In the afternoon of July 30, within the framework of the Hai Duong – Korea Economic Forum, the delegation consisted of: Deputy Minister of Foreign Affairs Le Hoai Trung and other related departments; Ambassador Extraordinary and Plenipotentiary of the Socialist Republic of Vietnam in South Korea – Mr. Nguyen Vu Tung; Ambassador Extraordinary and Plenipotentiary of the Republic of Korea to Vietnam – Mr. Park Noh Wan; Deputy Secretary of Hai Duong Provincial Party Committee – Mr. Trieu The Hung; Standing Vice Chairman of Hai Duong Provincial People’s Committee – Mr. Vuong Duc Sang; Director of Hai Duong Industrial Zones Management Board – Mr. Pham Minh Phuong; representatives of the Korean Chamber of Business in Vietnam (KOCHAM); Korea Trade-Investment Promotion Agency in Vietnam (KOTRA) etc paid a visit to An Phat Bioplastics factory in An Dong Industrial Park, Nam Sach District, Hai Duong Province.
Today, An Phat Holdings (Ticker Symbol: APH) organized “Roadshow APH: Leading Plastics Group – Pioneering The Green Trend.” Attending the seminar, on behalf of An Phat Holdings, there were Mr. Nguyen Le Trung – Vice Chairman of the Board of Directors; Mr. Dinh Xuan Cuong – Vice Chairman, Chief Executive Officer; Mr. Pham Do Huy Cuong – Member of the Board of Directors, Standing Deputy General Director, Chief Financial Officer; Ms. Nguyen Thi Tien – Member of the Board of Deputy General Director; on behalf of the Ho Chi Minh Stock Exchange, there were Ms. Tran Thi Thuy Linh – Deputy Director of HoSE’s Listing Management and Appraisal Department together with more than 200 investors, domestic and foreign enterprises.
At the Roadshow, An Phat Holdings’ Board of Directors met and discussed with investors to introduce the potential of APH stock as well as sharing information about the business situation, activities and upcoming development plans before officially listing on the Ho Chi Minh Stock Exchange on July 28.
Currently, An Phat Holdings owns three listed companies, namely Hanoi Plastics Joint Stock Company (Ticker symbol: NHH) and An Phat Bioplastics Joint Stock Company (Ticker symbol: AAA) and many other member companies. , An Phat Holdings (APH) has over the past twenty years created a closed business ecosystem that allows the maximum exploitation of available products and services with 15 member companies.
Speaking at Roadshow APH, Mr. Dinh Xuan Cuong – Vice Chairman and Chief Executive Officer of An Phat Holdings said: “In order for APH shares to have high liquidity and transparency, we are now officially listing stocks of An Phat Holdings (Ticker Symbol: APH) on the HoSE – the largest and prestigious stock exchange. Hopefully, listing on HoSE will help us open up the opportunities to mobilise capital and finding great cooperation partners in the coming time.”
Listing stock on HoSE is the first step of An Phat Holdings to mobilise capital for the first compostable material manufacturing plant in Vietnam that will provide sufficient material for both domestic and international market. In addition, thank to the compostable material manufacturing plant, APH will have self-supply in raw materials, save production costs about 30% for subsidiaries while the parent company still enjoys a gross profit margin of 25-30% of this project.
The construction of the plant is expected to start at the beginning of 2021 at Hai Phong, with an 18-month construction period, completed by 2022, with a capacity of 20.000 tons per year. When the plant comes into operation, the profit from compostable products is expected to rise from 10% currently to about 40 – 50% in APH’s packaging revenue.
After Q&A session, investors were answered questions regarding the growth strategy, profit margins of each segment, especially the plan to construct compostable material manufacturing plant. In the context that the demand for bioplastics continues to increase in many industries, the construction of AnBio compostable material plant is determined to be a strategic move, creating a breakthrough development for APH.
