Paper production rolls exports will pressing issue
Viet Nam is practising an exercise in loss, importing expensive paper pulp(from: http://www.office-products-suppliers.com/buy-paper_pulp%2520/) and paper products while exporting wood at low prices.
In the first seven months of this year, the country imported 118,000 tonnes of paper pulp, worth US$82 million, up 66 per cent in volume and 86 per cent in value from the previous year.
During the same period, Viet Nam spent around $471 million importing 585,000 tonnes of various kinds of paper products, an increase of 24 per cent in quantity and 40 per cent in value.
Last year, the country also had to import 130,000 tonnes of paper pulp products and 820,000 tonnes of paper products.
The paradox has been prolonged because most projects to process paper pulp and paper in the country have been postponed, while local demand continued to rise.
To satisfy local demand, the country had to import around 70 per cent of paper pulp and paper products, according to the Viet Nam Paper products and paper pulp Association.
Viet Nam had to spend even more money importing paper pulp and paper in face of the pricing storm on various kinds of goods in the global market.
For instance, in May 2008, the price of paper pulp was around US$735 per tonne, 13 per cent higher than last May.
Bottlenecks
Although many investors have poured money into paper mills, they have not invested in producing the raw materials necessary for production.
In a similar effort, Viet Nam Vinatech Technology Supermarket in July signed an agreement with Japanese Taise and Ohhara Group to transfer non-wooden paper pulp (from: http://www.office-products-suppliers.com/buy-pulp/)production technology.
The technology will take advantage of available materials in Viet Nam such as straw, sugar cane refuse and eucalyptus to make paper products.
The production line will have a capacity ranging from 15 to 30 tonnes a day with an average price of $600 per tonne and hopefully reaching $18,000 a day.
The corporation has also asked the Government and other related agencies to remove the tariff on paper products imports while developing policies to call for investment into the paper sector.
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