Cp Paper Corporation (Vietnam)

The subject engages in trading kinds of paper and paper products. As our investigation, South Korea, China, Hong Kong, Japan,... are main importing markets of the subject recently. Besides, the subject also produces products on a small scale. The subject's factory started operation in Nov 2019 on a total area of nearly 4 hectares and a construction area of nearly 22,000 sqm with the main items (factory, warehouse, office…). It has a total investment of more than VND 180 billion. Since Mar 2021, Phung Vinh Hung Paper Joint Stock Company (also founded by shareholders including Ms. To My Chau, Ms. To My Ngoc, and Mr. To Van Duc) has transferred all its transactions to the subject. This company stopped operation afterward. The subject is the first local company to apply for FSC chain of custody certification. It also achieved LEED Silver Certificate for a green working environment.Mr. Dang Van Son - Vice President and General Secretary of the Vietnam Pulp and Paper Association (VPPA) said that 2023 can be said to be a difficult year for paper industry enterprises under the impact of supply far exceeding demand while consumption demand decreased sharply. This causes many businesses to only operate at about 50% - 60% of design capacity to maintain production. The unstable situation of the world's economies due to the impact of inflation, geopolitical conflicts, USD appreciation, increased interest rates and high risk forecasts of global economic recession... has been leading to many negative impacts on the economy, including the paper industry. The paper industry is currently a supporting industry for most manufacturing sectors, so when these industries are affected and decline, it will lead to a decrease in paper consumption. From September 2022 until now, businesses in the paper industry have been very difficult due to a decrease in orders.