In 2019, APH’s consolidated revenue and profit after tax increased impressively at VND 9,513 billion and VND 712 billion, equivalent to 19% and 305% compared to the same period in 2018. The successful IPO auctioned 4,3 million shares, equivalent to 3% of the stake, helped APH raised VND 215.08 billion. After the IPO, the company was valued at over VND 6,600 billion.
In 2020, APH plans to issue 20 million new shares, equivalent to 14% of the outstanding shares. APH also targets revenue and net profit of VND 12 trillion and VND 650 billion. In the long term, APH’s driving force will come from compostable products by investing in the construction of the plant. The total capital needed for AnBio compostable material manufacturing plant is over USD70 million. The company seeks to raise about 80% of the needed capital in 2020 while the remaining 20% will be raised next year mainly from commercial loans or straight bonds.
With the expansion of production scale, positive cash flow forecast, transparent information and good credit history, APH looks forward to cooperating with strategic investors in the coming time.
PR DEPARTMENT – AN PHAT HOLDINGS
PR Executive: Le Minh Duc
Mobile: 096 8325 393
Thanks and Best regards.
On June 4th, 2020, An Phat Bioplastics JSC (AAA) – a subsidiary of An Phat Holdings (APH) was honored to welcome the delegation of Advisory Council for Science, Education & Environment under Central Committee of Vietnamese Fatherland Front to visit its factory.
The delegation included several leading scientists in Vietnam such as: Prof. Ph.D Nguyen Lan Dung, Prof. D.Sc. Tran Dinh Long, Assoc. Dr. Vu Hao Quang, Assoc. Dr. Pham Van Nghe, PhD. Nguyen Nhat Hai, etc, together with representatives from Central Propaganda Department and the press agency of Central Committee of Vietnamese Fatherland Front.
Mr. Dinh Xuan Cuong – Vice Chairman, CEO of APH along with many senior leaders and managers welcomed the delegation.
In addition to visiting the manufacturing factory of compostable products, the seminar on the topic of “Compostable materials and applications in An Phat Holdings’ production and trading activities” took place with the lively discussion of Vietnam’s leading scientists in this field.
At the seminar, Mr. Nguyen Le Thang Long – Director of APH’s Research and Development Center gave an introduction on raw materials, production processes and compostable products that APH, AAA are currently researching and trading. On behalf of the delegation, Prof. Dr. Nguyen Lan Dung proposed strengthening the cooperation between APH and the Council to promote the compostable product line. At the same time, he also suggested that Vietnamese Fatherland Front should have seminars at the national level to propagate about APH’s environmentally friendly products.
On behalf of APH, Mr. Dinh Xuan Cuong – Vice Chairman, CEO reviewed the report and thanked the scientists for their interest in the compostable products of APH, and APH hoped to receive their support to propagate, raise the awareness of Vietnamese people on choosing products that are safe for human health and environmentally friendly.
The Covid-19 outbreak has significantly changed the consumption habits of people all around the world as well as drastically influencing the global supply chain. In the first quarter of 2020, there was a Vietnamese enterprise specializing in manufacturing compostable products not only increasing the quantity but also the sales volume, receiving more orders from the US and Europe.
“At the moment, An Phat Holdings (APH) is confident with its capacity and competitive position to move to a new development stage with several investment projects focusing on key areas of compostable products & compounds, packaging, engineering plastics & building materials plastics, raw materials & chemicals for plastics industry, precision engineering & molding, industrial real estate, etc.” said Mr. Pham Anh Duong – Chairman of An Phat Holdings. An Phat Holdings will carry out Initial Public Offering (IPO) and have it shares listed on the stock exchange in 2020 to raise capital for the project of producing AnBio compostable material, taking the initiative in input materials along with reducing the product costs.
1. The only Vietnamese enterprise holding the patent for manufacturing compostable materials and the plan for IPO in 2020
Q: APH has been active in multiple sectors, including compostable products, supporting industries, packaging, logistics, etc. So what is the key sector contributing enormously to APH’s growth?
– APH has developed a closed ecosystem by taking the initiative in its input materials and outputs. AAA, our member which produces packaging and compostable products, accounts for almost 90% of APH’s revenue.
