Export Tax Reduction For Cement Clinker: Government Support For Businesses Until The End Of 2026

This is significant news for Vietnam’s cement industry: the government has just issued an important decision to aid cement enterprises grappling with various hardships. Accordingly, the export tax rate for cement clinker has been sharply reduced from 10% to 5%. This policy will be effective from May 19, 2025, and will extend until the end of 2026, promising a timely “lifeline” for domestic manufacturers.

Details Of The Latest Decree On Cement Clinker Export Tax – A Golden Opportunity Until Late 2026

To concretize this policy, Decree No. 108/2025/ND-CP was issued by the government on May 19, 2025. This decree amends and supplements several articles of Decree No. 26/2023/ND-CP regarding the Export Tariff, Preferential Import Tariff, and related regulations.

• Period of Preferential Application: From May 19, 2025, until December 31, 2026, the export tax rate for cement clinker will be 5%. This is a crucial period for cement clinker manufacturing businesses to adjust their business plans and effectively manage inventory.
• From January 1, 2027: The tax rate will revert to 10%, as previously stipulated.

The immediate effectiveness of Decree 108/2025/ND-CP from its signing date (May 19, 2025) demonstrates the government’s urgency and determination to alleviate difficulties for the industry.

Current Challenges Facing Vietnam’s Cement Industry

A detailed report from the Ministry of Construction outlines the challenging landscape the cement industry is currently navigating:

• Excess Capacity: With a total of 92 cement production lines nationwide and a designed capacity of 122.34 million tons per year, factories are operating at an average of only about 77% capacity. This leads to an oversupply situation, putting significant pressure on businesses.
• Losses and Production Stoppages: Unfavorable business conditions forced 34 production lines to cease operations for 1 to 6 months in 2024; some even shut down for the entire year. Numerous cement manufacturing companies reported losses, severely impacting their business performance.
• Decreased Export Turnover: Although the total consumption of cement and clinker in 2024 reached approximately 95 million tons (a 1% increase compared to 2023), with domestic consumption slightly increasing by 3% (65.3 million tons), the export of cement and clinker significantly decreased. Specifically, export volume was around 29.7 million tons, a 5% drop compared to 2023. Export value was estimated at 1.136 billion USD, a 14.2% decrease from the previous year. Clinker alone (under codes 2523.10.10 and 2523.10.90) accounted for 301.4 million USD in export turnover in 2024.

Timely Directive from the Prime Minister – Efforts to Support Businesses

The decision to reduce export tax is not arbitrary; it’s a result of close direction from the highest level. As early as February 2025, Prime Minister Pham Minh Chinh instructed the Ministry of Finance to urgently review the Ministry of Construction’s proposal to reduce the export tax on cement clinker. Concurrently, the Ministry of Construction actively coordinated with the People’s Committee of Ha Nam province to review mineral exploration and exploitation plans, aiming to resolve overlapping issues and create more favorable conditions for the industry.

The reduction of the cement clinker export tax from 10% to 5% until the end of 2026 is expected to be a crucial “boost,” helping Vietnamese cement businesses overcome difficult times, stabilize production, and enhance their competitiveness in the international market.