Vietnam has directed its cement exporter to fully cooperate with the Department of Trade and Industry (DTI) amid an investigation of allegations of cutthroat competition with its Filipino counterpart.

The Vietnam Trade Office in the Philippines has advised sellers of cement to the country to actively cooperate to avoid “unfavorable outcomes.”

Phùng Văn Thành, Trade counselor for the Philippines, said during the preliminary investigation, the Department of Trade and Industry (DTI) identified 33 cement exporters supplying the market, including Viet companies.

“The DTI sent questionnaires to exporters, but only 9 out of 33 responded, including six Vietnamese exporters,” he said.

To minimize potential losses, Thành recommended that during the upcoming formal investigation, Vietnamese cement exporters should actively provide relevant information to the investigating authorities.

This is crucial to prevent unfavorable decisions based on incomplete or pre-existing information.

“The core aspect of a safeguard investigation is to assess the severe injury suffered by the domestic industry due to imported cement,” he said.

Common voice needed

Therefore, Thành emphasized that it is necessary to have a representative from the cement industry to bring businesses to review collectively, provide information, and have a common voice with the Philippine investigating agency in reviewing and analyzing the actual impact.

Vietnam holds the largest market share of imported cement in the Philippines. In 2024, cement exports to the Philippines were estimated at 7.2 million tons, accounting for 94.4 percent.

On 20 February, Trade and Industry Secretary Maria Cristina Aldeguer-Roque issued order 25-01, imposing provisional safeguard duties of P400 per ton (approximately $6.90) on two types of imported cement, to protect domestic cement production.

Specifically, the DTI initiated a safeguard investigation on certain imported cement products, including Portland cement (AHNT Code 2523.29.90) and blended cement (AHNT Code 2523.90.00), based on the ASEAN Harmonized Tariff Nomenclature (AHNT).

The investigation covers imports of these cement types from 2019 to 2024.

The preliminary investigation led to the imposition of provisional safeguard duties. These duties will remain in effect while the Philippine Tariff Commission conducts a formal investigation.

It will be imposed for 200 days from the date the Philippine Bureau of Customs issues the tariff order.

CeMAP backs tariff move

The Cement Manufacturers Association of the Philippines Inc. (CeMAP) hailed the decision to impose the provisional safeguard measures on imported cement.  

A preliminary safeguard investigation by the DTI found prima facie evidence that an increase in cement imports was negatively affecting the domestic industry.

The DTI pointed to “sufficient evidence of the recent, sudden, sharp, and significant increase in imports” as contributing to serious harm to the local cement sector.  

According to publicly available data from the Bureau of Customs, CeMAP noted a significant rise in cement imports. In 2024, cement imports reached an all-time high of 7.6 million tons, a 10 percent increase over 2023.  

“We’re delighted that finally the DTI’s decision came out. We’ve been waiting for this for a long time. And we really thank DTI for pushing it through. It is really a relief to the local cement industry that they issued a provisional safeguard measure. We’re really happy and we will, as we said, be in full support of the investigation being done now so that they can issue final or general safeguard measures,” CeMAP executive director Renato Baja told DAILY TRIBUNE.

Baja also discussed the current challenges the local cement industry is facing, particularly with manufacturing costs. Vivienne Angeles and Raffy Ayeng