The problem facing local businesses is getting dire by the day, requiring immediate action from the government against the dumping of imports, primarily cement.

The crisis is urgent among cement manufacturers since many producers have just upgraded their factories and spent huge amounts in the process.

Cheap imports now inundate the market, putting domestic firms in the difficult situation of incurring high operation costs since the capacity of their plants is not fully utilized.

According to an industry group promoting Philippine-made products, the recent Department of Trade and Industry (DTI) actions against the influx of cement should be relentless.

Trade and Industry Secretary Cristina Roque recently initiated a motu proprio investigation on proposed safeguards measures on cement, an unprecedented move that gives hope to the local industry that the agency has every intention to level the playing field.

Based on DTI records, cement imports increased 10 percent in 2020, 17 percent in 2021, and five percent in 2023.

The DTI undertook a necessary response to the pressures and potential harm to the local industry posed by the surge of imported cement.

The safeguards investigation reflected the government’s commitment to the welfare of local industries, which are now under siege from cheap Vietnamese products that had not passed the quality check of the government.

Vietnamese cement makers are under strong pressure to look to overseas markets as cement consumption in the country is on a progressive decline.

Manufacturers in that country have an average output of 123 million tons of cement per year but actual capacity may exceed this by tens of millions of tons. The problem of Vietnamese dumping is replicated in countries like Taiwan.

On 26 September 2024, the Trade Remedy Commission of the Ministry of Economic Affairs made an affirmative preliminary determination in its injury investigation involving the antidumping duty case concerning Portland Cement and clinker from Vietnam.

According to a preliminary determination, the commission found there is a reasonable indication that the Taiwan industry is threatened with material injury due to imports at less than normal value.

Vietnam Cement Association data showed in 2023, 42 production lines had to halt operations for one to six months, with some even ceasing operations for the entire year.

Many producers are facing bankruptcy while others are contemplating the sale of a portion of their equity to foreign investors.

The situation in Vietnam is that public investment projects are moving slowly as many contractors rely on slow traditional technologies.

The housing market has also stagnated, with a low rate of actual implementation for social housing projects.

Rising fuel prices have led to higher transportation expenses, affecting both production costs and sales prices.

Members of the Viet industry are now seeking debt restructuring and interest rate reductions, aligned with their current financial capacities.

Similar to the domestic players, members of the Vietnam association wanted to increase capacity, reduce costs, and utilize industrial waste to lower cement production costs and remain competitive.

The Ministry of Construction has finalized and submitted to the government the revised Housing Law and Real Estate Business Law to promote sustainable market development and implement at least one million social housing units for workers from 2021 to 2030, thus hopefully stimulating cement consumption.

The local industry indicated that it is dedicated to working alongside the government to promote fair competition, jobs creation and the long-term sustainability of industries.

In 2023, imported cement from Vietnam reached 7 million metric tons which was almost the same volume in 2022.

Cement Manufacturers Association of the Philippines data reveals that anti-dumping duties imposed beginning March 2023 were only levied on 20 percent of total cement exports to the Philippines.