Dec 02, 2008. /Lesprom.com/. Vietnamese paper production has fallen rapidly in the last four months since its peak in July, the Viet Nam Pulp and Paper Association (VPPA) reported. Production in July reached 127,000 tonnes and then fell by 90% in August, 69% in September, 55% in October and 31% in November. It is expected to fall further next year as well, industry officials have said. The volume of inventory, however, has climbed from 2,000 tonnes in August to 140,000 tonnes in November. With such high inventory, small paper production factories have stopped operation and several private establishments have closed or suspended operations. The Viet Nam Paper Corporation and Tan Mai Paper Joint-Stock Company said they would close for maintenance in order to avoid losses. Paper exports have also fallen between 12,000 and 15,000 tonnes per month since July. Investment in pulp and paper production has also ceased because of inflationary pressures and the current economic slowdown, according to Vu Ngoc Bao, general secretary of VPPA. Tariffs on imports have also affected local production and sales. In September, tariffs on imported paper products fell from 12% to 7% for countries outside the Association of Southeast Asian Nations (ASEAN). ASEAN member countries' tariff dropped from 5% to 0% . To maintain production, local small-and medium- sized paper producers are producing goods that are currently imported. Larger Vietnamese and foreign producers are concentrating on products that require more advanced technology. Industry officials say companies could avoid closures if they improved product quality and minimised production costs.