High demand promises great opportunities for Vietnam's paper manufacturers

Demand for packaging paper is expected to increase by 14-18 percent per annum in the next 5-10 years, according to the Vietnam Paper and Pulp Association (VPPA).

Analysts say the paper industry is supported by a high export growth rate and robust economy. In 2019, Vietnam’s export turnover for the first time exceeded the $500 billion threshold.

High demand promises great opportunities for Vietnam's paper manufacturers



Meanwhile, about 5.4 million tons of paper were exported in the year, an increase of 9.8 percent compared with the year before.

Environmentally friendly paper products have become favored, which promises great potential for the industry, especially demand for paper packaging for food which replaces plastic packaging.

FTAs also bring opportunities to export Vietnam’s packaging paper and packaging to markets which offer preferential tariffs to Vietnam. The Chinese move of shutting down a series of paper plants will also benefit Vietnamese enterprises.

However, analysts said there are many great challenges Vietnam is facing. There are 300 paper manufacturers in Vietnam, but most of them are small and utilize backward technology. Not many enterprises can make high-end packaging paper.

In order to satisfy increasingly high demand, the paper industry needs to expand their production scale. And the enterprises with advantages in making packaging paper need to be pioneers.

In order to satisfy increasingly high demand, the paper industry needs to expand their production scale. And the enterprises with advantages in making packaging paper need to be pioneers.

 


These enterprises are mostly foreign invested. Lee & Man Vietnam (420,000 tons a year), Vina Kraft (500,000 tons) and Chanh Duong (550,000 tons) make up nearly 50 percent of total packaging paper output.

Lee & Man has advantages in making Krafliner and Whitetopliner meeting standards for export. Whitetopliner is a kind of paper made on high-technology production line and Lee & Man is the only enterprise which can make this kind of paper in Vietnam.

To satisfy demand for packaging, plants need to run at full capacity or increase capacity. The national plan on the paper industry development says the packaging paper output would be 6.035 million tons by 2025, twice as much as 2019.

Some paper manufacturers have taken first steps to expand their plants. In 2017, Vina Kraft inaugurated its second packaging paper plant in Binh Duong, raising the capacity of the two plants in the province to 500,000 tons.

The second plant uses green technologies which minimize the use of water and energy consumed.

However, not many paper manufacturers can find capital to invest in such paper plants with high capacity. In terms of production expansion, foreign invested enterprises have greater advantages.

Lee & Man Vietnam, which receives financial support from its holding company Lee & Man Hong Kong, for example, has invested $650 million in a hi-tech packaging paper production line.

Le Ha 

8th graders make paper bags of banana tree trunks, consider a start up

8th graders make paper bags of banana tree trunks, consider a start up

Two students in HCM City plan to set up a business making environmentally friendly paper bags from banana tree trunks.

Turning traditional paper into works of art

Turning traditional paper into works of art

When his parents gave him a book that taught him how to fold paper into dinosaurs and other prehistoric creatures at the age of seven, Nguyen Hung Cuong found his passion – origami.

 
 

Other News

.
Policies encourage automakers to assemble cars in Vietnam
Policies encourage automakers to assemble cars in Vietnam
BUSINESSicon  06/08/2020 

 Several automakers are considering assembling their best-selling models in Viet Nam due to the Government’s policy of zero import tariffs on components and a 50 per cent reduction in registration fees.

Thai firms acquire wind power farm in Ninh Thuan
Thai firms acquire wind power farm in Ninh Thuan
BUSINESSicon  06/08/2020 

Thailand’s Banpu and its power business arm Banpu Power (BPP) have joined forces to acquire El Wind Mui Dinh, an onshore wind farm in the south-central province of Ninh Thuan, in a deal worth $66 million.

EVFTA smooths the way for Vietnamese farm produce
EVFTA smooths the way for Vietnamese farm produce
BUSINESSicon  06/08/2020 

The EU-Vietnam Free Trade Agreement, at its core, aims to liberalise both tariff and non-tariff barriers on key exports of both sides over a period of 10 years.

Vietnam receives positive view in global exports as EVFTA takes effect: report
Vietnam receives positive view in global exports as EVFTA takes effect: report
BUSINESSicon  05/08/2020 

Vietnam is expected to continue growing its share of global exports despite decline amid the resurgence in the COVID-19 pandemic after three months of no local transmissions, according to an HSBC report.

Local banks are racing to catch digitisation trend: expert
Local banks are racing to catch digitisation trend: expert
BUSINESSicon  05/08/2020 

Vietnam has seen a digital wave in the finance-banking industry, with many lenders investing significantly in digitisation, experts have said.

