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Dong Nai Paper Industry Takes up 30 Percent of Domestic Paper Market

Dong Nai is located in the southern key economic region, close to the market that consumes a large volume of writing, printing, and packaging paper.

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Dong Nai paper industry has great development potentials with a capacity of 200,000 tons of writing and printing paper per year and 100,000 tons of packaging paper of all kinds per year.

Paper making is a sector that needs huge investment but gets back capital slowly. This is the reason why paper industry does not attract foreign investors. Thus, domestic paper industry is still Vietnamese paper makers’ playground.

Tan Mai Paper Joint Stock Company In Dong Nai is one of the largest paper makers in Vietnam.

The other paper makers are Dong Nai Paper Factory, Long Hung Paper Co. Ltd, Bien Hoa Packaging Joint Stock Company, and Khai Pham Private Company.

Dong Nai manufactures and provides a supply of paper accounting for over 30 percent of domestic market share, especially the market share of newsprint and printing paper.

However, Dong Nai’s paper production value in 2010 only hit VND2.34 trillion (or US$112.13 million) and its average growth rate in 2006-2010 period was 12.1 percent per year, approximately 2.3 percent of the production value of the whole industry.

Finished paper production declines year by year.

In 2010, finished paper production reached 129,189 tons, down by 3,626 tons against 2006.

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Most paper mills in the province are using old-fashioned production lines. This results in low production efficiency.

In addition, paper making is one of the industries to cause high pollution and to use a huge volume of water. Usually, 30 to 100 cubic meters of water are used to make one ton of paper if production facilities are old. Using advanced technology, 5 to 7 cubic meters are much enough to make one ton of paper. Thus, pollution in paper mills is a great concern.

Dong Nai’s 3 out of 5 paper makers are on the list of pollution-prone manufacturers and some paper making facilities must be relocated according to the province’s guidelines.

Under this circumstance, paper makers have decisively restructured themselves and invested in new production lines.

For instance, Tan Mai Paper Joint Stock Company has built the Eastern Region Tan Mai Paper Factory in an area of 54.6 hectares. This project is divided into two phases.

In 2011-2012 period, the company will install a new production line with a capacity of 150,000 tons per year, which mainly makes newsprint paper.

This production line is imported from Canada. It helps save fuel and production costs and reduces environmental pollution.

The next phase of the project is from late 2012 to 2014. At this time, production lines and support systems will be relocated from the current Tan Mai to the Eastern Region Tan Mai.

In addition, Tan Mai Paper Joint Stock Company has invested in two other projects: a pulp factory and a paper making factory in an area of 150 hectares in Dac To district, Kon Tum province.

Tan Mai-Quang Ngai paper and pulp factory in an area of 45 hectares, with a total investment capital of VND2,219 billion (or US$), and with  a capacity of 200,000 tons of paper per year and of 130,000 tons of BTCMP pulp per year in Binh Son district, Quang Ngai province is expected to go into operation by 2012.

Tan Mai Paper Joint Stock Company is implementing the project of a paper and pulp factory in Lam Dong province.

Dong Nai is one of the regions with a lot of paper mills that are operational, but no plannings have been made for the development of paper production areas until now.

Forest holders and forest-growing households are planting trees to get pulp in a limited area that is mainly forest protection land, and farming land and agricultural land. This fails to ensure an adequate supply for production.

The companies that are planting trees for pulp in the province are South Eastern Region Paper Company under Tan Mai Paper Joint Stock Company in Vinh Cuu district. The planting area is 1,320 hectares.

Development orientations for Dong Nai paper industry in the forthcoming time is as follows:

- Maintaining and improving products that have brand names, developing such premium quality products as couche.

- Taking more initiative to seize material resources

- Establishing a joint venture, setting up links, expanding production capacity to meet the market demand

- Keeping intensive and diverse investment, improving products’ quality.

- Maintaining production capacity at high pace to meet domestic demand.

- Focusing investment in the projects that are agreed upon to timely expand production capacity.

- Having investment in improving the quality of goods that is holding a market share to increase competitiveness compared with imported goods.

- Doing research into using a variety of materials, especially herbaceous plants, agricultural waste, and waste paper of all kinds.

- Giving a priority to using clean technology solutions and to dealing with pollution and environmental waste reduction problems.

- Enhancing research and development in all fields and making use of available material resources.

- Identifying additional species and plants that produce high yields and high quality pulp for efficient paper making.

Reported by N. Thuong, Translated by Duy Minh

Author: phongvien

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