About compostable products, we have AnEco which are on shelves of many supermarkets, restaurants, hotels nationwide. The products have been also exported to many countries as they meet international standards.
About input materials, we cooperated with a South Korean partner, one of the five companies in the world holding the patents on compostable materials. Thus, APH has become the unique enterprise in Vietnam to produce such products. The building of the PBAT plant is aimed at reducing the selling prices of our products.
In the packaging sector, APH has developed subsidiaries. Of which, we have AAA is the producer and others are provider of materials and product trader.
In the supporting industries, APH has set a target to develop a value chain in the plastics industry and become a leader in the supporting industries in Vietnam. APH owns five companies serving its plan to take part in the global value chains.
Q: Can you share your plan to build a polybutylene adipate terephthalate plant?
-We have raised capital for a project to build a plant of polybutylene adipate terephthalate (PBAT) since 2019 and will start work on the project next year. The plant, when put into operation, will help An Phat Bioplastics (ticker: AAA), a key member of APH, produce compostable materials meeting the strictest international requirements on the environment protection. Once AAA can produce materials by itself, the selling prices of its products will be reduced.
The plant will be built within 18 months and completed by 2022, with an annual capacity of 20,000 tons and an investment of nearly VND1.5 trillion. APH sets a target that the revenue from its fully compostable products will account for 40%-50% of AAA’s total in 2023.
Q: How can the company mobilize capital for the project? Is it from the company’s IPO?
– As I have mentioned before, APH has raised capital for the project since 2019. However, many investors have expressed their interest in the company’s IPO, so APH has decided to launch an IPO this year to attract more investors. The company is working with the HCMC Stock Exchange on the IPO plan.
Q: Is the company confident about its plan to raise capital this year when the whole world is facing difficulties?
– Despite difficulties in the global market, our sector has not been affected much. On the contrary, AAA has received more orders from partners in America and Europe for its packaging products, bags, knives, spoons and forks as these are essential products for daily life.
APH has raised its foreign ownership cap to 100% and has completed negotiations with some strategic financial investors on their ownership in the company.
2. Ideal opportunity to expand market
Q: With the plan to build the PBAT plant for manufacturing AnBio compostable materials, how will the initiative in materials help APH develop sustainably?
– We are determined to develop APH into a leading hi-tech and environmentally-friendly plastics firm in Southeast Asia. All product development and production and business expansion plans must be aligned to this goal. The IPO and the PBAT plant project will help us take the initiative in input materials, which is the key to APH’s sustainable development in the coming periods.
In order to reduce the use of disposable plastic products, the Government will hike the environment protection tax rates on enterprises producing these products, hereby raising the prices of these products. Meanwhile, when we take the initiative in input materials, the prices of compostable products will be cut nearly to the prices of common plastic products, so consumers will be willing to use environmentally-friendly products.
Q: APH is the first Vietnamese enterprise to successfully produce fully compostable products meeting international standards. What is the company’s strategy in the local market?
The green consumption trend is developing strongly worldwide
In Vietnam, the Government is also working on a plan to reduce consumption of single-use plastic bags in supermarkets, restaurants and markets, so this is a potential market for APH.
We are focusing resources on the domestic market and expects the Vietnamese market will contribute 15% of the firm’s total revenue from production by 2023.
Q: How will APH access new partners in the supporting industries?
We have a plan to increase the number of accessories provided to existing partners. For example, we produced just a few accessories for Toyota 10 years ago but 30 accessories at present. When manufacturers tend to increase the localization rates of their products, we will have more orders to increase production of accessories for these partners.
In addition, the company will access new partners. As we have cooperated with firms which are well-known worldwide, such as Honda, Toyota, Samsung, LG and Panasonic, we will have more opportunities to work with other new partners.
Q: APH has recently ventured into the industrial real estate sector. Will the company develop other industrial parks or only the 45-hectare An Phat Complex?
-Some partners have worked with us on leasing land lots. In the second quarter of this year, APH has transferred some land lots and will continue transfer the remaining land lots in the An Phat Complex until the end of 2020.
