Vietnam firm Depak quadruples packaging factory investment

Depak Company Limited, based in the central province of Thanh Hoa, has received approval to increase its investment in a packaging factory from VND85 billion ($3.59 million) to VND394.2 billion ($14.74 million).

The factory, located in Bim Son Industrial Park, will produce wrinkled paper, corrugated board, packaging, other products from paper and cardboard, and plastic wood.

The project is set to become operational in 37 months after land is handed over to the firm. It will have an annual capacity of 100,000 tons of three-layer and five-layer carton packaging and 50,000 tons of plastic products.

Per an investment certificate approved in January 2021, the 2.8-hectare project had an investment of VND85 billion ($3.59 million). The factory was slated to begin operations in June 2022 with an annual output of 24,000 tons of carton packaging, 3,000 tons of paper boxes and paper bags, 150 million baby diapers and 50 million adult diapers.

Thanh Hoa’s index of industrial production (IIP) grew 12.04% year-on-year in July, according to provincial data. The growth was driven by a 10.42% increase in the mining sub-sector, 8.52% in manufacturing-processing, 89.23% in electricity production and distribution and others. Some segments that underperformed were beer, down 11.3%, construction bricks down 10.7% and tobacco down 5.2%.

In January-July, the index increased 7.74% year-on-year. However, the number of workers in the industrial sector dropped 11.64%, partly due to the slump in textiles-apparel and footwear sectors as export markets weakened.