China has been a major market in paper export of Vietnam for many years. From the beginning of January, 2018, Vietnam's paper exports to China have surged sharply, 11 times more than the same period of 2017.
According to statistics, although the export value of paper and paper products has declined in the past two months (In June, decreased by 9.24% to $ 100.33 million, In July, decreased by 14.8% to $ 85.48 million). Total turnover from the beginning of the year to July of 2018 increased 59.1% over the same period, reached 591.5 million.
China increased its paper consumption importing from Vietnam by 11 times
The Chinese market accounts for the largest share, accounting for 27.2% of Vietnam's exports of paper and paper products. However, this year, this market increased the number of import nearly 11 times, up about 1028.97% over the same period in 2017.
The main reason for the increase in China's imports from Vietnam is due to the government's policies to protect the seriously polluted environment in China. Indigenous businesses have encountered difficulties in importing recycled materials, leading to a series of shutting down pulp and paper factories. In addition, the trade crisis between the US and China is also a major cause of China's import stagnation, seriously affecting the economy. The fact that the US rates high tariffs on imported goods from China has slowed down the trade of exporters. In response to the United States, China also raised taxes on the United States, causing some Chinese firms to pay higher costs and lack of raw materials, particularly soybean.
In addition, the shortage of raw materials such as scrap paper, paper recycling (RCP) also caused large paper mills in China to plan to stop operations from July to August recently. This has impacted Asian countries as the shift of cheap paper production material tends to shift to these countries. The shortage of supply may cause Chinese businesses to shift their investment to other countries to produce recycled pulp.
Second largest import countries of Vietnam are Southeast Asia countries in general, accounting for 25.4% of the proportion reached 150.2 million, up 41.19%. The United States was the third largest market with turnover of US $ 70.6 million, up 15.92%, followed by Taiwan (China) up 9% to US $ 52.6 million.
Compared with the same period in 2017, outside the Chinese market has increased spike, exports to the Philippines and South Korea also increased sharply. Specifically Philippine 2.47 times (increasing 147.65%) reached 17 million; South Korea is 2.25 times (up 125.67%) reached 12.8 million.
In the opposite direction, exports to EU countries plummeted 24% to $ 2.1 million.
Prospects for paper exports continue to rise sharply
It is forecast that in the remaining months of 2018, export turnover of paper and paper products will maintain the growth momentum, especially in the Chinese market, as the government continues to grant RCP import license. , despite the fact that import volumes have been reduced to very low levels due to stringent inspections.
On July 16, 1818, China's Ministry of Ecology and Environment approved RCP quotas of up to 832,976 tons at its 16th license for solid waste imports in 2018. From the beginning of 2018, there were 13.45 million tons of RCP licensed import.
In addition, many big companies around the world are now working to protect the environment by stopping the use of plastics and switching to paper products.
Starbucks, for example, plans to stop using plastic straws at all 28,000 stores by 2020 by planning closures or using environmentally friendly paper straws.
Many countries around the world have also started to ban the use of plastic bags to limit the number of products such as Australia, South Korea, Zimbabwe, etc.
To find out more about domestic and international paper markets, visit the International Exhibition & Conference on Paper and Pulp industry in Vietnam at the Saigon Exhibition and Convention Center (SECC) from 26 - June 28, 2019.