Thai wholly-invested Vina Kraft Paper Ltd. Company broke the ground on a high-quality paper mill in southern Binh Duong province on July 5.

The US$140 million plant, covering 38 ha in My Phuoc 3 industrial zone, will produce 200,000 tonnes of packaging products per year when it is put into operation in 2009.

According to President Chaovalit Ekabut of the Thai investor, Siam Cement Group (SCG), Vietnam is the group's major paper exporting market over the last 10 years.

The group plans to inject more capital into its packaging paper production in Vietnam.