Influences of paper scrap on packaging paper production

Packaging paper production – Source:

Paper scrap is considered to be an important material source to produce 70% of paper output in Vietnam, including packaging paper. Thus, overcoming the difficulty relating to importing paper scrap is really in need.

The challenge: Collecting paper scrap meets only 15-20% of demand

Many groups of paper scrap such as mixed paper – one of important materials for producing packaging paper, now can stand outside from the imported entry list. This is a big challenge for the industry as around 70% of paper are produced from paper scrap.

The current situation has shown that collecting paper scrap meets maximum 15-20% of demand, the rest must be imported. Meanwhile, Meanwhile, the workshop of correcting Decision 73/2014 / QĐ-TTg regulates the list of scrap materials allowed to be imported from abroad as raw materials for production, including the proposal to eliminate scrap paper of HS 47079000 - commonly known as mixed paper, an important source of raw materials for businesses to produce packaging paper (cardboard, corrugated iron...).

The demand for packaging paper for domestic consumption and export growth is high, with about 15% per year which is the highest number among many types of paper. Therefore, if the mixed paper is eliminated from the list of materials imported from abroad will cause significant impacts on the enterprises producing packaging paper, typically the lack of raw materials for production, the increase in cost of production, the decrease in business efficiency. "According to the data of the first 6 months of 2018, the number of mixed paper on total imported scrap materials accounts for 37% of the total, and 2018 is expected to reach about 2 million tons, if so, the damage is about $ 37 million. ", said Pham Dinh Thuong – The expert in policy analysis.

There is a need for "understanding" dialogue between state management and the business community

Many experts say that it is necessary to tighten import scrap management at this time, especially when some enterprises took advantage of the gaps in the management of scrap materials import for production  over the past time to import "garbage" into Vietnam, affecting the environment. However, scrap paper groups such as mixed paper are still an important manufacturing material for the industry. Thus, according to Phan Chi Dung - Former Director of the Light Industry Department, the Ministry of Industry and Trade said: "This decision can cause potential problems for the development of the paper industry in particular and in many related productions and services in general.”

The enterprises said that now the mixed paper put into the paper mill will undergo stringent treatment process, and the waste is also put into the treatment of the boiler. At the same time, the technology in bleaching process has changed differently, from the tradditional one to some other materials, so the waste to the environment also significantly reduced.

Hoang Trung Son - Vice Chairman of Vietnam Pulp and Paper Association (VPPA), said that there should be clear dialogue between the state management agency and the business community in order to have a "clear understanding" for regulating scrap paper regulations to be more reasonable.

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