When ty le keo bong da truc tiep global plastics industry is gradually shifting toward sustainable production, another revolution is taking place among plastic businesses – ty le keo bong da truc tiep “green” revolution. ty le keo bong da truc tiep rapid transition to eco-friendly products along with green production and consumption promotion policies is motivating global plastic manufacturers to map out their development strategies for ty le keo bong da truc tiep future.
As a leading plastic Group in Vietnam with an ecosystem of 15 member companies closely following ty le keo bong da truc tiep core business of plastic, An Phat Holdings (Ticker symbol: APH) has found a new direction with a strategic move: Building Southeast Asia’s largest PBAT green material manufacturing plant.
In an exclusive interview recently, Mr. Dinh Xuan Cuong – Vice Chairman and Chief Executive Officer of An Phat Holdings has shared APH’s development strategy.
From ty le keo bong da truc tiep decision to launch a key project in “ty le keo bong da truc tiep COVID Year”…
– Sir, why did APH choose 2021 – a difficult time for ty le keo bong da truc tiep Vietnamese and international economies to build this large-scale plant? Is this considered a risky “move” of APH?
ty le keo bong da truc tiep green development trend has been emerging for years and is increasingly popular in many countries with policies to protect ty le keo bong da truc tiep environment, reduce plastic waste, and prioritize ty le keo bong da truc tiep development of green and clean materials. Right now, we realize that ty le keo bong da truc tiep global green material market is in a flourishing phase although there is a shortage in supply compare to actual demand. However, it is expected that in ty le keo bong da truc tiep next 3-5 years, environmentally friendly products will dominate ty le keo bong da truc tiep market and gradually replace traditional products.
Besides, when embarking on any new project, we carefully consider 3 basic factors: Firstly, identifying ty le keo bong da truc tiep sector and products which are trendy and potential; secondly, a substantial profit must be estimated; thirdly, ty le keo bong da truc tiep market size should be large enough. At present, APH’s management board and I realize that this project is ensuring ty le keo bong da truc tiep three above factors, so there is no reason for us to delay. I understand that in this project, APH will be ty le keo bong da truc tiep pioneer in Vietnam, so there will certainly be many challenges, but in return, ty le keo bong da truc tiep chance of success is also greater.
– Is this ty le keo bong da truc tiep reason why APH decided to increase ty le keo bong da truc tiep scale of ty le keo bong da truc tiep PBAT material manufacturing plant from a capacity of 20,000 tons to 30,000 tons?
Currently, APH is providing ty le keo bong da truc tiep market with more than 100,000 tons of products per year. In 2019, we exported green products to 5 countries, and by 2020 this number has quadrupled. In Vietnam alone, we believe that if only a part of ty le keo bong da truc tiep traditional packaging product market is converted to biodegradable resins (PBAT), ty le keo bong da truc tiep upcoming plant will be just enough to meet domestic production needs. With an output of 30,000 tons, ty le keo bong da truc tiep market will be able to consume all of APH’s output after ty le keo bong da truc tiep plant comes into operation for one year.
– Why should it be PBAT but not another material in ty le keo bong da truc tiep bioplastics industry?
ty le keo bong da truc tiep cost and applicability of ty le keo bong da truc tiep product are ty le keo bong da truc tiep reason we choose to invest in PBAT. Firstly, compostable products from PBAT compounds will have production costs and prices closer to traditional plastic products because ty le keo bong da truc tiep price gap between these two products is ty le keo bong da truc tiep lowest compared to other bio-materials. Secondly, PBAT is a material that can be industrially produced, capable of being widely used in ty le keo bong da truc tiep production of compostable products that are environmentally friendly, such as knives, spoons, forks, packaging, etc. Besides, packaging product is our competitive advantage and core business for ty le keo bong da truc tiep past nearly 20 years. Thirdly, ty le keo bong da truc tiep PBAT market is forecasted to have ty le keo bong da truc tiep fastest growing among compostable materials, equivalent to a compounded annual growth rate (CAGR) of 18.3%. PBAT is also ty le keo bong da truc tiep material accounting for ty le keo bong da truc tiep largest proportion (17%) in bioplastics.
– Can ty le keo bong da truc tiep upcoming manufacturing plant solve ty le keo bong da truc tiep material problem for APH in ty le keo bong da truc tiep near future, sir?
