The production capacity of the paper packaging industry in 2022 will increase
Up to the present time, Vietnam has more than 8 factories producing industrial paper packaging. Total design capacity reaches 1.4 million tons/year. Typically, by the end of 2021, the operating capacity of enterprises will reach about 800,000 tons. In which, Khoi Nguyen Paper One Member Limited Liability Company has a capacity of 120,000 tons/year; Marubeni Group has a capacity of 450,000 tons/year; Tan Huy Kiet Trading Company Limited with a capacity of 50,000 tons/year;…
Accordingly, the production lines will be operated at maximum designed capacity by 2022. At the same time, the paper packaging market will be supplemented with about 700,000 tons of paper. Also in 2022, experts expect a few other lines to be put into operation. The total designed capacity at the factories reaches 600,000 tons/year.
The demand for paper packaging industry in 2022 will increase
According to the Vietnam Paper Association, the consumption of paper packaging in the country in the period 2021 to 2025 is expected to increase by 12% thanks to the speed of urbanization. SSI Company forecasts, the urbanization rate in Vietnam is estimated to reach 40% in 2024. This number increases to 37% compared to 2019.
The paper packaging industry in 2022 will benefit from the outstanding growth rate of the e-commerce sector. Accordingly, the Department of E-commerce and Economics announced that our country’s e-commerce increased by 18%. The market size reached 11.8 billion USD, accounting for about 5.5% of the total retail sales of consumer goods and services nationwide.
Vietnam is considered the only country in Southeast Asia with double-digit e-commerce growth. Besides, the total export turnover of our country is growing steadily. This is a solid basis for Vietnam to promote the demand for the paper packaging industry in 2022 and the future.
Other factors affecting the paper packaging industry 2022
In addition to the main factors we just mentioned above, there are many more factors that support the development of the paper packaging industry in 2022 such as:
- Export prospects are high.
- Big advantage from Free Trade Agreements.
- Production shift trends.
In addition, the VPPA pointed out a number of positive factors affecting the growth of the paper packaging industry in Vietnam, including:
- Free trade agreement.
- The trend of shifting paper industry production.
These factors drive the demand for paper packaging in the fields of apparel, seafood, agriculture, electronics, telephones, leather and apparel, etc., to increase. Retail consumption in the country is forecasted to grow strongly. Minimizing the situation of plastic bag waste, plastic waste. Increase the demand for paper packaging in the country and in Asia up to 3.5%.