ministry of Construction 's report, currently, the total number of cement production lines invested nationwide is 92, with a total capacity of 122.34 million tons/year. In 2024, the total output of cement and clinker consumed is about 95 million tons, an increase of about 1% compared to 2023; of which, domestic cement consumption is about 65.3 million tons, an increase of about 3% compared to 2023; exports reach about 29.7 million tons, a decrease of about 5% in volume compared to the same period in 2023, the export value is estimated at 1.136 billion USD, a decrease of 14.2% in value compared to 2023.

Currently, cement production lines are operating at an average of only 77% of their total designed capacity. There are 34 lines that have had to stop production for 1 to 6 months, some of which have had to stop for a whole year, many cement production enterprises are losing money...

The Ministry of Finance said that clinker and cement products belong to group 25.23 in the List of Vietnam's import and export goods, with a total export turnover of 1.14 billion USD in 2024. Of which, clinker products belong to 2 codes 2523.10.10 and 2523.10.90 with an export tax rate of 10% in the Export Tax Schedule issued with Decree No. 26/2023/ND-CP, with an export turnover of 301.4 million USD in 2024.

Reducing the export tax rate for cement clinker from 10% to 5% until the end of 2026 will help cement clinker manufacturing enterprises have more than 1 year to adjust their production and business plans and handle inventories. From January 1, 2027, the export tax rate of 10% will apply.

Consumption demand recovers, many cement enterprises are still in losses

In the first quarter of 2025, many enterprises in the cement industry recorded an increase in net revenue, but still reported a net loss of tens of billions of dong.

Bim Son Cement Joint Stock Company (stock code BCC) recorded VND771 billion in net revenue in the first quarter of the year, up nearly 12% over the same period last year, but the company recorded a loss of more than VND60 billion (higher than the loss of VND49 billion in the same period last year). This brought the company's accumulated loss to more than VND262 billion.

Similarly, Vicem But Son Cement Joint Stock Company (HNX: BTS) had revenue of nearly VND614 billion, up more than 19% over the same period, but after-tax profit also lost VND28.5 billion, a significant decrease compared to the loss of nearly VND56 billion in the same period last year. This is also the 10th consecutive quarter of loss for this enterprise, with an accumulated loss of more than VND320 billion.

According to the business performance report for the first quarter of 2025, Vicem Ha Tien Cement Joint Stock Company (Stock code: HT1) recorded a net revenue increase of 6.2% over the same period last year, to over VND 1,586.8 billion. Revenue from financial activities was over VND 3.5 billion, 6.3 times higher than the same period. However, business management expenses increased by 6.2%, to over VND 70.3 billion; the remaining sales expenses and financial expenses also increased slightly over the same period. As a result, the company reported a net loss of nearly VND 9.2 billion, an improvement of 62.8% over the same period last year.

Vicem Hai Van Cement Joint Stock Company (stock code HVX) had revenue of nearly VND 85 billion in the period, up 55% compared to the first quarter of 2024, but still suffered a loss of nearly VND 14 billion (in the first quarter of 2024, it lost more than VND 20 billion).

In addition, other enterprises also recorded losses in the first quarter of the year such as Phu Tho Cement Joint Stock Company; Sai Son Cement Joint Stock Company; Quan Trieu Cement Joint Stock Company... Cement enterprises in general have had many consecutive quarters of losses.

According to the explanation of the enterprise, the cement industry is still in difficulty because supply far exceeds demand, the price of raw materials is high and there is fierce competition from cheap imported goods. One of the factors affecting business results is that enterprises do not produce and consume clinker due to lack of market demand, high production costs and logistics disadvantages.

However, the company also believes that in 2025, the cement industry will have many positive signs, with investment in infrastructure construction, transportation, irrigation and the real estate market showing signs of positive recovery. However, the business results in the first quarter of the year are still not very positive, partly due to the increase in total costs, which are mainly concentrated in business management costs.

In addition, in the context of public investment being strongly promoted by the Government, especially investment in transport infrastructure, construction...; with the plan to disburse public investment capital in 2025 expected to reach 790,000 billion VND, an increase of 17% compared to 2024, the production and consumption of cement products are forecasted to be more positive in the second half of 2025.

Source: https://baodaknong.vn/giam-thue-xuat-khau-clinker-xi-mang-de-ho-tro-doanh-nghiep-253178.html