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| Vietnamese paper industry expands production capacity in 2010 |
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http://www.sbdailynews.com
2011-03-04 |
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HANOI, March 2 (Xinhua) -- The Vietnamese paper industry expanded largely in 2010 after eight major new production facilities with a total capacity of 430,000 tonnes per year were put into operation.
They include four new paper mills worth six trillion Vietnamese dong (285 million U.S. dollars) in Quang Ngai, Lam Dong, Kon Tum and Dong Nai Provinces by Tan Mai Joint Stock Company; one packing plant worth 3.35 trillion Vietnamese dong (159 million U.S. dollars) in Binh Duong Province by Vina Kraft Paper Company; the My Xuan 2 Plant, around two trillion Vietnamese dong (95.2 million U.S. dollars) in Ba Ria Vung Tau Province by Sai Gon Paper Company; a newsprint production mill worth 520 billion Vietnamese dong (24.7 million U.S. dollars) by Bai Bang Paper Company; and a tissue paper plant in Bac Ninh Province, roughly 20 million U.S. dollars by Diana Joint Stock Company.
According to Vu Ngoc Bao, Vietnam Pulp and Paper Association General Secretary, sizeable investment in the paper industry last year is a good sign, reflecting a growth rate of this industry expected to reach 11 percent this year.
However, domestic paper producers continue to barely break even or even operate at losses. Manufacturing costs rose by 30 percent last year, while producers increased product prices by only 14-20 percent.
Bao said that paper import duties have been reduced by 20 percent since September 2008, and Vietnam has opened the door to foreign competitors from the United States, China and Japan, increasing competition for domestic producers. |
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