Besides the An Phat Complex, we will invest in the Quoc Tuan-An Binh industrial park project, which will be 180 hectares large. We will clear the site for the project at the end of this year and put the project into commercial operation next year.
Q: The “China +1” trend is widely mentioned currently, what will APH do to catch these opportunities?
Both An Phat Complex and Quoc Tuan-An Binh industrial park are located on ideal positions in the northern key economic region, which is attractive to investors.
Especially, we offer one-stop services for all customers. APH, with experienced consultants, will support customers in finance, human resources, supporting industries, administrative procedures, business registration, customs and transport.
Our long-term objective is to develop these two industrial parks into hi-tech and eco-friendly complexes.
3. An Phat Holding will become the Southeast Asia’s leading high-tech and environmentally-friendly plastic group
Q: In 2020, APH still sets a higher profit target compared to 2019, what is the reason for the company’s confidence in its production and trading situation? In the last Covid-19 outbreak, did the company suffer any effects while the proportion of APH’s exports was still quite high, and regarding the supporting industries, especially the car and motorcycle sector, slowed down in the first quarter due to the epidemic?
In the first quarter of 2020, APH’s core subsidiary, AAA, did not experience any drop in quantity or even had an increase in the compostable product segment. The current epidemic will promote e-commerce, the shift of consumer trends from eating at restaurants to ordering fast food, which promotes the need to use gloves, knives, spoons, forks, etc.
In the supporting industry, Hanoi Plastic Joint Stock Co.,ltd (NHH) mainly serving the automobile and motorbike sector, has also been affected due to some customers’ production suspension. We expect the second half of the year will be a time of strong growth for AAA and NHH.
Furthermore, this year’s industrial real estate segment has maintained as stable as the previous year, expected to contribute 7% of revenue and 20% of profits to the total company’s.
Q: Your ambition of in the next 5 years?
-Since its foundation, our key member AAA has set an objective to become the largest plastic packaging enterprise in Southeast Asia and has now become such a company. From that, our next step is to become the largest bioplastics group in Southeast Asia withing the next 3-5 years, pioneering in the value chains, along with establishing and developing a sustainable business ecosystem.
Q: What steps does your company take to realize this ambition?
-In the short to medium term, we continue expanding our market share of compostable products in both foreign and domestic markets. We currently focus on the US market, strategically cooperating with US investors to expand the product range of bags, knives, spoons, forks, etc. Currently APH’s products are available in several major fastidious markets globally such as France, Romania, Italy, Australia, United States.
In the domestic market, we are presently focusing on retail channels, including Horeca and B2B channels.
APH’s partners all have strategies to expand the use of environmentally friendly products, our prospects in this area are very bright.
In the long run, by taking the initiative of environmentally-friendly materials, we can expand the market and reach the majority of customers. In particular, I expect the domestic market to grow stably, compostable products will quickly change the consumer habits when prices are significantly reduced.
In the supporting industry, we will diversify our customers outside the automotive – motorbike segment by increasing our business development with FDI electronics enterprises.
FAST500 Awards – Top 500 fastest growing enterprises in Vietnam was announced recently. Accordingly, An Phat Bioplastics JSC (An Phat Bioplastics) officially entered the Top 30 Vietnam’s fastest growing enterprises in 2020.
On May 20th, FAST500 Awards – Top 500 fastest growing enterprises in Vietnam in 2020 was officially announced. An Phat Bioplastics was ranked among Top 30.
The FAST500 Awards are ranked based on the research results and evaluation on the Compounded Annual Growth Rate (CAGR) in terms of revenue and business performance. In addition, some other criteria such as total assets, total employees, profit after tax and social medial reputation are also used as a supporting factor to determine the size and position of the enterprise in the industry.
Over the 10 consecutive years of publication, FAST500 Awards has been organized by Vietnam Report and VietnamNet Newspaper. This is considered as one of the prestigious rankings marking and honoring the relentless efforts of Vietnamese enterprises as the driving force for growth of the whole economy.
