Demand for paper products in the country

Vietnam paper industry now enjoys great opportunities. Thanks to rapid industrial growth and improvements in living standards, the demand for paper and packaged products is increasing, too. Vietnamese paper consumption per capita was 8 kg/person/year in 2000, and it rose to 13 kg/person/year in 2004. Presently Vietnamese factories can supply about 50% of the domestic demand; the remaining has to be imported. [Vietnamese Paper Corporation, 2004].

Current development and role of the industry in the economy

At present there are more than 300 paper and pulp production factories in the paper industry of Vietnam [Vietnam Paper Corporation, 2006].

The output of the whole industry [Statistical Year Book, 2005] is as follows:

-         In 2000: 408,500 tons (148,900 tons were produced by enterprises of the private sector)

-         In 2005: 901,200 tons (559,500 tons were produced by enterprises of the private sector)

In the past there were only state enterprises operating in the paper production sector. Nowadays, many enterprises of the private sector are involved in the industry besides state enterprises, which are being equitized.

There are differences in technologies and products between the two sectors. Advanced technologies are used widely in state enterprises, which allow producing whitened pulp, writing and printing paper of high quality. In contrast, old and outdated technologies are common among enterprises of the private sector, allowing producing products such as packing, wrapping, toilet and writing paper of low quality.

Location of paper enterprises

Paper enterprises are scattered in all three regions: the North, the Central and the South of Vietnam. The North hosts a number of large paper enterprises namely Bai Bang, Viet Tri, Hai Phong Paper Factory and Phong Khe traditional paper production Village where over 130 enterprises are located. In the Central region, there is Tan Binh factory. The South has Tan Mai, Dong Nai, Long An Paper Factories. In addition, paper mills of the private sectors can be found in all provinces and cities. [CBC, 2006] 

Paper industry development plan for the period from 2000 to 2010 [Ministry of Industries, 1998]

Objectives:

The objective is to effectively explore and utilize the resources to achieve the target of 1,050,000 tons of paper and 1,015,000 tons of pulp by 2010 supplying from 85% to 90% of the domestic demand.

Directions:

For technology: 

Projects to invest in new construction works and projects on upgrading and expanding key production bases have to apply modern and highly automatic technology and equipment to raise production capacity, save raw materials and energy, as well as protect environment in compliance with Vietnamese and international standards.

Second-hand equipment procurement should be thoroughly considered in each project and is permitted only in case of upgrading small-scale production bases.

For scale and capacity of investment projects

In the long term, large projects will be given priorities in order to raise production effectiveness.

In the short term, small and medium scale projects should be invested to take the local advantages of raw materials, market, and manpower sources.

 For location

Construction of paper factories should be based on careful research and assessment of location, raw material sources, market, infrastructure, and investment mobilization capacity.

Development of raw material regions should be planned in conformity with the agriculture master plan, seedlings plan, natural conditions (soil and climate conditions) and social conditions in particular areas. The plan should identify suitable production and management models for raw material regions, price policy, and method of purchasing and supplying raw materials.

The development of the paper industry, including raw material regions, should be carried out in a close relation with security, national defense, and environmental protection. It helps to promote the changes in production structure, enhance modernization and industrialization in mountainous and remote areas.