Paper Co: Case Study: Bai Bang Paper Company
1. Based on the SIDA's report by Blower et al., (1999), Bai Bang Paper Company (BAPACO) contributed in Vietnam's sustainability in several aspects such as forestry management, economy, and human capacity building.
a. Forestry Management
As an integrated production site, BAPACO realize that forestry is one of the major concern to make sure that the mill will keep running in a sustainable fashion. On 1986, Swedish Government made a Plantation and Soil Conservation Project consisted of silviculture and soil conservation activities which focused on industrial plantation and social also agroforestry. The project is continued on 1990-1996 under the Vietnam-Sweden Cooperation Program. The latest project is Mountain Rural Development Program funded
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From the financial and sales side, BAPACO has several challenges for a future sustainability of the paper mill. BAPACO is not financially independent due to the regulation from Vietnam Paper Corporation (VPC) that regulate the competition among other paper mills (Blower et al., 1999). In a long term, VPC’s power over BAPACO possess threat to the viability of BAPACO. SIDA's report also found that there is a low customer's loyalty towards BAPACO's products. Customers are willingly to move to another brand with better quality (mostly import product) if BAPACO's price is increase (Blower et al., …show more content…
I would make BAPACO integrated plant system as one of the role model to plan a new paper mill. The integrated system of forestry management, chemical plant, social and cultural attention, also health and well-being of the workers. The new paper mill should have a freedom to make a financial decision out of government over power it. An independent financial decision allowed the mill to increase their income that enable them to improve employees' wealth. BAPACO faces environmental contaminations problems because of the level of chlorine substances and heavy metals in the mill (Oanh and Bengtsson, 1995). In order to make the new paper mill more environmentally sustainable, it need a better waste treatment plant to decrease the level of toxicity and look for possibility to not use Chlorine in the production
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