The Federation of Philippine Industries backed the Department of Trade and Industry’s motu proprio preliminary safeguards investigation on cement imports announced earlier this month. | INQUIRER STOCK PHOTO
The Federation of Philippine Industries (FPI) on Wednesday expressed its support towards the government’s move to investigate the reported increase in cement imports, marking a rising support from local business groups towards a measure seen as crucial in protecting local producers.
In a statement, the business group backed the Department of Trade and Industry’s (DTI) motu proprio preliminary safeguards investigation on cement imports announced earlier this month.
“FPI sees this action as a necessary response to the pressures and potential harm to the local industry posed by the surge of imported cement,” said FPI chairman Jesus Arranza.
“By initiating this safeguards investigation, Secretary (Cristina) Roque demonstrates the government’s commitment to the welfare of local industries, which provide employment and economic benefits to the country,” he added.
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Citing data it obtained from the DTI, the FPI said that imports increased continuously from 2019 to 2023.
The business group said cement imports increased by 10 percent in 2020, 17 percent in 2021, and 5 percent in 2023.
According to the Board of Investments (BOI), one of the investment promotion agencies under the DTI, 93 percent of cement imported by the Philippines is from Vietnam.
Indonesia is in second place with a 5 percent share, while China has a 1 percent stake.
Earlier in November, the BOI said it received commendation from the Cement Manufacturers’ Association of the Philippines for initiating the investigation to address what it called “the persistent influx of foreign cement that has flooded the Philippine market.”
Quoting CeMAP Executive Director Renato Baja, the BOI said that the local cement industry can produce up to 50 million tons every year, which is more than enough to meet the estimated national demand of around 35 million tons.
“However, imported cement particularly from countries like Vietnam, where domestic demand is declining and surplus production is exported, continues to exert pressure on local manufacturers,” said Baja.
Baja said that the Philippines’ cement industry is one of the few sectors in the Philippines that sources nearly 100 percent of their raw materials from local sources, indicating its mutualism to local businesses.