Import-export and investment activities at Vietnam Paper Corporation in recent years - Current situation and solutions

Adjust market approach, re-study key products to focus on effective investment.

- For the Bai Bang Paper Expansion Project Phase 2 to overcome the capital shortage like the Thanh Hoa Paper Factory Project, the Corporation should have a form of calling for capital from foreign investors by forming joint ventures with foreign investors to be able to take advantage of their capital and technology. For example, the Corporation can form joint ventures with Indian or Thai investors - investors who are currently very interested in investing in developing the Paper industry in Vietnam.

In addition, the Corporation should also seek and research domestic enterprises to increase its own capital, and at the same time have an effective joint venture and association strategy in investment activities.

- In project appraisal and evaluation: Must actively research and select reliable partners and reputable foreign investment organizations to build effective investment strategies. Avoid the situation of not having good cooperation with contractors as before.

- During the project implementation process, we must pay close attention to human resources. We should promote capable and responsible staff, assign important responsibilities and accept reasonable contributions in all cases. We should not manage in the form of subordinates working according to the wishes of superiors, but should follow the spirit of cooperation, completing common tasks... everyone shares common tasks, is ready to recognize errors and risks to make timely adjustments...

CONCLUDE

Foreign trade activities of our country have long played a very important role in the national economy. It is like an open door to help us trade with countries around the world. In recent years, our Party and State have continuously implemented new economic strategies as well as wise foreign economic policies to maximize internal strength, successfully implementing the industrialization and modernization of the country. In which, there are two extremely important areas that have contributed to changing the country's industry, which are export and import. If export activities create capital for import, contributing to the shift of the market economy structure to an outward-looking economy, import activities help supplement the missing machinery and equipment for the industry.

Currently, in the condition that our country's manufacturing technology is still young, import and export activities in our country are indispensable because it creates conditions to promote the development of domestic production.

Investment activities to expand production and business are essential activities to expand scale and improve production capacity for enterprises. Only with effective investment activities can enterprises develop sustainably and improve their position in the market.

Officially established in 1995, after many years of construction and growth, Vietnam Paper Corporation has achieved many achievements in production and business, productivity, quality and efficiency are higher year after year, has made great contributions to the national economy, has been awarded the title of Heroic Labor Unit in the renovation period.

However, our country's economy is currently facing a great opportunity, since November 7, 2006 our country has officially joined the WTO. We have integrated into the global economy, the opportunity for our country's economy to develop quickly and strongly is very large, but the challenges are also many. Our country's paper industry is facing upcoming difficulties and needs to take measures to improve its competitiveness in the context of integration into the global economy. Within the scope of this article, I would like to propose some solutions to improve the efficiency of import-export and investment activities at Vietnam Paper Corporation. Hopefully, with my limited knowledge, I can contribute a small part in achieving the common goals of Vietnam Paper Corporation.

Once again, I would like to sincerely thank Associate Professor, Dr. Nguyen Van Hong and the staff of Vietnam Paper Corporation for their enthusiastic help in completing this article.

Appendix

Appendix 1: Production level and consumer demand response in 2006

Paper type

Self-sufficiency (%)
Newsprint	73.26
Printing & Writing Paper (Uncoated)	97.02
Packaging paper (Top layer)	55.00
Packaging paper (Middle layer)	50.38
Chalk coated paper	9.49
Tissue paper	98.98
Joss paper	100.00

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Source: http://www.vppa.com.vn/

