Vietnam Slash Import Taxes on Pulp, Paper
The Vietnamese Ministry of Finance has decided to reduce import taxes on almost all kinds of pulp and paper to zero from January 1, 2008, from previous 1 per cent and 3 per cent, in response to proposal of the Vietnam Pulp and Paper Association.
The Ministry of Industry and Trade said on its web site that the zero import tax, the same level in other regional countries, will facilitate operations of local companies.
Vietnamese pulp and paper companies have faced challenges like material shortage, high import taxes that forced them to increase prices of paper by 30 per cent and 40 per cent.
The companies spent US$595 million importing 841,000 tons of paper in 2007, up 25.5 per cent on year in terms of value and 19.5 per cent in terms of volume.
The Ministry of Industry and Trade early last year ratified overall development program for paper industry by 2010 and toward 2020 in a bid to produce 600,000 tons of pulp by 2010 and 1.8 million tons by 2020 to meet some 70 per cent of local demand.
Currently, 300 pulp and paper mills are able to produce 288,000 tons of pulp and 850,000 tons of paper annually, meeting only 30 per cent of the demand. (Vinanet)
Vietnamese
