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Domestic paper industry lags behind imports
The domestic paper industry is currently suffering due to imports driving up production costs and taxes amidst declining raw material volumes, according to the Viet Nam Paper and Pulp Association.
It said that raw material imports had remained necessary for pulp production purposes while the industry continued exporting large amounts of domestic material at low prices.
To prove its points, the association revealed that annually, the industry was capable of producing more than 400,000 tonnes of pulp, meeting 20 per cent of the total national demand.
Meanwhile, it added that over 2 million tonnes of wood-based materials used to make pulp had been exported.
Currently, although local demand had remained high, consumption was steady.
Global paper prices have however reduced recently, being around 10 per cent cheaper than domestically, the association confirmed.
It noted that out of date technology had been a large draw back in terms of production, quality and competitiveness.
The situation is expected to deteriorate when the import tax on paper is cut by 20 per cent in 2012 as part of World Trade Organisation (WTO) commitments.
To solve the problem, experts agreed comprehensive investment in technology was essential in streamlining operations to meet 70 per cent of domestic demand by 2020.
A General Customs Department report revealed that the country had imported 954,000 tonnes of paper, worth US$961 million, up 2 per cent in volume and 16 per cent in value.
Imports came mostly from Indonesia, Thailand and Singapore.
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