According to those criteria, being honored in the Top 30 (exceeding 163 levels compared to 2019) is a significant improvement of An Phat Bioplastics, especially in the context of the Covid-19 disease outbreak. This is evidence of An Phat Bioplastics’ great effort in manufacturing activities, constantly researching and developing many new products, bringing practical values to customers and partners.
Over the past few years, An Phat Bioplastics has maintained a stable growth of business results with consolidated net revenue in 2019 of nearly VND 9,300 billion, setting a target of VND 10,000 billion revenue in 2020. Besides maintaining its position as the No.1 manufacturer and exporter of thin monolayer film in Southeast Asia, An Phat Bioplastics is also known as a pioneer in the development of compostable products, 100% environmental friendliness.
An Phat Holdings is one of the few enterprises in Vietnam and the world that are using state-of-the-art technology and inventions to compostable products.
The Coronavirus disease (COVID-19) has appeared since the end of 2019, and kept a huge outbreak in early 2020, which has caused a negative impact on Vietnam and many other countries’ economy and social life.
Known as the leading enterprise in the field of manufacturing high-tech and environmentally friendly plastics in Southeast Asia, An Phat Holdings currently has 15 subsidiaries, more than 5,000 employees and factories, and offices throughout Vietnam such as Hanoi, Hai Duong, Hung Yen, Yen Bai, Ho Chi Minh City, Long An, etc. At the same time, An Phat Holdings products are exported to more than 60 countries and regions over the world.
Therefore, the safety assurance of products and workers is An Phat Holdings’ top priority in the complicated situation of the Covid-19 outbreak.
With the motto of “Safety for production and products”, accordingly, An Phat Holdings has maintained a drastic and serious attitude against Covid-19 disease from its headquarters, offices to factories.
From the end of December 2019 to January 2020 when the disease broke out in China and increased the risk in Vietnam, An Phat Holdings established a number of disease prevention committees in all subsidiaries, branches, representative offices, factories, etc., to quickly respond to the Covid-19 related situations
Preventive measures have been strictly implemented by all employees such as: Requiring all employees to wear masks, wash, disinfect their hands, and measure their daily temperature; propagating and timely updating the latest information about on the COVID-19 disease; strictly controlling business trips of all staff, and corporate activities, etc.
Particularly, for the production segment, An Phat Holdings considers this as the focus needing the highest level of attention. In addition to the general measures, An Phat Holdings has applied some other methods like: Ensure the standard distance of minimum 2m2 for workers at factories; Measure temperature for all employees and require all of them to sanitize their hands before and after the shift meals, etc.
With all the preventive measures applied strictly and thoroughly, An Phat Holdings hopes that there will not be any infected cases or suspected cases of within the organization.
Let’s watch the following video clip to further understand An Phat Holdings’ preventive measures to the Covid-19 disease.
• Plan for 2020: Revenue of VND 10,000 billion, profit after tax of VND 550 billion.
• Expected dividend payout ratio of 15%
• Approving APH of increasing AAA’s ownership to 65%
• Propose a maximum purchase of 15% of treasury shares
On 25th March, 2020, at Hai Duong, An Phat Bioplastics JSC (Ticker AAA) successfully organized the 2020 Annual Shareholder Meeting at An Phat Bioplastics’ factory, Hai Duong province.
The meeting reviewed its 2019 business performance and approved the 2020 business plan, as well as the reports related to the its management and operation activities.
Revenue in 2019 reached VND 9,258 billion, increasing by 16% over the same period
– Regarding business results, the whole year’s packaging output reached 94,110 tons, increasing by 9% over the same period. The consolidated net revenue reached VND 9,258 billion, going up 16% over the same period, the consolidated profit after tax reached VND 491 billion, increasing by 132% compared to 2018, reaching 98.43% compared to the original plan.
– The revenue in 2019 was lower than expected due to a 20% drop in plastic resin prices in 2019, but remained a strong growth rate mainly due to the company’s expansion of the industrial real estate business with the An Phat Complex project. Specifically, in 2019, the revenue from the sales and lease of industrial park land reached VND 707 billion, contributing 7.58% of the total consolidated revenue.
