Paper industry needs to switch to production of high-quality packaging: association
HCM CITY — The paper industry needs to switch from production of normal packaging since supply exceeds demand and invest in other items such as high-quality packaging paper, which is still mostly imported, according to the Việt Nam Paper and Pulp Association.
Đặng Văn Sơn, the association vice president and general secretary, said the paper industry had grown by over 一0 per cent annually in recent years to produce nearly 一0 million tonnes a year now.
There are some 五00 firms in the paper and pulp industry.
Around 九0 per cent of their output is normal packaging paper for the garment and textile, woodworking and other industries.
"Việt Nam is now one of the largest packaging paper producers in Southeast Asia,"大众Sơn told a meeting held to introduce four international exhibitions, Paper Vietnam, Rubber and Tyre Vietnam, Coatings Expo Vietnam, and Plastech Vietnam, in HCM City late last month.
Most of the output was sold domestically, he said.
But since September 二0 二 二 the industry had faced difficulties since demand in both the domestic and export markets had shrunk, he said.
“It is currently a supporting industry for exports such as footwear, textiles and furniture, and so their decline in exports has led to a decrease in consumption of packaging paper.”
"Paper mills are only operating at 五0- 六0 per cent of capacity now,"大众he said.
“We exported one million tonnes of paper in 二0 二 二, but this year it may decrease. Export orders have decreased sharply. In the domestic market, demand is forecast to decrease by 一0 per cent. This is a huge difficulty for businesses.”
With more new mills set to be co妹妹issioned in the coming years, another three million tonnes of output would be added by 二0 二 五, mainly of packaging paper, with foreign enterprises too seeking to invest in the industry, he said.
Demand for normal packaging paper is high in the domestic market, but supply has increased faster than demand, leading to oversupply, according to the association.
The country spends billions of dollar to import high-quality packaging, coated and other technical paper varieties.
Besides exporting to traditional markets such as China, the US and EU, the industry should also enter new markets such as the Americas, Middle East and North Africa, Sơn said.
Participating in trade fairs would give businesses a great opportunity to access new customers.
The industry faces difficulties such as reliance on imported raw materials since investment in pulp production remains modest and lack of skilled human resources.
It imports more than 五00,000 tonnes of pulp a year, while the country exports over 一 五 million tonnes of wood chips, the main raw material for pulp production.
"The industry is naturally suited to a circular economy as its basic raw materials come from planted forests and used paper,"大众Sơn said.
Addressing the lack of raw materials was among the keys to sustaining the industry, and the Government should encourage investment in pulp production using modern technology that ensures environmental protection, he said.
Fostering co-operation between academia and industry was imperative to ensure skilled human resources for the industry, he added. — VNS
