Pulp Production Needs US$1.1Bln of Investment by 2010

The paper industry is in need of US$1.1 billion for a development plan of pulp production in the next five years, according to the Vietnam Paper Corporation (Vinapaco).

 

The sum is to upgrade the existing pulp mills and building new ones in central, central coastal and southern regions, in order to increase their total designed capacity to 750,000 tons by 2010.

 

According to Vinapaco, the domestic pulp supply now only meets 34 per cent of the demand for paper production.

 

The industry now witnesses a big gap between pulp supply and paper production. The gap is blamed on the lack of high-capacity pulp factories (over 100,000 tons per year each).

 

According to the adjusted plan for development of Vietnam’s paper industry until 2010, a vision to 2020, the industry targets to produce 600,000 tons of pulp and 1.4 million tons of paper per year by 2010.

 

During 2006-10, the paper industry will also increase the capacity of paper mills to satisfy at least 70 per cent of domestic consumer demand, boost exports of some kinds of paper, such as printing paper and tissue paper and create jobs for around 200,000 people in remote areas. 

 

At present, Vietnam has almost 300 pulp and paper mills, eight of which are VINAPACO’s affiliates. Vietnam & World Economy