Paper group wants tariffs gone

Hanoi (VNA) - The Vietnam Paper and Pulp Association (VPPA) has asked the Finance Ministry to eliminate the tariff on printing paper imports from ASEAN countries.

The current tariff run at 5 percent.

The Association said the request aims to stabilise the paper industry,
which is suffering from strong demand and limited supply in an era of rising
resource costs.

At present, domestic paper producers can only fulfil 60 percent of market
demand for printing paper, estimated to top nearly 2 million tonnes this
year. The remaining demand is met through pulp imports, said the
association.

In the first seven months of this year, Vietnam imported 118,000
tonnes of pulp, worth 2 million USD, a 66 percent rise in volume and 86
percent hike in value over last year.

During the same period, Vietnam imported 471 million USD worth of
processed paper products, representing a 40 percent increase in value from
2007.

According to the association, paper will remain in short supply until the
third quarter of this year at the earliest.

Strong demand for paper products in China and India has put
upward pressure on international paper prices which are roughly 800 USD per
tonne, and forecast to increase further.

However, from next year the association said, a sharp rise in the domestic
printing paper supply will ease demand pressure, likely resulting in
decreasing prices. Vietnam aims to produce 570,000 tonnes of paper by
2011.-Enditem