Appendix 2: Forecast of paper production and consumption capacity to 2015

2006	2007	2008	2009	2010	2015
Capacity	1,158,000	1,341,000	1,498,000	2,350,000	2,618,000	5,400,000
- Newsprint	58,000	58,000	58,000	58,000	58,000	200,000
- Writing paper (coated with chalk)	57,000	70,000	70,000	80,000	90,000	200,000
- Printing and writing paper (uncoated)	260,000	260,000	300,000	350,000	370,000	750,000
- Paper for corrugated cardboard surface layer	313,000	400,000	450,000	870,000	1,000,000	2,100,000
- Paper used as middle layer of corrugated cardboard	172,000	250,000	280,000	542,000	620,000	1,350,000
- Chalk coated paper	93,000	93,000	100,000	180,000	200,000	450,000
- Tissue paper	65,000	70,000	100,000	130,000	140,000	200,000
- Joss paper	140,000	140,000	140,000	140,000	140,000	150,000
Consumption	1,554,578	1,800,230	2,054,479	2,424,136	2,882,243	6,045,000
- Newsprint	95,994	99,468	106,462	114,136	122,883	180,000
- Writing paper (coated with chalk)	88,916	109,342	130,000	150,000	173,000	370,000
- Printing and writing paper (uncoated)	235,785	256,000	294,000	333,000	380,000	667,000
- Paper for corrugated cardboard surface layer	454.004	530,577	616,700	750,000	943,000	2,150,000
- Paper used as middle layer of corrugated cardboard	298,175	375,096	431,673	524,000	640,000	1,600,000
- Chalk coated paper	174,433	191,711	202,384	243,000	270,000	418,000
- Tissue paper	39,402	40,500	43,600	46,600	50,700	75,000
- Joss paper	6,200	10,000	13,000	15,000	17,000	35,000
- Other paper	161,669	187,536	216,660	248,400	285,660	550,000
Manufacture	958,600	1,130,000	1,311,600	1,988,000	2,415,000	5,000,000
- Newsprint	59,000	55,000	55,000	55,000	55,000	190,000
- Writing paper (coated with chalk)	5,000	15,000	30,000	60,000	73,000	185,000
- Printing and writing paper (uncoated)	228,750	250,000	290,000	340,000	370,000	690,000
- Paper for corrugated cardboard surface layer	303,650	354,000	410,640	700,000	950,000	1,995,000
- Paper used as middle layer of corrugated cardboard	181,000	236,000	273,760	460,000	560,000	1,235,000
- Chalk coated paper	20,000	45,000	52,200	153,000	170,000	390,000
- Tissue paper	60,000	70,000	90,000	105,000	120,000	180,000
- Joss paper	101,200	105,000	110,000	115,000	117,000	135,000
- Other paper

Unit: Ton

101

Source: http://www.vppa.com.vn/

Appendix 3: Forecast of paper import and export to 2015

2006	2007	2008	2009	2010	2015
Import	766,958	861,730	962,579	705,986	725,343	1,371,000
- Newsprint	37,474	44,968	52,162	59,986	68,983	20,000
- Writing paper (coated with chalk)	83,916	94,342	100,000	90,000	100,000	185,000
- Printing and writing paper (uncoated)	31,035	36,000	36,000	43,000	70,000	67,000
- Paper for corrugated cardboard surface layer	162,354	191,577	226,060	70,000	20,000	155,000
- Paper used as middle layer of corrugated cardboard	135,675	160,096	180,913	104,000	80,000	365,000
- Coated paper	154,433	146,711	150,184	90,000	100,000	28,000
- Tissue paper	402	500	600	600	700	1,000
- Joss paper	0	0	0	0	0	0
- Other paper	161,669	187,536	216,660	248,400	285,660	550,000
Export	170,980	191,500	219,700	269,850	258,100	326,000
- Newsprint	480	500	700	850	1,100	30,000
- Writing paper (coated with chalk)	0	0	0	0	0	0
- Printing and writing paper (uncoated)	4,000	30,000	32,000	50,000	60,000	90,000
- Paper for corrugated cardboard surface layer	12,000	15,000	20,000	20,000	27,000	0
- Paper used as middle layer of corrugated cardboard	18,500	21,000	23,000	40,000	0	0
- Coated paper	0	0	0	0	0	0
- Tissue paper	21,000	30,000	47,000	59,000	70,000	106,000
- Joss paper	95,000	95,000	97,000	100,000	100,000	100,000
- Other paper	0	0	0	0	0	0
Per capita consumption (Kg/person/year)	18	21	24	28	32	60

