Vietnam’s cement clinker export tax cut sparks cautious market reaction

Vietnam recently lowered its export tax on cement clinker from 10% to 5%, aiming to ease costs for local producers and improve competitiveness in global markets. The tax cut, effective from May 19, is seen as a temporary relief measure until the rate returns to 10% in January 2027.

However, market participants remain cautious following the announcement. Traders and industry players are adopting a wait-and-see approach, preferring to observe how the move will impact actual demand and kiln activity before making significant adjustments.

A Southeast Asian trader said, "Whether this will ignite the Vietnamese kilns remains to be seen. Producers and exporters need to monitor market demand closely before rushing into any major decisions."

Adding to the cautious tone, a trader from a global trading house said, "The market is wait-and-see. Monsoon in Bangladesh and India means demand is foreseen to go lower, so there is no desperation to buy now."

Despite the tax reduction lowering export costs by roughly $1.80/mt, buyers and sellers are holding back, reflecting broader uncertainty in regional markets affected by fluctuating demand and tight import regulations. Overall, while the policy offers potential support to Vietnam's cement sector, immediate market momentum has yet to materialize as stakeholders weigh the longer-term implications.

Platts, part of S&P Global Energy, assessed CEMDEX Turkey at $54/mt FOB and Cement Clinker (OPC grey clinker) FOB Turkey at $45/mt FOB on May 22, both unchanged from the previous week.