Alongside driving the company to profit breakthroughs by boosting the manufacturing sector, in the upcoming phase, we will focus on R&D for more new products to diversify our portfolio of green products and swiftly dominate the export market, said Nguyen Le Thang Long, President of An Phat Bioplastics (HOSE: AAA).
Having served as the President of An Phat Bioplastics JSC (AAA) since June 2022, Nguyen Le Thang Long, a French national with a PhD in science, is well-known as the young leader of An Phat Bioplastics, contributing to positioning the company towards developing environmentally-friendly products.
After nearly 2 years of dedication to advancing green development, focusing on environmentally friendly product lines to boost AAA’s growth, Long stated that alongside restructuring the manufacturing and commercial sectors to propel AAA’s profits, in the near future, the company will concentrate on R&D to diversify its portfolio of green products and swiftly capture export markets.
The President of AAA’s Board of Directors has shared insights into the company’s direction and strategy for the new phase.
AAA plans to open additional factories and increase production scale
Sir, it is known that as of the end of the first quarter, An Phat Bioplastics secured a record post-tax profit of 144 billion VND, the highest since the second quarter of 2019. What are your thoughts on this impressive profit level?
The results of the first quarter of 2024 reflect the outcome of an extended restructuring process following the Covid-19 pandemic. During this time, we focused on restructuring our product portfolio, optimizing production costs, and scaling back inefficient commercial and manufacturing sectors.
Thanks to this strategy, AAA’s gross profit margin has sharply recovered from a low of 7.1% in 2022 to 18.5% in Q1 this year. This figure is expected to further improve in the future due to innovative production ideas and expansion into higher value-added product categories.
Having served as President of AAA during what is considered an economic downturn, when businesses in general, including AAA specifically, face numerous challenges, what do you see as the growth driver for AAA during this period?
The growth momentum comes from our strategy to expand production. Currently, all projects that An Phat Bioplastics has invested in over the past five years are operating at full capacity. Therefore, we plan to expand the capacity of current products such as packaging, interior plastics, technical plastics, focusing on high technology and environmentally friendly products.
AAA’s goal is to open at least one new factory each year, contributing at least 15% to the current production revenue, aiming to double production capacity by 2030. This will be the driving force for AAA’s growth in the next phase.
Emphasizing environmentally friendly products
What plans does An Phat Bioplastics have in the medium and long term to assert its position in the Vietnamese market first and then expand its market share for green products globally?
In addition to continuing to expand production capacity and markets related to completely compostable products, we are also focusing on R&D for other products such as recycled products, paper packaging, and other environmentally friendly products.
In addition, we are also committed to enhancing communication and marketing activities for our green products in both domestic and international markets to affirm our leading position and expand our customer base.
In addition to the packaging and compostable product sectors, An Phat Bioplastics also has a strategic business in industrial real estate. What plans do you have to improve this sector in the coming time?
Industrial real estate is a sector with good profit margins, however, it takes time to find a potential project. We are giving priority to expanding industrial parks in convenient locations to attract customers. Recognizing the increasing demand for factory rentals amidst limited land availability, we are also studying the model of constructing factories for rent to meet this demand.
We’ve learned that you resigned from the Board of Directors of An Phat Holdings (APH – the parent company of An Phat Bioplastics) to dedicate more attention to overseeing An Phat Bioplastics. Could you please elaborate on this decision?
Currently, in addition to my role as President of AAA, I am also responsible for developing new products across the entire An Phat Holdings, particularly focusing on environmentally friendly products. Furthermore, I oversee the training and support of our export sales team, ensuring their familiarity with new products to encourage customers to adopt green products.
Therefore, to concentrate on research and core responsibilities, I stepped down from the Group’s Board of Directors. I will continue serving as Deputy CEO of APH and as a member of the Group’s Executive Committee.
Thank you!
