HCM City (VNS/VNA) - The domestic paper industry hasachieved good growth in the past five years and expects to maintain themomentum until 2025 driven by demand for tissue and packaging paper, accordingto the industry business group.

Hoang Trung Son, Vice Chairman of the Vietnam Paper and PulpAssociation, said that from being a country that imported its needs, Vietnamhas managed to become an exporter of various kinds of paper, especially forpackaging, with exports growing at over 65% a year in the 2015 -2020 period.

According to the General Department of Customs, exports were worth1.13 billion USD in the first seven months of this year, up 21.6% year-on-year,with the US, China, Cambodia, Taiwan, and Indonesia being the biggest markets.

“The economy has faced many difficulties over the last 10 years,and geopolitical tensions, especially the Russia-Ukraine conflict and theCOVID-19 pandemic, have disrupted the supply chain, causing high inflation, butVietnam's economy has still developed well, including the paper industry,"Son said.

The paper industry’s output grew at over 25% a year, he said.

Many mills with capacity of 100,000-150,000 tonnes per year wereset up in 2020 and 2021, totalling up to two million tonnes a year, he said, adding that another one million tonnes would be added by the end of 2023.

Foreign enterprises too have increased their investment in theindustry to exploit the domestic market and export potential, Son said.

Companies are expected to face difficulties this year due to theglobal economic recession and fierce competition both at home and abroad, buttheir long-term prospects are bright, he assured.

“Investing in the paper industry is for the long term, from fiveto 10 years, even 20 years.”

He said 50% of the raw materials used by the industry is imported. The industry is focused on the green factor since it is naturallysuited to the circular economy. Its basic raw material comes from planted forests, which can beregenerated, and used paper.

In developed countries, more than 70% of all paper is recycled. It is nearly 50% in Vietnam, Son said, adding that the industrywants to increase the figure./.