Are tax policies on the export of cement clinker products in Vietnam amended according to Directive 28?

Are tax policies on the export of cement clinker products in Vietnam amended according to Directive 28?

According to Directive 28/CT-TTg of 2024, the domestic and export markets of building materials face many difficulties due to reduced domestic and global demand, supply chain disruptions, slow growth of the domestic real estate market, the delayed implementation of many construction projects and key infrastructure projects, and increased transportation costs.

The exported clinker and other building materials have decreased due to fierce competition on product prices from major global producers, together with technical barrier regulations in export markets; the domestic market faces fierce competition due to a significant increase in imported products in recent times.

According to Clause 1, Section 2 of Directive 28/CT-TTg of 2024:

II. TASKS AND SOLUTIONS

1. Regarding development policy mechanisms:

- Review the mechanisms, policies, and institutions to encourage rapid and sustainable investment and development of the building materials industry, serving the production and business activities of enterprises, contributing to the socio-economic development of the country. Restructure debt repayment periods, adjust interest rate levels for loans for customers, including businesses in the building materials industry as per legal regulations. Issue preferential policies on the use of household waste, industrial waste, and waste from certain industries such as ash, gypsum... as fuel and raw materials replacement in cement production and other building materials. Strengthen state management in the building materials sector, especially in cement and construction steel consumption activities.

- Research and adjust the tax policy on the export of cement clinker products to ensure competitiveness with countries exporting similar products, while aligning with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) regarding not imposing export taxes on goods for countries signing the Agreement. Strengthen measures on trade defense, technical barriers, and anti-dumping for steel products and building materials such as imported ceramic tiles, fiberboard (LDF/MDF/HDF), sanitary ware, construction glass... to eliminate unfair competition behaviors and ensure compliance with Vietnam's regulations and WTO.

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Therefore, to overcome the decline in exported clinker and other building materials, the Prime Minister of Vietnam proposes tasks and solutions regarding industry development policies, including the requirement to research and adjust the tax policy on the export of cement clinker products to ensure competitiveness with countries exporting these products, while aligning with the CPTPP on not imposing export taxes on goods for countries signing the Agreement.

Are tax policies on the export of cement clinker products in Vietnam amended according to Directive 28? (Image from the Internet)

Will the Ministry of Finance in Vietnam study to specify cement clinker products subject to VAT?

According to Clause 3, Section 3 of Directive 28/CT-TTg of 2024:

III. IMPLEMENTATION ORGANIZATION

...

3. Ministry of Finance

a) Lead the formulation of a Decree amending Decree No. 26/2023/ND-CP of May 31, 2023, on Export Tariffs, Preferential Import Tariffs, List of Goods and Fixed Taxes, Mixed Taxes, Import Taxes beyond Tariff Quotas; research and propose adjustments towards applying a suitable export tax rate for cement clinker to solve current consumption difficulties.

b) Lead the formulation of a Decree guiding the Law on Amendments to Law on Value-Added Tax after being adopted by the National Assembly; study regulations on cement clinker products towards "cement clinker products being subject to VAT" for both domestic consumption and export.

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Thus, the Ministry of Finance is tasked with leading the formulation of a Decree guiding the Law on Amendments to Law on Value-Added Tax after being adopted by the National Assembly; study regulations on cement clinker products towards "cement clinker products being subject to VAT" for both domestic consumption and export.

Additionally, the Ministry of Finance must research and propose adjustments towards applying a suitable export tax rate for cement clinker to solve current consumption difficulties.

What are the duties of the Ministry of Industry and Trade of Vietnam in assisting clinker and cement exporters in Vietnam?

According to Clause 2, Section 3 of Directive 28/CT-TTg of 2024:

III. IMPLEMENTATION ORGANIZATION

...

2. Ministry of Industry and Trade

...

d) Lead, cooperate with the Ministry of Construction and related ministries in considering dossiers requesting investigation on the application of trade defense measures, conduct investigations per regulations, and promptly issue specific measures on trade defense against steel products and building materials such as imported ceramic tiles, fiberboard (LDF/MDF/HDF), sanitary ware, construction glass... ensuring compliance with Vietnam's regulations and WTO.

dd) Lead, cooperate with the Ministry of Construction, People's Committees of provinces, centrally managed cities, associations, and professional associations in promoting trade, accessing foreign markets to assist exports of clinker and cement products; construction steels, coated steel sheets, and steel products.

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Thus, the Ministry of Industry and Trade of Vietnam will lead and cooperate with the Ministry of Construction, People's Committees of provinces, centrally managed cities, associations, and professional associations in promoting trade, accessing foreign markets to assist exports of clinker and cement products; construction steels, coated steel sheets, and steel products.