Currently, ty le keo bong da truc tiep production of APH mainly relies on imported materials. In ty le keo bong da truc tiep context of global trade being affected severely by ty le keo bong da truc tiep Covid-19 pandemic, having to import 95% of raw materials from abroad will pose great risks to APH’s production activities. Also, our member company – AnKor Bioplastics in Korea only meets 1/10 of APH’s demand for compostable materials. Therefore, ty le keo bong da truc tiep construction of ty le keo bong da truc tiep plant will solve ty le keo bong da truc tiep problem of input materials and product prices. When ty le keo bong da truc tiep price barrier is removed, ty le keo bong da truc tiep price gap between ty le keo bong da truc tiep single-used plastic products and ty le keo bong da truc tiep compostable products will narrow, and ty le keo bong da truc tiep environmental-conscious users are ready to switch to eco-friendly products.
… To ty le keo bong da truc tiep goals of joining ty le keo bong da truc tiep global green supply chain
– In ty le keo bong da truc tiep current global scenario that still challenged by Covid-19 and ty le keo bong da truc tiep pandemic is hard to control in ty le keo bong da truc tiep near future, in your opinion, is it difficult to find output for green material products?
In my opinion, ty le keo bong da truc tiep Covid-19 pandemic has never slowed ty le keo bong da truc tiep global green transformation. On ty le keo bong da truc tiep contrary, practical policies to overcome environmental pollution and policies to promote ty le keo bong da truc tiep production and consumption of green products have been implemented. In APH’s traditional markets such as Europe, ty le keo bong da truc tiep US, Japan, and South Korea, ty le keo bong da truc tiep green transition has been speeding up. That is also APH’s target market in ty le keo bong da truc tiep coming time when ty le keo bong da truc tiep plant is completed.
In Vietnam, with policies to reduce, replace and restrict ty le keo bong da truc tiep use of single-use plastic bags to shift to more environmentally friendly products, market potential is huge. Vietnam is also ty le keo bong da truc tiep market where APH can assert its sole position in ty le keo bong da truc tiep supply of green materials.
– In your opinion, how will APH’s decision to invest and expand production of green materials affect ty le keo bong da truc tiep Group’s business and ty le keo bong da truc tiep material market in Vietnam?
From my point of view, businesses today are facing challenges of either catching up with ty le keo bong da truc tiep world’s trend or lagging behind and getting out of ty le keo bong da truc tiep race. Thus, building a green material manufacturing plant is a strategic step that ensures APH’s sustainable growth for at least 20 more years. At present, many domestic and foreign enterprises have also worked with us on ty le keo bong da truc tiep supply of raw materials to produce environmentally friendly products. Thanks to ty le keo bong da truc tiep construction of ty le keo bong da truc tiep first green manufacturing plant in Southeast Asia, APH will change its position from a material-dependent manufacturer to a proactive player while promoting ty le keo bong da truc tiep development of eco-friendly product manufacturing industries in ty le keo bong da truc tiep coming years.
– What has APH prepared to ensure ty le keo bong da truc tiep success of ty le keo bong da truc tiep project from construction to operation?
There are 3 critical factors that will determine ty le keo bong da truc tiep success or failure of ty le keo bong da truc tiep project: People, technology, and finance.
Our advantage is that we have nearly 20 years of experience in this profession and a global customer network. However, to ensure project runs smoothly from construction to operation, we must take up ty le keo bong da truc tiep challenges of ty le keo bong da truc tiep forerunner. Fortunately, we have leaders who have many years of experience in ty le keo bong da truc tiep marketplace, as well as young leaders with creative ideas and a team of enthusiastic staff.
In terms of technology, after acquiring and having ownership of ty le keo bong da truc tiep company in Korea in 2018, APH has become ty le keo bong da truc tiep only Vietnamese enterprise to hold ty le keo bong da truc tiep patent for compostable materials. In addition, we also have exclusive production technology from Germany, ty le keo bong da truc tiep formula for production is researched by leading experts in ty le keo bong da truc tiep field of compostable plastics at AnKor Bioplastics factory (Korea) and registration for patent protection in Vietnam.
Regarding finance security, APH has prepared comprehensively to ensure that its financial resources will not be depleted during ty le keo bong da truc tiep project’s implementation. In addition to listing on ty le keo bong da truc tiep stock exchange to raise capital, APH’s Board of Directors recently approved ty le keo bong da truc tiep plan to change ty le keo bong da truc tiep project structure from APH’s plant to a subsidiary’s plant. This will help open up opportunities for cooperation with investors who want to participate directly in ty le keo bong da truc tiep project, especially in ty le keo bong da truc tiep current context that many foreign financial investors have expressed their interest and desire to invest in ty le keo bong da truc tiep project that APH is implementing.
– ty le keo bong da truc tiep first step is to increase ty le keo bong da truc tiep scale of ty le keo bong da truc tiep green material manufacturing plant in Vietnam, and after that is ty le keo bong da truc tiep plan to build a manufacturing plant in ty le keo bong da truc tiep United States – What is APH planning?
