Demand for seeking raw materials of Paper Industry

Demand for seeking raw materials of Paper Industry 

Recycled paper and packaging paper play an important role in the sustainable development of the paper industry in general. However, seeking raw materials for paper production is still a challenge for this sector.

Demand for seeking raw materials for paper production

According to Vietnam Pulp and Paper Association (VPPA), one ton of recycled paper can save 17 mature trees, 4.000 kWh of electricity, 270 liters of oil, 26.000 liters of water and 3.5m3 of land for burying. Nevertheless, Vietnam is being concerned about the import of raw materials since China, which consumes more than half of scrap in the world, announced that it will stop importing 24 types of recycled materials at the end of 2017.

Currently, Vietnam has about 300 enterprises producing 200,000 tonnes per year, but this number is not enough. In 2017, Vietnam had to import 1.5 million tonnes of recycled paper as raw materials for production. The RISI and VPPA statistics in 2017 showed that demand for using recycled pulp worldwide accounted for 59 percent with 251 million tonnes.

As the number of paper consumed, from recycled paper to packaging paper, in the country has grown rapidly in recent years, many paper manufacturers are more urgently looking for raw materials. According to Phan Chi Dung - former Director of the Light Industry Department of the Ministry of Industry and Trade, the year 2018 is expected to reach 4.7 million tonnes. For packging paper in particular, the demand for domestic consumption and export is high, so the increase in production capacity for packaging paper has great potentials to develope.

The policy on paper classifications in foreign countries

In some countries, in order to limit the import of recycled paper, they have a policy of classifying paper, which means they can not only be recycled more efficiently but also for export purposes. In Europe, for instance, in 2017, they revoked 57 million tonnes, used 48.6 million tonnes of recycled paper, and the rest were exported. In Asia, the total revocation was 106.7 million but used up to 137 million tonnes because of the high demand for paper. Particularly, Japan is reported to have the highest revocation rate of over 80%.

According to Hoang Trung Son - General Director of Dong Tien Paper and Packaging Company, Vice President of VPPA, recycling rate in Vietnam is less than 40%, while  the world’s average standard is 56%. This is one of the major challenges of the paper industry. Also, Mr. Son said that Vietnam should consider policies to enjoy cheap paper in the world such as India, Thailand, Malaysia ... but still limit impacts on the environment.

Paper Vietnam, The International Exhibition & Conference on Pulp and Paper Industry anually held in Vietnam, is an ideal place for connecting, enhancing and expanding businesses. Please come to visit Paper Vietnam 2019, which will take place from 26th – 28th June 2019 at Saigon Exhibition and Convention Center (SECC) in Ho Chi Minh City.