– In 2019, the company also boosted the packaging production, dominating the market by the increased capacity of two packaging factories (Factory No. 6 and Factory No. 7), along with a Calbest and stone powder plant. In particular, the revenue from semi-finished products reached VND 4,018 billion, an increase of 6% compared to 2018.
In general, in 2019, AAA’s production and trading activities have been maximized and gained significant achievements in the new field – industrial real estate.
Expected dividend payout ratio of 15%
Through this meeting, AAA is expected to have a dividend payout ratio of 15%, of which, 10% will be paid in cash and 5% in shares to ensure the long-lasting benefits for shareholders and the sustainable development of the company.
Dividend payout is expected to be carried out by AAA in Quarter II / 2020.
Approving An Phat Holdings (APH) of increasing AAA’s ownership to 65%
The meeting also approved a proposal to allow APH to increase its ownership ratio in AAA from 51% to 65% in 2020. In addition, the company also suggested a plan to repurchase up to 15% of the shares as treasury shares for the purpose of finding a strategic resale partner with a price not lower than the book value of AAA.
2020 strategy – Continue to develop green products, promote the compostable product line
By 2020, AAA will achieve VND 10,000 billion of the consolidated revenue and VND 550 billion of the consolidated profit after tax. In addition to the production improvement, the company has strategies for all business areas as follows:
– The product structure and revenue: with plastic products, the net revenue in 2020 is planned to grow strongly by 18.4% to VND 4,700 billion; partly due to a 4.4% increase in sales volume to 100,000 tons. In particular, compostable bags will be the main growth engine of this segment, and traditional products will be gradually replaced by compostable products including: bags, knives, spoons, forks, gloves, etc. The expected plastic product profit is VND 330 billion, contributing 60% to the total profit plan.
– Trading segment: Trade revenue is planned to be flat, is VND 4,600 billion (increase by 2.4%). Trading activities will continue to be restructured to reduce short-term receivables and improve the profit margins. Accordingly, AAA expects to increase the gross profit margin of the trading segment from 2.6% to 3.5%. The company sets a target of VND 40 billion in profit from trading, contributing 7.3% to the total profit plan.
– Market expansion: Focusing on big foreign markets in Europe, Australia, especially Japan and the United States. The EU is currently AAA’s largest market, contributing 50% of its plastic bag revenue in 2019. In addition, thanks to the EU-Vietnam Free Trade Agreement (EVFTA), the import tax of Vietnam’s plastic bags into the EU at a tax rate of 3% will be removed, which will create a significant competitive advantage for AAA, especially when compared to the 6.5% import tax imposed on Chinese plastic bags when imported into the EU market.
– Industrial real estate: The company plans to achieve a net profit of VND 180 billion, contributing 32.7% to the total net profit. An Phat Complex Industrial Park is expected to reach 100% leasing rate in 2020 (currently 65%), thereby setting an industrial park revenue target of VND 700 billion. Furthermore, the company will invest in another industrial park in Hai Duong named An Binh – Quoc Tuan, phase 1 is expected to be 180 hectares wide and will be put into operation by the end of 2020.
At the meeting, shareholders were interested in the issue of 50,000 ESOP shares at VND 17,000 / share while canceling the 5% ESOP program at VND 10,000 / share in 2019, AAA General Director – Mr. Nguyen Le Trung said: “The application of ESOP for 50,000 shares at book value is the right to buy shares, which balances the interests of existing shareholders and the company employees. If effective, we can both ensure the benefits of shareholders and employees”.
The purchase of treasury shares, in his opinion, is immediate to support the stock price when it is too low compared to the real value. The ultimate goal is to find the strategic partners and transfer them at the price not lower than book value. This is still in the negotiation stage, so it has not been disclosed in details.
