Friendship shines through difficult times

On January 11, 1969, Vietnam officially established diplomatic relations with Sweden. This is the first Western country to establish diplomatic relations with Vietnam. Bai Bang Paper Factory (now Vietnam Paper Corporation) is one of the projects considered a symbol of beautiful friendship throughout more than half a century.

Overview of Vietnam Paper Corporation

54 years ago, in the midst of the most difficult war, the Swedish state decided to support our country with 2.8 billion SEK (equivalent to more than 700 million USD) to build a paper factory. In February 1971, the first group of Swedish forestry experts came to Vietnam to survey the forests in the North. In early 1975, Bai Bang Paper Factory was started on an area of 100 hectares in Phong Chau town. The factory had the most advanced modern technology line at that time, with a design capacity of 55,000 tons of paper/year, of which 50,000 tons of printing paper, bleached writing paper, 5,000 tons of packaging paper, reaching an average level. compared to modern Swedish standards of the 70s.

Workers check product quality on a paper production line

At 11:30 a.m. on November 30, 1981, the Xeo I machine produced the first roll of paper with 80% whiteness. Mr. Duong Nguyen Thuong - the first manager of the Xeo workshop at that time fondly recalled the moment he touched the smooth, white roll of paper: "We hugged each other happily because from now on Vietnamese students do not have to write on paper. The notebook has carbon paper and smudged ink." On November 26, 1982, Vinh Phu Pulp and Paper Factory was inaugurated and went into production. November 26 becomes the traditional Bai Bang Paper Day. The period 1983 - 1990 was the period when the factory both produced and studied, from self-owned parts to full ownership. The factory’s leadership creatively applied and adapted the Swedish operating management method to the actual situation of our country at that time. The highest output at that time only reached 30 thousand tons of paper/year, not exceeding 55% of design capacity.

Finished paper rolls are transported to the warehouse

The period 1991 - 2000 recognized the independence, autonomy, dynamism and creativity of the factory collective. On April 20, 1993, the Prime Minister issued Decision No. 176/TTg to establish Bai Bang Paper Company under the Ministry of Light Industry. The name “Bai Bang Paper” was born from there and appeared in research documents about Swedish state aid to Vietnam. In mid-1990, the last group of Swedish experts withdrew to the country. Factory operation is undertaken by Vietnamese engineers and workers. By 1995, the factory produced 50.6 thousand tons/year, reaching 92% of design capacity. In 1996, paper output reached more than 57 thousand tons for the first time, exceeding the design capacity.

In September 1998, the Swedish agency SIDA assessed: "Bai Bang is a typical example of cooperation, development and is Sweden’s most successful overseas aid project." The period from 2001 to present is considered a period of transformation to overcome difficulties and reach the level of world integration. After nearly 20 years, the machinery lines have degraded, the country has opened up, and the wave of foreign paper being imported into the Vietnamese market has put the company’s leadership before the challenge of having to change itself to compete and adapt. In 2004, after investing and expanding production in phase I with a budget of over 1,000 billion VND, output reached 85.3 thousand tons of paper, bringing in revenue of 847 billion VND. In 2005, according to the decision of the Prime Minister, Vietnam Paper Corporation was formed on the basis of reorganizing the Office of Vietnam Paper Corporation and Bai Bang Paper Company. For four decades, Bang Bang Paper Company, now Vietnam Paper Corporation, has been a strong pulp and paper production center in the country. In 2023, overcoming difficulties and challenges of the world and domestic situation, paper output will reach over 111 thousand tons, bringing in revenue of over 2,500 billion VND.

A delegation of Swedish experts revisited the factory after more than 30 years

The diplomatic symbol called “Bai Bang Paper” is one of the aid projects that Sweden gives to the Vietnamese people. During 46 years, this Nordic country has provided more than 4 billion USD in aid at current prices. Sweden was Vietnam’s second largest ODA donor in the 70s, the largest in the 80s and the fourth largest in the 90s. Projects such as Bai Bang Paper Factory and National Children’s Hospital became symbol of bilateral cooperation between the two countries. “Sweden has shared knowledge and experience to support Vietnam’s transition to a market economy, helping millions of people escape poverty,” Ambassador Pereric Hogberg proudly said at the press conference on November 11. January 2019 marks 50 years of establishing diplomatic relations between the two countries.

Relations between the two countries have now entered a new phase based on the foundation of equal partnership. Two-way trade currently reaches more than 1 billion USD per year and has the potential to increase sharply in the near future. Friendship and friendship shine through difficult times and into the future.

Thuy Trang