Vietnam Paper Mill Shortage Of Waste Paper Raw Materials Faces Discontinuation

- Nov 14, 2018 -

Vietnam paper mill shortage of waste paper raw materials faces discontinuation

 

After the Vietnamese government restricted the import of solid waste, Vietnam’s packaging, paper and plastics industries, due to the lack of raw materials, had to face the dilemma of production suspension.

 

Dang Van Son, secretary general of the Vietnam Pulp and Paper Association, said that restriction imports has caused great damage to the paper industry in Vietnam. Now Vietnam’s paper mills can only import waste paper containing zero impurities as raw materials before they can pass customs clearance. In addition, some paper and packaging companies have expired import waste paper licenses for more than three months. Although the company has repeatedly sent new applications to the examination and approval authorities, the examination and approval authorities have suspended the issuance of new licenses which has caused great damage to the production of enterprises, influences.

 

In Vietnam, 70% of paper production requires waste paper as a raw material, and 40% of waste paper raw material are supplied by Vietnam, and the rest are imported. In 2018, Vietnam can recycle 1.4 million tons of waste paper ans import about 2.19 million tons. According to forecasts, by the current growth rate, by 2025, Vietnam will need to import about 9 million tons of waste paper to ensure normal production.

 

The paper industry accounts for 1.5% of Vietnam’s GDP and generates $1 billion in annual exports. Vietnam’s paper demand is expected to increase by more than 105 in the next 10 years. In particular, the demand for packaging paper will grow at a rate of 15% per year, reaching 10 million tons by 2025.

 

In fact, countries including Vietnam, Malaysia, and India are facing the same development problems as China. On the one hand, the government hopes to limit the import of solid waste and reduce the environmental pollution of “foreign waste” to the country. The top leaders of China, Vietnam and Malaysia have repeatedly stated in public that they will not sacrifice the environment for economic growth. On the other hand, due to the sudden implementation of the policy, it has brought great influence to the enterprise. The lack of raw materials and the sharp increase in costs have prevented the enterprise from producing normally.

 

Improve import standards, increase investment in environmental protection, and reduce environmental hazards. Now it has become a countermeasure for Vietnamese paper mills to get out of trouble.

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