Unit: Ton

Source: http://www.vppa.com.vn/

Appendix 4: Some indicators on the production and business performance of the Corporation in 2001 and 2002

Target

2001				2002			ST	TH 02/01
Plan	Perform	%	Plan	Perform	%		ST	TH 02/01
Total revenue	2,250.0	2,343.5	104.15	2,300.0	2,436.3	105.93	+92.8	103.9
Total cost	2,199.5	2,290.4	104.13	2,237.2	2,371.9	106.02	+81.5	103.5
Profit before tax	50.5	53.1	105.15	62.8	64.7	103.02	+11.6	121.8
Fixed capital	801	800.5	99.93	800	797.5	99.69	-3.0	99.6
Working capital	300	305.5	101.83	310	305.5	98.55	0	100.0
Submit budget	145.0	147.2	101.52	147.3	149.6	101.56	+2.4	101.6
Average income(1000. VND/employee)	1,100.	1,136	103.27	1,200.	1,297	108.08	+161	114.2
Number of employees	12,000	11,830	98.58	11,800	12,108	102.61	+270	102.3

Unit: Billion VND

102

Source: Production and business report - Vietnam Paper Corporation

Appendix 5 : Report on the Corporation's production and business results in 2003 and 2004

Target

2003	2004	Difference
2003	2004	Amount	%
Total revenue	2,484.1	2,821.9	337.8	13.6
Deductions	9.9	6.2	-3.7	-37.4
Net revenue	2,474.2	2,815.7	341.5	13.8
Cost of goods sold	2,266	2,636.4	370.4	16.3
Gross profit	208.2	179.3	-28.9	-13.9
Gross profit margin/net revenue (%)	8.4	6.4	-2.0
Cost of sales	56.2	50.2	-6.0	-10.7
CPBH/DTT ratio (%)	2.3	1.8	-0.5
Management costs	113.3	82.6	-30.7	-27.1
Management cost ratio/revenue (%)	4.6	2.9	-1.7
Financial revenue	14.6	6.0	-8.6	-58.9
Financial costs	120.5	110.7	-9.8	-8.1
Profit from business operations	-67.2	-58.2	9.0	13.4
Other income	40.1	8.9	-31.2	-77.8
Other costs	17.4	8.0	-9.4	-54
Other profits	22.7	1.0	-21.7	-95.6
Total profit	-44.5	-57.4	-12.9	29.0

Unit: Billion VND

103

Source: Production and business report - Vietnam Paper Corporation

Vietnamese

References

1. Annual summary report on production and business activities of Vietnam Paper Corporation.

2. Vietnam Paper Industry Magazine (many issues)

3. Decision No. 579/QD-TCHC dated September 9, 1998 promulgating regulations on planning and purchasing requirements of the General Director of Vietnam Paper Corporation

4. Textbook "Foreign trade techniques", editor: Associate Professor, Associate Professor, Dr. Vu Huu Tuu. Education Publishing House - 2006

5. Textbook on organization and management of import-export business operations - Associate Professor, Meritorious Student Vu Huu Tuu - Foreign Trade University - Education Publishing House - 2000.

6. Documents of the Department of Science and Technology - Ministry of Industry

7. Ministry of Industry (2004), Report on Paper Industry: Corporations and Members, Hanoi.

8. Vietnam Paper Corporation (2001), Development Strategy of Vietnam Paper Industry to 2010 , Hanoi

9. Vietnam Paper Corporation (2002), Feasibility study report on raw material area for Bac Kan pulp factory , Hanoi.

10. Vietnam Paper Corporation (2004), History of Vietnam Paper Industry , Hanoi

Inside.

11. Institute of Paper and Cellulose Industry (2000), Report on technical conference

Research and Development Investment 5 years 2001-2005, Hanoi.

English

12. Asia Pulp and Paper, October 2003

13. Asia Paper Express, May 2001

Websites