Vinanet - Before the corona virus epidemic, not only the Chinese economy was affected, but the Vietnamese economy was also affected, including the paper and paper packaging industry. The following article helps the paper industry to have an objective view of the impact level to have a suitable solution.

If in 2003, the Chinese economy only contributed about 8.8% of the world economy, by 2019, this number had increased to 19.5% (in purchasing power parity (PPP)), compared to the US. accounting for only about 15% of the world's total GDP. It shows that the degree of influence of the Chinese economy on other markets is now increasing many times compared to the time of the SARS epidemic in 2003.

The demand for packaging paper may increase sharply after the epidemic
According to geographic distribution, most of China's major paper mills are 600-1,000km from Wuhan, so it is likely that production will be allowed to resume soon after the disease is under control.

However, given that Wuhan is located in the center of China and considered the "industrial lung" of China, if the disease situation does not improve in the next 7-14 days, the possibility of factories paper must continue to close is very high and the Chinese paper industry may face the following problems:

• The wave of workers returning to the factory may be delayed or suspended for an unknown deadline;
• Paper businesses face major challenges in disease prevention and security control;
• After work begins, shortages of paper materials, supplies and spare parts may be faced, and logistics service capacity and efficiency constraints;
• Demand for post-epidemic packaging paper is likely to increase sharply and prices will increase with raw material prices rising due to shortages;
• Demand for cartons, tissues and specialty paper is likely to increase, while demand for office paper is likely to decline;

It is possible that not only China is facing these problems, but many other countries also have to find ways to cope with these problems because China is an important link in the paper industry on a global scale.

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