Regarding the impact of the COVID-19 disease outbreak on the company’s business performance, Mr. Trung said that the company’s products are essential, related to food and health, so it is less affected. Ms. Hoa Thi Thu Ha, Deputy General Director in charge of finance said that the company’s output in the first 2 months grew by 7.6% compared to the same period in 2019.
The AAA 2020 Annual Shareholder General Meeting was successfully organized.
On 17 Mar 2020, An Phat Holdings and its employees are present at the People’s Committee of Truc Bach Ward (Hanoi) to give thousands of AnEco compostable paper cups to 300 residents and workers on duty in the isolation area of Truc Bach. This is a significant activity of An Phat Holdings in general and AnEco compostable brand in particular in an effort to join hands with the public to prevent and control Covid-19 disease. Through this, An Phat Holdings wishes to go along with people in the community to get rid of the corona virus by using a paper cup daily.
AnEco compostable paper cups of An Phat Holdings have obtained some international leading quality and safety standards such as Din-certo of Germany (for the production of AnBio compostable materials), SGS of Switzerland (for safety and health standards), OK Compost of Austria (for environmental friendliness).
After this activity, An Phat Holdings and AnEco brand also plan to sponsor disposable products for other isolated residential areas to spread a spirit of sharing and caring within the community, going together against Covid-19.
On behalf of Truc Bach Ward People’s Committee, Mr. Hoang Duc Thang – Secretary of Truc Bach Ward Party Committee expressed his sincere thanks to Board of Directors and An Phat Holdings’ community for their care and attention to residents and workers on duty in the isolation area on Truc Bach Street.
In addition to business activities, AnEco has enthusiastically responded to, organized and participated in a number of activities to propagate the green lifestyle as well as environment protection across Vietnam, some activities like joining hands in clearing Vung Tau beach, taking part in the campaigns for a green – clean – beautiful environment in Hai Duong, Earth Day Compostable, for a cleaner Hoi An, challenges to change, etc.
By entering into co-operation with US partners Ford Motors, US International Development Finance Corporation (DFC), and The Asia Group, An Phat Holdings expects to accelerate its expansion to the North America market.
On March 3, An Phat Holdings held a working session with Ford Motors, Samsung, DFC, and The Asia Group to discuss co-operation strategies. Especially, it discussed with The Asia Group about developing biodegradable products in the North America market.
The US is considered one of the key markets of the group, which accounts for 10 per cent of the revenue of its packaging segment. In early 2019, An Phat Bioplastics, a member company of An Phat Holdings, announced plans to invest in the construction of an environmentally friendly bag manufacturing factory in the United States in order to meet the increasing demand for this kind of product in the next five years.
At present, the group is one of the few manufacturers who hold technologies and copyrights in this segment. Furthermore, the US government’s incentives for environmentally friendly products are head and shoulders above other countries, which will set the group up for success in the North America market, especially the US.
Pham Anh Duong, chairman of An Phat Holdings, said, “The group established a co-operative relationship with Samsung and has the same manufacturing area as Ford (the manufacturing facilities of both groups are located in Hai Duong province). We expect that the co-operation will continue outside Vietnam.”
In recent years, the group has increased investment in the supporting industry, high-tech sectors, while simultaneously increasing the localisation ratio of its products. It is currently a vendor of Samsung and provides components for automobiles and motorcycles.
In Hai Duong, An Phat Holdings is a leader in the project to develop local supporting industries implemented by the Ministry of Industry and Trade, Hai Duong People’s Committee, and Samsung Vietnam.
In addition, the group is a leading industrial real estate developer in Hai Duong. Accordingly, An Phat Complex is not only a production base but also a manufacturing facility for large foreign groups. After two years in operation, the occupancy rate reached 65 per cent and is expected to reach 100 per cent by the end of this year.
Furthermore, the group plans to invest in another industrial zone in Hai Duong named An Binh-Quoc Tuan. The construction of the first phase will be implemented on an area of 180 hectares and is expected to finish by the end of the year.
The group develops green, high-tech industrial parks that offer full utilities to lure in foreign investors, including the wave of US investors relocating to Hai Duong.
Source: VIR Online