Jeff Dilley, is the exclusvie representative of Western Pacific Pulp & Paper (WPPP), for Vietnam. WPPP shipped recovered paper in 2008, and has already shipped in 2009, to Hanoi & HCMC, Vietnam. What can we do for you?
Please call now 202.462.4200 and/or 1.702.465.7275 (cell) 0903174620 (Vietnam cell) or email exsero@attglobal.net.
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EXSERO is the Exclusive Vietnam Representative for WESTERN PACIFIC PULP & PAPER (WPPP), Los Angeles, CA, USA. EXSERO and WPPP have formed a marketing plan to service VIETNAM's needs in recovered paper. We have shipped SOP, HWS, and TISSSUE w/core to Vietnam in 2009.
Mr. Kevin Duncombe, President, WPPP, was in Vietnam, the week of September 22nd 2008, to meet with clients for recoverd paper.
EXSERO is also offering U.S. recovered and recycled metals, plastics and tire materials to Vietnam buyers.
WESTERN PULP & PAPER CAN BE SEEN BELOW and at: www.wppp.com
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RECYCLING TODAY - INTERNATIONAL TRADING SUPPLEMENT SEPTEMBER 2007
b y j e f f d i l l e y
The Pearl of Asia
Vietnam needs scrap material to fuel its surge toward industrial development.
Vietnam's economy is no longer just about agriculture. The country is
benefiting from macroeconomic momentum in industrialization and
investment in the East Asia/Southeast Asia (SEA)
region and globally, which has put it on the road to being a developed
nation by 2020.
However, when it comes to exporting scrap materials to
the nation of Vietnam, scrap companies are both new and late-comers to the county's emerging need for scrap
material.
Vietnam is a future industrial platform, being rich in
metals history and in actual mineral deposits. However, most of these
metals are being reprocessed for use outside of the country.
NAVIGATING VIETNAM
Vietnam's government operates on a one-party system that is centrally
planned. The 12th largest country (by population) in the world, Vietnam
has adopted opportunity capitalism as its industrialization and
development tool. The country, which is second only to China in GNP
growth in East Asia, is characterized by three main industrial regions:
Hanoi/ Hai Phong (north), Danang (central) and Ho Chi Minh City
(south). Vietnam must export its resources to survive and needs value
added inputs to advance.
To advance industrialization and exports,
Vietnam recently announced the merger of its Trade and Industry
ministries. According to news reports, the Vietnamese government hopes that by combining these
ministries, it will be able to streamline the management of many
industrial sectors. Korea, Japan and Taiwan have all invested in
Vietnam's industrialization, and so can North American scrap dealers.
However, scrap dealers should be aware that Vietnam's Ministry of
Natural Resources and Environment (MONRE) has much to say about 20 established categories of scrap, and
this serves as the country's scrap standards for now and directly
affect ship breaking initiatives undertaken in the country.
Vietnam's emerging scrap demand is related to its surge toward
industrial development. Vietnam plans to increase industrialization in
the country by 20 percent, which will contribute 60 percent to its GDP.
This means a drive to produce $4 billion per month in industrial goods.
Steel production in Vietnam increased this year, but still cannot meet
the country's construction, infrastructure and other metals needs.
However, imports of steel from China have emerged as a problem in
Vietnam, as it is effectively holding back steel production development
in the country, while local steel prices are rising as well.
RICH IN RESOURCES As already stated, Vietnam is rich in mineral resources, possessing
some 60 kinds, making it the seventh ranking country in the top 15 of
basic resource countries. Among the minerals Vietnam has are copper,
bauxite, zinc, titanium and iron.
The Ha Tinh/Thach Khe mine in the north of Vietnam has 1.2 billion tons
of iron, of which 300 million tons the largest amount in SEA is
useful. A $230 million joint-venture operation between Canada and
Vietnam was recently announced in the Tai Nguyen province of Vietnam.
Further, the industrial parks of Vietnam are the backbone of its
industrialization and its move beyond agriculture. The country has more
than 71 operational industrial parks, with 53 currently in development.
These industrial parks, backed by allied seaport development, will form
two corridors in Vietnam - the existing Vietnam Route 1 and the emerging
Ho Chi Minh Highway (HCMH).
However, one should be aware that
industrialization in Vietnam
currently is dependent on a local partner, wherein a U.S. scrap
exporter will need a trusted contact on the ground to develop the
country's scrap import potential in the near term. Vietnam has a
history of stand-in trading companies of all sizes and skills which
present the real buyers.
FUELED BY CAPITAL Capital markets are fueling the momentum of Vietnam's industrialization
and investment, but it is still a country with many small and medium
enterprises (SMEs). Nearly 70 foreign investment funds are looking to
begin operations in Vietnam in the near term; but, it is major foreign
and state enterprises that will influence the potential demand for
American scrap.
