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Exports of joss paper, earned hundreds of billions each year

In 2015, the profit of the company Lam Yen Bai agricultural products and foodstuffs to nearly 32 billion, up 85% over the previous year. Flagship product of the company is votive, paper and starch substrate.

Joss paper     

    

Joint Stock Company Agriculture Food and Forestry formerly Yen Bai Yen Bai Paper Mill was established in 1972. In 1994, the company was established and renamed the company agricultural processing and food production Yen Bai and into 2004, the equitization.

With a background as paper mills, the key products of the company include joss paper, paper substrate (paper used to make votive). In addition, the company also developed agricultural products, such as tapioca, cinnamon oil, dried cassava pulp. In particular, revenue from cassava starch product so far is the highest proportion in the revenue structure of the company.

Although not recognized as export sales, but 80-90% of cassava starch products company are exported to the Chinese market through border trade and exchange for enjoying high export tax avoidance.

Tapioca is behind the paper and joss paper substrate. Due to the characteristics and quality of votive models in Taiwan is particularly so these products can not be sold in the country. Meanwhile, the sole paper products mostly consumed domestically and only 2 years recently started to export, but the value is still low.

According to calculations, the paper substrate and gold stocks now account for over 40% of the company’s revenue, while the share of nearly 45% in 2015 and nearly equal proportion of cassava starch sales. However, a securities company said that production will not votive paper business segment capable of long-term development of the export market to Taiwan votive with limited demand and supply, the dates increasingly competitive.

Joss paper

A leader Pulp and Paper Association Vietnam (VPPA) has said, every year Vietnam exported 70,000-80,000 tons of votive paper, mainly to markets in Taiwan. According to the Dr this, “Exporting Vietnam’s paper mainly joss paper, the product had the cheapest, lowest quality and pollute the most horrible.”

Reportedly, the company is working to extend a number of new directions, such as sweet potato starch, a product with a high profit margin and valuable exports to Asian countries such as Japan, South Korea. In addition, the company also studies denatured powder processing, the intermediate product from cassava for processing into industrial paint, paper … value 1.5 times higher than starch .

First 6 months of 2016, the company achieved sales of 162 billion, down slightly from the same period last year, of which domestic sales and export earnings oanh joss paper last fall, while export sales increased insole paper more than 80% and tapioca exports increased more than 40%. On the stock market, shares of the company CAP has gained very strong and attention in recent times.