Vietnam Pulp and Paper Association (VPPA): “Need to develop high-end paper packaging segment.”
Assessing that the production capacity of popular paper packaging in Vietnam has now exceeded demand, businesses are struggling to find export markets, so the Vietnam Pulp and Paper Association (VPPA) recommends manufacturers be reminded when investing in new or expanding this product line.
At the event, Mr. Dang Van Son, Vice President and General Secretary of VPPA, shared information about the paper industry.
On the other hand, the paper industry needs businesses to develop the high-end paper packaging segment because currently, Vietnam is spending billions of dollars to import this product line.
The above information was recorded at the kick-off conference of international trade exhibitions specialized in paints, paper, rubber, and plastics combined with the seminar “Connecting values towards sustainable development” in Ho Chi Minh City on the 28th of March.
At the event, Mr. Dang Van Son, Vice President and General Secretary of VPPA, said that about 90% of the domestic paper industry output is everyday packaging paper products serving the industrial manufacturing industries. Karma. “Vietnam is currently the country with the largest output of general packaging paper in Southeast Asia,” said Mr. Son.
According to Mr. Son, the country has about 500 enterprises operating in the paper industry, and the number of enterprises under VPPA is only 130. Still, it accounts for 90% of the capacity of the whole industry.
The representative of VPPA said that from September 2022 to now, paper industry enterprises have faced many difficulties in output. The reason is that the paper industry is currently an auxiliary industry for most of the export production fields, so when industries such as footwear, textiles, furniture, etc., were affected, the decline in orders led to a fall in packaging paper consumption.
According to VPPA’s estimates, many enterprises operate at only about 50%-60% of their designed capacity to maintain production. Mr. Son predicts that in 2023, the operation situation of enterprises in the industry will be even more difficult because Vietnam’s manufacturing industries are declining.
With a large production capacity of about 8 million tons/year, the factories are currently only running about 60% of their capacity, so according to Mr. Son; the efficiency is not high.
Production capacity is forecasted to increase by about 3 million tons by 2025, while the situation shows that capital inflows into the production of ordinary paper packaging are continuing to grow. According to Mr. Son, small businesses continue to improve the output scale, while foreign enterprises in this field continue to find ways to invest in Vietnam.
Therefore, the representative of VPPA recommends that businesses and investors in this industry continue to pour capital to increase capacity; output will be challenging.
According to Mr. Son, about 90% of paper packaging products are made for consumption in the domestic market. Therefore, for factories to operate efficiently, it is necessary to increase the export rate.
VPPA encourages businesses to access new export markets in countries such as the Americas, the Middle East, etc. Participation in exhibitions such as international trade exhibitions specializing in paints, paper, rubber, and plastics takes place NVPPA also considers next June in Ho Chi Minh City to approach new customers.
Mr. Son advised businesses and investors to develop the high-end paper packaging segment because each year, the country’s economy of nearly 100 million people spends billions of dollars on importing up to 1 million tons of this product line.
According to Mr. Son, the paper industry faces internal difficulties and needs long-term solutions. Specifically, the source of raw materials for sustainable development has not been ensured; There is no large-scale commercial pulp production enterprise, so it imports more than 500 thousand tons of pulp per year. In addition, paper enterprises also face a severe shortage of high-quality human resources.
Therefore, to ensure the source of raw materials for sustainable development, VPPA recommends that the State should encourage investment in producing pulp from domestic materials with modern technology and environmental protection.
This series of specialized international trade shows include The 10th International Exhibition and Conference on the pulp and paper industry (Paper Vietnam 2023); The 9th International Exhibition and Conference specializing in the rubber industry and tire manufacturing (Rubber & Tire Vietnam 2023); The 8th International Exhibition and Conference on coatings, coloring, dyeing, and printing ink (Coatings Expo Vietnam 2023); The 4th International Exhibition and Conference on plastic machinery, equipment, technology, and raw materials (Plastech Vietnam 2023).
The exhibitions will occur from June 14 to 16, 2023, at the Saigon Exhibition and Convention Center (SECC), Ho Chi Minh City. Minh Vi Exhibition Company (VEAS) – the event organizer said the four exhibitions mentioned above would have 230 exhibitors from 20 countries and territories.
source: Thesaigontimes & VPPA
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