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Investment opportunities in paper industry PDF Print
Monday, 28 November 2011 15:03

VIETRADE - Vietnam’s paper industry showcases superb opportunities. Vietnamese paper consumption per capita was 8 kg/person/year in 2000, rising to 13 kg/person/year in 2004 and 22 kg/person/year in 2009. With Vietnamese factories only supplying 50% of domestic demand, the remaining has to be imported.


There are more than 300 paper and pulp producers in Vietnam. In the past there were only state enterprises operating. Nowadays, many private enterprises are competing with state enterprises, that latter of which are in the process of transfer to private industry.


Vietnam‘s paper industry’s capacity is only able to (i) produce at 70% the capacity it was designed for, and (ii) satisfy only 35% of the demand. That means much of the decent paper has to be imported. Total quantity of imported paper was 1.03 million tons for 2009.


There are several mills having capacity of over 1,000 tons/month. Most mills’ technology lags 10-20 years behind other countries’. However, Bai Bang and Tan Mai are two of several plants having installed modern processing technology. Most of the local paper mills produce bond paper. The required raw material, pulp, is becoming more and more scarce. Demand forever exceeds the supply.


The Vietnam Paper Association reports that the paper industry in Vietnam still focuses mainly on bond (printing and writing paper). The capacity to produce packaging paper is very limited, and the industry needs to import much of it.


There has recently been several big investment projects in the paper industry such as the SCG Paper Group (USD 220 million), Lee and Man Paper (USD 480 million), Sojitz and Oji Paper (USD 1.2 billion). These projects are going far in helping meet domestic demand.


Plan of development targets and objectives: The paper industry has two objectives:

- To establish a paper industry, in Vietnam, having advanced technology, establishing centralized paper and pulp production areas with a substantial capacity to satisfy domestic consumption and export needs.


By 2020, 70% of domestic demand is to be met, while increasing exports of paper articles that will be competitive in regional and world markets.


- To establish centralized paper raw material areas to provide suffcient raw materials for producing 1,800,000 tons of pulp by 2020, making possible the building of concentrated and large paper processors.


- In particular, the aims that the industry targets to 2020 are: Increase forest coverage to 907,000 hectares, providing suffcient raw materials for producing 1,800,000 tons of pulp and 3,600,000 tons of paper.

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