In early November 2024, the Philippine Department of Trade and Industry (DTI) announced the start of a preliminary safeguard investigation into cement imported from several countries, including Vietnam.
The products under investigation are cement classified under the ASEAN Harmonized Tariff Nomenclature (AHTN) codes 2523.29.90 and 2523.90.00.
The case was initiated by the DTI under Article 6 of the Safeguard Measures Act (Republic Act No. 8800) based on initial data provided by the Philippine Bureau of Customs (BOC) and the Philippine Cement Manufacturers Association. This data indicates that the increase in imported cement has caused serious harm to the domestic cement industry.
In a list of 38 cement-exporting enterprises to the Philippines provided by the BOC, 18 are Vietnamese. The DTI, as the investigating agency, will send inquiries and request information from these companies.
Preliminary data shows that between 2019 and 2024, Vietnamese cement accounted for up to 98% of total cement imports into the Philippine market at times.
| Year | Total Imports (million tons) | Vietnam's Exports (million tons) | Share (%) |
| 2019 | 5.33 | 4.23 | 79 |
| 2020 | 5.88 | 5.38 | 91 |
| 2021 | 6.89 | 6.38 | 93 |
| 2022 | 6.70 | 6.34 | 95 |
| 2023 | 7.01 | 6.88 | 98 |
| 2024 | 3.68 | 3.44 | 94 |
The safeguard investigation mainly targets Vietnamese cement. In the past, the Philippines imposed temporary safeguard duties and anti-dumping duties on Vietnamese cement. By 2022, the Philippine Tax Commission recommended maintaining safeguard duties, but the DTI decided otherwise, opting to only apply anti-dumping duties.
The new safeguard investigation signals an attempt to impose additional tax burdens on Vietnamese cement to protect local producers, increasing challenges for Vietnam's cement exporters.
Unlike anti-dumping cases, safeguard investigations assess the "serious harm" to the local industry caused by imports and apply a universal tax rate across all sources, not specific enterprises. Vietnamese enterprises should collaborate, share information, and present a unified position to the Philippine investigation agency to address issues such as the link between import volumes and local industry harm.
The key lies in demonstrating whether the harm claimed is attributable to increased imports and protecting Vietnam's interests during this investigation.
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<p>Time: 2024 By: Ministry of Industry and Trade</p>
