During a working session with the corporation in Hanoi on March 24, Mr Dung said that Vietnam has great potential for forestry development, including 8 million ha of commercial forests, and the paper industry should make the best of this advantage to become a spearhead economic sector.

“The paper industry has a large number of consumers thanks to an increasing demand for local consumption and for exports. This requires the corporation to play a key role in producing and selling paper products, helping to stabilise market prices,” said Mr Dung.

He pointed to the corporation’s slow progress in implementing investment projects, including the Thanh Hoa paper mill and the expansion of the Bai Bang paper mill in Phu Tho province.

He asked the corporation to speed up these unfinished projects, effectively implement forestation projects, equitise all of its companies and gradually eliminate middlemen to increase its economic efficiency.

Last year, the corporation produced more than 315,000 tonnes of paper, making up 30 percent of the country’s paper production. It earned a total of VND5,600 billion in revenue and a profit of VND250 billion.