Experts call on Vietnamese government to aid businesses again
Experts call on Vietnamese government to aid businesses again
BUSINESSicon  05/08/2020 

Amid the new COVID-19 outbreak, experts have suggested the Government offer another credit support package to help enterprises, especially large businesses in key areas.

Vietnam's textile and apparel firms lack orders for the last two quarters
Vietnam's textile and apparel firms lack orders for the last two quarters
BUSINESSicon  05/08/2020 

The Ministry of Industry and Trade said that textile production increased by 1.8 per cent, while clothing production decreased by 4.6 per cent in the first seven months of this year over the same period last year.

New power pricing mechanism to be applied next year
New power pricing mechanism to be applied next year
BUSINESSicon  05/08/2020 

The common retail power price is expected to be applied at the beginning of next year together with the current tiered pricing mechanism, said Deputy Minister of Industry and Trade Do Thang Hai.

VN tra fish companies see profits slump in pandemic
VN tra fish companies see profits slump in pandemic
BUSINESSicon  05/08/2020 

Multiple tra fish companies suffered losses due to falling export prices and lower orders, focusing instead on the domestic market amid the COVID-19 pandemic.

EVFTA hoped to help with sustainable poverty reduction in Vietnam
EVFTA hoped to help with sustainable poverty reduction in Vietnam
BUSINESSicon  05/08/2020 

The EU-Vietnam Free Trade Agreement (EVFTA), which came into force on August 1, is hoped to create a driving force to help Vietnam reap further achievements in poverty reduction and economic growth.

Analysts: High-end hotels hold appeal among investors
Analysts: High-end hotels hold appeal among investors
BUSINESSicon  05/08/2020 

Analysts from real estate consultant Jones Lang LaSalle have said domestic and foreign investors alike are actively seeking to purchase high-end hotels in downtown areas, mostly due to limited land supply.

Economists warn of ‘psychological inflation’ in Vietnam
Economists warn of ‘psychological inflation’ in Vietnam
BUSINESSicon  06/08/2020 

The high CPI increase in the first half of the year will challenge the regulation of goods and service prices in the remaining months of the year, experts say.

Capital is cheap, but there are few borrowers
Capital is cheap, but there are few borrowers
BUSINESSicon  06/08/2020 

The capital cost has never before been so low. In the interbank market, the VND overnight interest rate was 0.13 percent per annum on July 8, according to the State Bank of Vietnam.

Wooden plank exporters struggle with higher tax rates
Wooden plank exporters struggle with higher tax rates
BUSINESSicon  04/08/2020 

The Vietnam Timber and Forest Product Association has sent an urgent petition to the Ministry of Finance, Ministry of Agriculture and Rural Development and Ministry of Industry and Trade about congestion of wooden planks

E-wallet firms battle for slice of cashless payment pie
E-wallet firms battle for slice of cashless payment pie
BUSINESSicon  04/08/2020 

E-wallets firms are battling for a piece of the cashless payment market amid rapid growth in the context of the COVID-19 pandemic.

Corporate income tax reduction comes into effect
Corporate income tax reduction comes into effect
BUSINESSicon  04/08/2020 

Resolution 116/2020/QH14 granting a reduction of 30 per cent on corporate income tax (CIT) for eligible enterprises officially came into effect on Monday.

Big rearers win big
Big rearers win big
BUSINESSicon  04/08/2020 

Many animal husbandry enterprises are leveraging the pork supply shortage to sell at high prices, earning huge profits

VN businesses slow in preparing to enjoy preferential tariffs in EVFTA
VN businesses slow in preparing to enjoy preferential tariffs in EVFTA
BUSINESSicon  04/08/2020 

 Experts have raised concerns that Vietnamese businesses are slow in preparing conditions to enjoy preferential tariffs in the Viet Nam-EU Free Trade Agreement (EVFTA).

Probe into Tenma Vietnam’s alleged bribery underway: police official
Probe into Tenma Vietnam’s alleged bribery underway: police official
BUSINESSicon  04/08/2020 

The investigation into the Japanese-invested Tenma Vietnam company’s allegation of bribing civil servants and tax and customs officers of northern Bac Ninh province is still ongoing, according to a police official.

VN textile, electronics hardest hit in pandemic: official
VN textile, electronics hardest hit in pandemic: official
BUSINESSicon  04/08/2020 

Textile and electronics have been the two export-oriented sectors mostly impacted by the COVID-19 pandemic, an official has said.

 
 
 
Leave your comment on an article

OR QUICK LOGIN