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Printing press struggles to survive paper price increase wave
A new difficult period for traditional printing press has been anticipated, since the newsprint price has been increasing sharply, press agencies cannot raise newspaper prices in the current circumstances, and where people all have to cut down expenses.
Paper price on continuous rise
Paper producers and suppliers all have announced a new paper price hike wave after they made a lot of efforts to maintain production, and only raised the paper price slightly by five percent at the end of 2010.
However, they have to give up the motto “keep prices stable to retain clients” and have to raise the sale prices to cover the increasing expenses.
The Vietnam Paper Corporation has announced that from April 15, the prices of printing and writing papers would increase by 5.7 percent on average. Prior to that, since March 1, 2011, the price of Bai Bang-made paper has increased by 5.7 percent. Similarly, the price of paper made by Tan Mai group saw the prices increase two times (10 percent for each time) since mid March 2011. The product is selling at 16.1 million dong per ton of newsprint.
These prove to be the cautious steps made by the two enterprises which hold the biggest domestic market shares, while small and medium enterprises have raised the sale prices continuously.
According to Vu Ngoc Bao, Secretary General of the Vietnam Paper and Pulp Association, producers have to raise the sale prices continuously because the material prices (Pulp and scrap paper) have been increasing sharply. Meanwhile, banks have pushed the lending interest rates up to sky high levels, which are unaffordable for many enterprises.
Paper price hike causes headache to press agencies
Nguyen Van Dong, Director of Tran Phu Printing Company, said that the price of Tan Mai-made paper has increased three times since the beginning of the year, which has forced the printing company to consider charging higher printing fees on press agencies.
However, Dong admitted that it is impossible to raise the printing fees sharply in accordance with the paper price increases. Meanwhile, he complained that not only the paper price, but other input material prices have also increased, from the electricity and water price, to the labor cost.
“The printing costs have increased by 10-15 percent. We are conducting negotiations with press agencies about the printing price increases,” Dong said.
Printing press agencies complain that the printing cost increases have put more difficulties for them, who now have to compete fiercely with new types of press
According to Nguyen Huu Diep from the Lao dong va Xa hoi journal (Labor and the society), to date, he has not received any notice from the printing house on the printing fee increases. However, in fact, the printing fee has increased since 2010 already, while the distribution fee has also increased since the beginning of 2011. Therefore, the price of the journal has increased by 9500 dong to 10,000 dong.
Diep admitted that it is impossible to raise the sale price of the journal at this moment, because the journal may lose readers. “We will have to use the earnings from other sources to offset the printing fee increases,” he said.
Meanwhile, a representative from a printing press agency said he has received the notice from the printing house on the printing fee increase of five percent. With the new printing fees, the press agency will incur losses if it keeps the current sale price of 3000 dong per 16 page copy.
He said some press agencies are considering using lower quality paper or narrowing the paper sizes to cut down expenses.
Dong said that the best solution for now is that both printing houses and press agencies have to share the difficulties.
Not only press agencies, but publishing houses have also become worried stiff about the paper price increases. Bui Tuan Nghia, Deputy Director of Kim Dong Publishing House said the printing fees have increased by 14-20 percent so far this year already, adding that the publishing houses will have to raise the sale prices of books.
Buu Dien
vietnamnet
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