On September 28, 2017, Mr. Han Vinh Quang, Chairman of the Vietnam Pulp and Paper Association, signed the document No. 24/2017 / VPPA to the Ministry of Industry and Trade to report on the market of wrapping paper in early September. to date. The report outlines the current status, causes, short-term and long-term impacts and recommendations of the Association.
The full text is as follows:
Currently, public opinion has been stirring the fact that Chinese merchants from early September, 2017 to Vietnam bought all the packaging paper available on the market at any price, even they want to sign long term contract and begged to pay in advance to bring the papers back to China.
The cause of this phenomenon is due to:
- Since May 2017, China ceased granting import quota of paper recovered as raw material for production.
- A number of paper mills are being closed to improve the recycling facilities to meet the new standards.
This has made paper mills in China shortage of raw materials and the Chinese market is lacking in packaging paper seriously. As a result, the price of paper for packaging and paper packaging has risen daily in China.
From now on, China will be the importer of recycled paper, due to:
- As of January 1, 2018, China completely ceased importing unclaimed scrap paper.
- The impurities in scrap paper imported as raw materials for production does not exceed 0.3% (currently 1.5%) - that is scrap paper must be completely clean.
- Raise thresholds for minimum size of plants that are allowed to import, process and use imported paper.
- By the end of 2019, China will gradually stop importing solid waste that can be replaced by domestic products and sources.
China's new policies for the management of scrap imports as raw materials for production and pollution control have impacted the Vietnamese market:
+ The market suddenly became scarce paper packaging.
+ Paper mills that run at full capacity still have no paper to satisfy the needs of domestic and overseas customers.
+ Helping many factories revive; Factories are accumulating to upgrade / expand.
+ Some mills have planned to urgently invest to take advantage of the opportunity.
+ Domestic paper manufacturers lacked raw materials because a large amount of paper was sold to foreign buyers.
+ Paper price increases every day from the beginning of the month; The increase is now over 15% and the forecast is still rising;
+ There will be many Vietnamese and FDI enterprises investing in the production of packaging paper in Vietnam with large scale and modern technology.
+ The process of eliminating backward production lines, small capacity, causing pollution will happen faster.
+ The quality of packaging paper has been rapidly improved.
+ Stimulate the collection of used paper in Vietnam, utilize resources and protect the environment.
Facing this situation, the Vietnam Paper Association and the Pulp and Paper Association have promptly informed about the fluctuation of the paper packaging market to its members, paper producers and paper packaging enterprises. :
- The paper-making enterprises seriously execute the contract signed with the customers (paper packaging companies) in terms of volume and price.
- Packaging paper enterprises should discuss and discuss with customers how to respond to the new situation on the basis of complying with market rules.
- Packaged paper companies consider discounting 2-5% of their selling prices to foreign buyers for new orders from their traditional domestic customers within a certain period of time.
- Vietnamese paper mills continue to improve waste treatment systems, especially wastewater to meet current standards.
- Should invest in the production of paper packaging capacity of 100,000 tons / year or more with modern technology.
The Vietnam Paper and Pulp Association reports to the Ministry of Industry and Trade on the changes in the packaging paper market and the views of the Association and look forward to receiving guidance from the Ministry../.