Paper maker targets higher earnings

The Viet Nam Paper Corporation (Vinapaco) targeted earnings of more than VND6.6 trillion (US$314 million) this year, a year-on-year increase of 25 per cent, the corporation announced.

In 2011, Vinapaco also plans to produce 315,500 tonnes of paper, up 23 per cent over last year.

The Viet Nam Paper Association said Vinapaco had ample opportunity to attain their goal because the Vietnamese paper industry met only 70 per cent of domestic demand.

In the coming years, the association said demand would increase by 10 per cent per year.

Vinapaco will continue to expand production, with the second phase of the Bai Bang Paper Plant.

Vu Thanh Binh, deputy director of the corporation, said that his enterprise was now boosting marketing activities and pursuing new markets.

Vinapaco was also focused on export products, Binh added.

An effective distribution system would also be established in many regions to meet increasing domestic demand.

Markets in remote areas would receive more attention from the corporation, with discounted prices offered.

Vinapaco has dedicated itself to fully meeting domestic demand for print and writing paper.

Despite the many advantages to further develop this year, Vinapaco said it faced a number of challenges.

Higher raw material prices were likely to strongly affect production.

Moreover, bank loans were insufficient for Vinapaco member companies to develop production, it added.

Despite the world recession, Vinapaco did well, recording a profit of VND212.3 billion ($10 million) in 2010, up 10 per cent over 2009. None of member companies faced losses last year.

Vinapaco produces leading paper material brands including Hong Ha, Bai Bang paper, Song Duong tissue and Tan Mai print paper. — VNS

Tags: Vietnam paper industry