It wasn't Vietnam joining the World Trade Organization
in January of 2007 that pushed Vietnam as an emerging investment hub as
much as it was the Permanent Normal Trade Relations (PNTR) action by
the United States in December of 2006. The PNTR coupled with the
earlier U.S.-Vietnam Bilateral Trade Agreement (BTA) in December of
2001 has propelled Vietnam as a U.S. exporter and producer and has
attracted industrial, minerals and mining investments. In the
period 2001-2006, Vietnam's exports to the U.S. increased by eight
times, while U.S. exports to Vietnam increased by two times. Also,
mutual visits by President Bush to Vietnam in late 2006 and the recent
visit of Vietnam's President Triet to the United States in
June of 2007 have firmed the potential of the strategic partnership,
which drives foreign development interests in Vietnam along with the
country's growth.
Major foreign minerals, metals and paper interests
that use scrap commodities are already present in Vietnam.
State-owned enterprises (SOEs) now populate and dominate the ferrous
side of the scrap sales equation. But, privatization, similar to that
taking place in Eastern Europe, is on the near horizon. American scrap
exporters should address this change in Vietnam and build relationships
for the future through representative sales now.
Thus, Vietnam is an
emerging scrap market
with major foreign and U.S. investment firms focusing on investment and
development project deals there. This means that Vietnam has access to
the funds needed to industrialize as well as the push to do so in the
near term, which in turn could mean a
full range of scrap commodity sales soon; but, locally controlled
procurement is the Holy Grail.
The European scrap export community
already knows about the potential of scrap sales in Vietnam, with firms
such as ArcelorMittal, based in India, having direct representation
on the ground; Alcoa will be present in future bauxite mining.
Additionally, the American scrap recycling industry has a major role to
play, particularly in ferrous scrap sales for the Vietnam steel
industry, which is growing
exponentially as foreign investors are eyeing huge steel projects
throughout Vietnam.
The country is hot on metals and minerals, with
paper in pursuit. It has established trade associations for commodities
like steel, plastic and paper. However, it does not yet have an
organized scrap industry association.
Recyclers should approach the
current unorganized Vietnamese scrap industry with the knowledge that
everyone there is in the business of trading. Also, knowing that
Vietnam has a cultural history of conflict, one should keep in mind
that building relationships take time.
VIETNAM'S INDUSTRIALIZATION HIGHLIGHTS
STEEL: Vietnam's capacity to refine steel ingot for the
production of steel was estimated to reach 875,000 tons in 2006. Yet
the country as a whole imported some 2.5 million tons of steel ingot
throughout the year. Vietnam's policy is to increase steel making
capacity. The country has three major plant locations: Hanoi (Thai
Nguyen and Hung Yen provinces), Hai Phong City and the HCMC areas. One
half of the steel plants are in the HCMC area, with major new
developments in nearby Vung Tau, at the South China Sea. For example,
in Vung Tau, POSCO/Korea built a $361 million plant last fall, and
Vietnam Steel Corp. and India's TATA (Phu MY) and SMC are also looking
to build in Vietnam, as is Taiwan's E-United Group.
ALUMINUM: Vietnam Minerals Corp. (VIMICO) started work a year ago
on a bauxite complex for export in Lam Dong in central Vietnam that
will be capable of producing 600,000 tons per year when it becomes
operational in 2009. This venture is based on a reserve of 225 million
cubic meters, focused probably for export to Japan. Alcoa is in Dak
Nong Province (central Vietnam), and Japanese companies are in Vung Tau
(south Vietnam). Asia Packaging operates a can factory in Binh Duong
Province (in the south). Additionally, United Company Rusal has
announced a representative office in Vietnam.
The author is managing principal of EXSERO, based in Washington,
D.C. He can be contacted through his Web site at www.exsero.com or at
(202) 462-4200. Email: exsero@attglobal.net Written July 2007.
VIETNAM SCRAP/ VINA SCRAP EMERGING MARKETS: VIETNAM Institute of Scrap Recycling Industries
April 21, 2007 New Orleans, USA VIETNAM RECYCLED METAL IMPORTS SEEN RISING
NEW
ORLEANS(American Metals Magazine) --Vietnam intends to reduce its
economic dependence on agriculture by expanding its manufacturing
base—which means it will need to import more recycled metals and
materials (EXTRACT). The country has both an excellent communication system and is rich in minerals like bauxite, copper and zinc, said Jeffrey M. Dilley, chairman and chief executive officer of Exsero Ltd., a Washington-based consultant to companies looking to do business in Vietnam…and in the USA from Vietnam.
Vietnam already has become a key exporter of furniture, and is looking
to expand into energy, the automotive industry and the construction of
metal buildings.The United States normalized trade relations
with Vietnam last December. In the discussions that preceded that
decision, Dilley noted that Vietnam was an industrializing platform of
the future. The country has deregulated many of its state enterprises
and is looking to establish a series of industrial parks along two key
north-south highways in Vietnam—Route One, which runs from Hanoi to Ho
Chi Minh City (formerly Saigon), and a new highway that will be built
along what was once the Ho Chi Minh Trail, through the mountainous area
in the interior of the country.
Who is EXSERO?
EXSERO
is a private international trade and service company, based in
Washington, DC, and Vietnam. EXSERO has direct distribution and
sourcing affiliates in Vietnam, which constitute EXSERO operations in
Vietnam. EXSERO has been working in Vietnam for over 14 years.
