So, what are the main causes? According to VINPAS, several factors have contributed:
1. China’s Economy Recovering Faster than Expected: The rapid recovery of China’s economy has led to a significant increase in demand for paper and carton starting in late 2020. This surge in demand has caused paper from China to rise sharply, while supply has been limited and unable to meet production needs. As paper from China became more expensive, other paper producers also raised their prices.
2. Shortages of Containers, Trucks, and Railcars: The shortage of containers, trucks, and railcars has significantly increased logistics costs and created bottlenecks in the supply chain.
3. COVID-19, Weather, and Rising Energy Costs: Aside from factors related to COVID-19, weather conditions, and increased energy costs, another key issue is that paper mills delayed their planned shutdowns until Q4 2020 due to COVID-19. In addition, the ongoing maintenance at paper mills has led to a supply shortage just when demand for paper was increasing dramatically, pushing prices up and creating competition for paper resources.
These factors have impacted the global paper production and trade industry, causing prices to rise daily, and it remains uncertain when paper prices will stabilize.
Prospects for Packaging Manufacturers in Vietnam in 2021
Looking at the prospects for the paper industry in 2021, VINPAS believes that paper manufacturers will face both opportunities and challenges.
Overall, in 2020, the paper industry achieved positive business results, particularly in the packaging paper sector. For example, **Ngọc Diệp Joint Stock Company** (Bao Bì Ngọc Diệp) saw impressive growth in the past year. Its packaging production plant operated at full capacity, with strong increases in production volume, maintaining a client base of large enterprises in various sectors such as food production, consumer goods, and electronics.
Raw Material Inventory at Ngọc Diệp Packaging Factory
In 2021, faced with the pressure of the paper market and the tense situation with raw material supply, packaging businesses have been struggling, unable to raise product prices enough to offset costs as customers are not easily willing to accept price hikes.
Anticipating this situation, Ngọc Diệp Joint Stock Company (Bao Bì Ngọc Diệp) proactively increased its inventory of raw materials to ensure that production could consistently meet the rising demand for orders. Particularly for large clients, Bao Bì Ngọc Diệp is confident in its ability to maintain a stable and long-term product supply, offering competitive pricing policies.
With its leading position, strong technological and financial capabilities, and 25 years of experience in the carton packaging manufacturing market, Bao Bì Ngọc Diệp continues to be a trusted partner for packaging production and printing services for both domestic and international large enterprises.