After researching ty le keo bong da truc tiep market and expanding ty le keo bong da truc tiep supply of eco-friendly products in ty le keo bong da truc tiep US market, we see that ty le keo bong da truc tiep scale and growth rate of this market will be ty le keo bong da truc tiep fastest growing in ty le keo bong da truc tiep world. That’s why we have formed a human resource team, built brand image, and established relationships with customers and partners in this market.
Recently, many investors have proposed to cooperate with APH to build factories in ty le keo bong da truc tiep United States, but we prioritize building factories in Vietnam first while continuing research investment opportunities and chance to set up factory in ty le keo bong da truc tiep US with partners. Meanwhile, our member companies – An Phat International or AFC Ecoplastics have been established in ty le keo bong da truc tiep US to promote green product trade and begin preparation to enter these potential markets in ty le keo bong da truc tiep next 2-3 years.
APH at ty le keo bong da truc tiep forefront of radical transformation in 2021
–As ty le keo bong da truc tiep first Vietnamese enterprise to invest in green material production, in your opinion, what challenges are awaiting APH?
ty le keo bong da truc tiep challenge of being a market leader is to create market for its product. At present, ty le keo bong da truc tiep cost of environmentally friendly products is 2-3 times higher than conventional products. Also, we just can not change consumer habits in a day. That is a common difficulty for many green material manufacturers.
However, in ty le keo bong da truc tiep middle of every difficulty lies opportunity. APH’s advantage is having modern and exclusive production technology from Germany, production formula researched by leading experts in ty le keo bong da truc tiep field and prestigious international certification for products. Besides, we have nearly 20 years of market experience and brand reputation to confidently bring our products to ty le keo bong da truc tiep most fastidious markets. ty le keo bong da truc tiep price issue will soon be resolved when ty le keo bong da truc tiep manufacturing plant goes into operation and APH takes ty le keo bong da truc tiep initiative in materials.
– In 2021, along with ty le keo bong da truc tiep plan to expand ty le keo bong da truc tiep production of green material, why did APH decide to increase its ownership in An Phat Bioplastics JSC (Ticker symbol: AAA)?
AAA is one of ty le keo bong da truc tiep flagship companies in APH’s business ecosystem, in charge of ty le keo bong da truc tiep packaging segment that accounts for a large part of ty le keo bong da truc tiep Group’s profits. Also, most of ty le keo bong da truc tiep compostable materials we produce will be used as inputs for AAA’s packaging production and consequently, AAA will be ty le keo bong da truc tiep biggest beneficiary thanks to ty le keo bong da truc tiep material autonomy. Thus, raising ownership in AAA will add value to APH’s shareholders.
– As a multi-business corporation, besides green products, can you share more about APH’s development strategies for ty le keo bong da truc tiep next 5 years?
APH aims to become ty le keo bong da truc tiep leading high-tech and environmentally friendly plastics Group in Southeast Asia. Regarding ty le keo bong da truc tiep traditional packaging and engineering plastics segments, we focus on stabilizing production and improving operation efficiency. Meanwhile, ty le keo bong da truc tiep two new areas including compostable materials and industrial real estate will be ty le keo bong da truc tiep key drivers for ty le keo bong da truc tiep Group to fuel growths and enhance its position in ty le keo bong da truc tiep next 5 years.
– ty le keo bong da truc tiep industrial real estate sector is mentioned as a strategic segment in APH’s business plan is also an area of interest to many investors. What are APH’s orientations in this segment in 2021?
In ty le keo bong da truc tiep next 5 years, we aim to develop a huge land bank in Hai Duong, where has a favorable geopolitical position for attracting foreign investment into Vietnam. These industrial zones can create tens of thousands of jobs and are oriented to focus on attracting investment in environmental friendliness in industrial production fields such as manufacturing industries, mechanics, electronics; food processing industry and consumer goods; supporting industries, etc.
– With so many strategic moves, can you give guidelines of ty le keo bong da truc tiep overall picture of APH in 2021?
In 2021, AAA will be back on track thanks to ty le keo bong da truc tiep packaging business continuing its growth momentum, ty le keo bong da truc tiep industrial real estate segment will stay stable, and ty le keo bong da truc tiep supporting industry segment of Hanoi Plastics (Ticker: NHH) will recover post Covid-19 pandemic. Newly-consolidated businesses of AAA and NHH will also fully contribute profits from 2021. We set APH’s net profit target of VND590 billion (~$ 25 million), nearly doubling 2020’s. ty le keo bong da truc tiep net profit target in 2021 for AAA and NHH are VND550 billion (~23,5 million) and VND150 billion (~$ 6,3 million) respectively.
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