According to media reports, the Vietnam Pulp and Paper Association recently stated that due to the oversupply in the country, the Vietnamese paper industry needs to stop producing ordinary packaging paper and invest in other projects, such as high-quality packaging paper, which currently mainly relies on imports. #Paper cup raw material manufacturer

Dang Van Son, vice chairman and secretary-general of the association, said that in recent years, Vietnam’s paper industry has grown at an annual rate of more than 10%, producing nearly 10 million tons of paper and paperboard each year.

PE coated paper roll – Food grade paper

There are about 500 enterprises in the pulp and paper industry in Vietnam, and about 90% of the output is ordinary packaging paper used in clothing, textile, woodworking and other industries.

“Vietnam is now one of the largest producers of packaging paper in Southeast Asia,” said Dang Van Son, most of which are sold domestically. But he said the paper industry has been facing difficulties since September 2022 as demand in both domestic and export markets has shrunk. #PE coated paper

“The decline in exports of industries such as footwear, textiles and furniture has led to a reduction in the consumption of packaging paper.” He said: “The current production capacity of Vietnamese paper mills is only 50% to 60%. In 2022, Vietnam exported 1 million tons of paper, but This year may be less. Export orders have dropped significantly. Demand in the domestic market is also expected to drop by 10%. This is a huge difficulty for businesses.”

Flexo printing paper cup fan – custom pattern and LOGO

With more new factories set to come on stream in the coming years, Vietnam will add another 3 million tonnes of production by 2025, mainly packaging paper, and foreign companies are also looking to invest in the sector, he said.

The Paper Association said that the domestic market has a large demand for ordinary packaging paper, but the supply has grown faster than demand, resulting in an oversupply. Currently, Vietnam spends billions of dollars annually importing high-quality packaging paper, coated paper and other paper varieties. #Paper cup fan

Dang Van Son said Vietnam’s paper industry is facing some difficulties, such as dependence on imported raw materials, as investment in pulp production is still limited and there is also a lack of skilled workers.

Vietnam imports more than 500,000 tons of pulp every year, but the country also exports more than 15 million tons of wood chips used in pulp production. Dang Van Son said: “Solving the shortage of raw materials is one of the keys to the development of the pulp and paper industry. The government should encourage the use of Modern technology invests in the production of pulp and ensures environmental protection.” #Paper cup raw material supplier