The paper industry has attracted US$1.1 billion for pulp production projects in the next five years. The investment will be used for upgrading the existing pulp mills and building new ones in central, central coastal and southern regions, in order to increase their total designed capacity to 750,000 tonnes by 2010.
According to the Vietnam Paper Corporation, the domestic pulp supply now only meets 34 percent of the demand for paper production.
The country's output of materials supplied to the pulp mills has reached 2 million tonnes/year, ensuring a stable material source for the mills to double their output to 400,000 tonnes/year.
The wide gap between pulp supply and paper production is attributed to the lack of high-capacity pulp factories (more than 100,000 tonnes/year each).
The corporation said, if the industry receives the investment as planned, its factories will be able to satisfy domestic demand for pulp and paper by 2010.
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