On 11th of April, in Conference Paper Chem introduce Vietnam 2012 in HCM City, Ho Chi Minh City, representing the Ministry of Industry and Trade, Association of Pulp and Paper Vietnam, Centre for Information industrial chemicals CNCIC and the leading partners in the paper industry at home and abroad has made many analysts show that Vietnam’s paper industry is facing great opportunities of the integration process.
Manufacturing faces many difficulties
According to the Pulp and Paper Association Vietnam, now has 300 paper mills, but the majority are small-scale and medium technology obsolete. Recently, though a number of major projects in the paper industry to be implemented, such as the pulp mill project in Tuyen Quang (capacity of 130,000 tons / year), Phuong Nam Pulp Factory, the flour mill Tan Mai Paper Group in Quang Ngai and Kon Tum, … but this unit is so far the project has encountered many difficulties in capital, raw materials, …
According to statistics, more than 2 million tons of paper are consumed each year in the country there were 48.2% is imported from abroad. For pulp, although production capacity reached 438,000 tons or less but also largely offset by imports, while firms also operate at minimum capacity (approximately 20-25%). Moreover, having to import most of the production technology of foreign paper has shown the secrets of the business department of domestic production before the trend must restructure to integrate, enhance competitiveness and dominate the market.
Mr. Vu Ngoc Bao says that paper industry enterprises currently face many difficulties in funding. To invest in the pulp industry, a project requires about 200-300 million dollars – this is a very large amount of capital that are not yet well enough now to mobilize. Meanwhile, projects in other areas just a few million dollars and the possibility of capital quickly.
Also, a general inadequacy of the key industries that the paper industry of Vietnam is not immune from the reality “export crude.” While the deterioration of materials due to deforestation and natural disasters. .. happens every year, but every year Vietnam has exported over 3 million tons of dry chips from plantation timber (second only to Australia). The country’s raw material procurement Vietnam finished product, then enter return to Vietnam with high cost (!?).
The domestic and foreign experts also suggested the industry should invest in Vietnam market network under the motto “reliable supply – Demand high”, thereby creating opportunities for establishing relationships and investment projects; enhance the sustainable development of the paper industry and international competitiveness.
Source: Vietnam Paper Industry