Wednesday, February 20 2019

VietNamNews

Vinapaco urged to equitise soon

Update: January, 26/2019 - 09:00
A production line of Bãi Bằng Paper Company in the northern province of Phú Thọ. — Photo phutho.gov.vn
Viet Nam News

HÀ NỘI — Deputy Prime Ministry of Industry and Trade Cao Quốc Hưng has urged Vietnam Paper Corporation (Vinapaco) to move towards equitisation soon as there are many opportunities and challenges facing the industry this year.

Speaking at a conference to review business results in 2018 and plans for 2019 held this week in Hà Nội, Hưng said conditions were good for the paper industry to develop as the country’s economy was forecast to continue a high growth rate of 6.6 - 6.8 per cent. Macro-economic indicators and inflation would be maintained while international trade agreements would be implemented in many areas.

Meanwhile, he said the industry would deal with fierce competition in the domestic market as a consequence of the fourth industrial revolution. Geopolitics and global economics were presenting risks, with increased trade protection from many countries and the impact of free trade agreements.

“The core of the business sector lies in productivity, quality and efficiency to develop the market. Vinapaco needs to set up a clear direction of development to get a firm foothold in the market. From a small step, it is necessary to take a bigger step, building up a sustainable and effective corporation," Hưng said.

General Director of Vinapaco, Nguyễn Việt Đức, said the corporation’s development strategy focused on three areas, including production and business, development investment and restructuring.

“Vinapaco targets forestry as the key area in the future. It will continue performing its production and business for printing and writing paper and develop production of packaging paper and invest in wood processing,” Đức said.

Đức said the corporation planned to produce over 112,000 tonnes of various kinds of paper, reaching revenue of more than VNĐ2.6 trillion (US$111.8 million) and profit of VNĐ75 billion this year. It is expected to send about VNĐ121 billion to the State budget.

Hưng asked the corporation to improve its business management and human resources as well as technological equipment. It needs to make breakthroughs in seedling and intensive farming techniques to improve forest quality, focusing on environmental management and forest land use and implementing restructuring.

“In the fourth industrial revolution, we need to prove that the paper industry is equal in technological development. Innovation is a key task for the industry not to be left behind,” Hưng added.

In 2018, Vinapaco exceeded the set revenue target after reaching nearly VNĐ2.6 trillion, equal to 119 per cent of the yearly plan, making profit of VNĐ70 billion. It produced more than 120,000 tonnes of paper of various kinds, 113,000 tonnes of which has been consumed.

In terms of forestry, the corporation exploited 160,000 cu.m of wood for paper materials, planted over 2,300 ha of forest and took care of 8,000 ha. Its subsidiaries and affiliates made great contributions to the corporation’s production and business results such as Việt Trì Paper JSC and Tân Mai Group JSC. — VNS

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