According to Chinese customs data, Vietnam and Indonesia exported over 780,000 tons of corrugated board to China in 2018, up 243% year-on-year, accounting for 31.7% of China's corrugated board imports in that year, and the majority of the import growth came from corrugated paper.
Export to China increased at the same time, southeast Asian countries corrugated box board project investment enthusiasm.
1. Papermaking faucets at home and abroad are all in Southeast Asia
United Pulp and Paper (UPPC) is investing 8.5 billion Philippine pesos ($165 million) to build a new corrugated Paper machine with an annual capacity of 220,000 tons, with production scheduled for November 2020, according to local media reports.
The paper machine is just one of many new projects in southeast Asia for corrugated boxes.
According to the incomplete statistics of paper industry lianxun, the new capacity of wrapping paper and recycled pulp announced by China's major wrapping paper enterprises in Malaysia and Laos has reached 6-7 million tons/year, while the local papermaking enterprises in southeast Asia and investors from other countries and regions are also increasing their investment in southeast Asian countries.
2.Marubeni plans to build a corrugated cardboard project in Vietnam
Japan's marubeni corporation announced in January this year the construction of a new 350,000 tons/year corrugated box board project in Vietnam's batti-touton province, which is expected to start production in the second half of the 2020 fiscal year.
3. Nine dragons is preparing to set up factories in Malaysia and India
4. Zhejiang xinshengda built three production lines of coated white board in Malaysia
Vietnam's economic growth hit a 10-year high of 7.08 percent in 2018. The Asian development bank's recently released Asia development outlook 2019 forecasts that Vietnam's economy will grow 6.8 percent this year and 6.7 percent next year.
Announcing the new investment in Vietnam, marubeni said demand for corrugated boxes in Vietnam would grow by more than 10 per cent a year, outpacing Thailand, Indonesia and other countries.
In addition, Vietnam is expected to become the largest consumer of corrugated cardboard among asean countries in the first half of 2020, thanks to the stable economic growth brought by a large number of foreign export industries.
Fajar also said in its 2018 annual earnings report that Indonesia's consumer goods industry has attracted a lot of investment in recent years, and the food and beverage retail industry has maintained a healthy development in 2018, all with consumer demand for wrapping paper and cardboard.
It is worth mentioning that Fajar increased the export of wrapping paper to the Chinese market in 2018 due to the decrease of the amount of waste paper imported from China.
Fajar export sales accounted for 27 percent of the company's total sales in its 2018 earnings report, compared with 16 percent in 2017.