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Ministry seeks paper import tax cut, offers incentives to recyclers
The Ministry of Industry and Trade has asked the Ministry of Finance to reduce the tariff on paper imports from ASEAN members to zero from the current 5 per cent to stabilise the paper market.
It has also called for offering incentives to paper mills that recycle waste paper.
According to the Viet Nam Paper Corp 4,000 tonnes of newsprint were imported in June, 4.15 per cent less than in the same period last year.
Imported paper now costs US$800 per tonne and is expected to go up to $820-850 in the coming months due to a fall in imports from ASEAN members.
The Viet Nam Paper Association has forecast demand to top 2 million tonnes this year while domestic mills will only be able to supply 1.3 million tonnes.
Publishers grapple with rising costs Paper prices have gone up by 6-21 per cent this month, according to Vu Ngoc Bao, the association's general secretary.
Tan Mai Paper Joint Stock Co said newsprint costs VND14.38 million per tonne on the market, over VND3 million up from earlier this year. The price of writing paper has increased by VND1 million per tonne to VND16.8-18.6 million.
Bai Bang paper mill too has increased the cost of writing paper by VND2 million per tonne to VND19 million.
Newspapers said with newsprint and printing materials like ink, zinc, and chemicals accounting for 60-70 per cent of production costs, they face huge difficulties following the increase in their prices.
Vu Van Binh, deputy editor-in-chief of Tuoi Tre, said last year his newspaper spent VND62 billion on newsprint. He estimates it to go up to VND97 billion this year.
Ho Van Nam of Quan Doi 1 printing press said besides the cost of materials, workers' salaries too have risen by 20 per cent.
Tran Huy Tien, chief accountant of Nguoi Lao Dong (The Labourer) newspaper, said the newspaper tried to cut expenses but was forced to increase its price to avoid losses.
Pham Minh Thuan, director of Fahasa bookshop chain, said students have also been affected by the price hikes because notebook prices have increased 10-15 per cent.
Phung Quoc Bao, director of the Ha Noi National University's publishing house, said the prices of textbooks and reference books would have to be increased. His agency has already cut back on the number of books it prints because of lack of funds.
Despite the higher prices, however, there is a shortage of paper in the market. Several publishers and printers have had to queue up at mills to buy paper.
VNS
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