The Philippines Department of Trade and
Industry (DTI) has initiated a preliminary investigation on the application of
safeguard measures on the import of ceramic floor and wall tiles from various
countries, including Viet Nam, according to the Trade Remedies Authority of
The investigation will cover the period from 2013 to 2017.
According to the DTI’s notice, the protest alleged that increased
imports had contributed to serious damages to the local industry.
The petitioner was Mariwasa Siam Ceramics, Inc. (MSC) which
accounted for 86 per cent of the Philippines’s total production output subject
to the investigation.
The DTI’s notice said the volume of imports of ceramic floor and
wall tiles increased from 6,000 tonnes in 2013 to more than one million tonnes
in 2016. In 2017, imports were 12 per cent lower than in 2016 but still 2,192
per cent higher than in 2014.
China, Indonesia and Viet Nam were the major suppliers of the
Despite significant increases in market size, the market share of
domestic manufacturers declined from 96 per cent in 2013 to 14 per cent in
2017. The market share of imported ceramic tiles grew from 4 per cent in 2013
to 88 per cent in 2016. The domestic industry experienced a sharp decline in
earnings of 1,067 per cent in 2017.
“The market share of locally produced ceramic floor and wall tiles
was essentially displaced during the period under investigation as the share of
imports in the domestic market significantly increased,” the notice said.
The increased imports also allegedly damaged the domestic industry
in terms of production, sales, capacity ultilisation, incurred losses, price
depression and undercutting, according to the DTI.
Statistics showed imported ceramic tiles from Viet Nam accounted
for the second highest share of imports from 2014 to 2015.
In 2013, Viet Nam was the top foreign supplier of ceramic tiles in
the Phillippines with 2,491 tonnes or a 48 per cent share of imports. From 2014
to 2017, yearly imports from Viet Nam increased to 10,028 tonnes, 21,320
tonnes, 27,176 tonnes and finally 29,622 tonnes. However, Viet Nam’s import
share declined from 25 per cent in 2014 to 3.2 per cent in 2017.
In the first half of 2018, the country sent 4,005 tonnes of
ceramic floor and wall tiles to the Phillippines, making up 3.32 per cent of
The Trade Remedies Authority of Viet Nam urged Vietnamese
exporters to the Philippines to actively prepare for the investigation and
provide information to the DTI as required. — VNS
From Viet Nam News