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

On February 4th, at Hai Duong city, the Initiation Conference – Consulting Assistance Program For Supporting Industry Enterprises is organized by Hai Duong People’s Committee, Ministry of Industry and Trade and Samsung Vietnam. The conference includes the signing ceremony of Memorandum of Understanding among Hai Duong People’s Committee, Ministry of Industry and Trade and Samsung Vietnam Company on the consultancy program for Hai Duong enterprises in the supporting industry. Member of Politburo, Deputy Prime Minister, Vuong Dinh Hue witnesses and directs the Conference.

The conference is a vitally important event, contributing to the realization of Government’s Resolution no. 50 in the development of the supporting sector, especially the improvement of the localization and high technology. This is the first time a consultancy program on supporting industry development has been separately organized for one province only, with the participation of three parties, Government – Locality – Enterprise, and Hai Duong is the first selected province. The event will be a strong boost for the growth of Hai Duong’s supporting sector, in the meantime, enterprises within the province will have more business opportunities as well as strengthening their ability to join the global supply chain.

Among the country’s industrial zones, Hai Duong has a developed supporting sector, with great potential, containing favorable factors of infrastructure and resources. In recent years, the growth target in the direction of high technology and increase in the localization rate is one of the provincial government’s leading factors in the development of supporting industry, in cooperation with Samsung Vietnam. In particular, the province has a large number of Vietnamese enterprises that have participated in the supply chains of global corporations, etc. These advantages have contributed to Hai Duong being selected as the first province nationally to deploy the Consultancy Program for the supporting industry.

Among many enterprises in the province, An Phat Holdings (APH) is honored to be trusted by Government, People’s Committee of Hai Duong Province and Samsung Vietnam to be the key member contributing to the development of the supporting industry.

With more than 20 years of experience, APH is now the province’s leading enterprise in developing high technology, increasing the localization rate, especially enhancing the long-term cooperation with large multinational corporations such as Samsung, Honda, Toyota, Yamaha, Panasonic, etc. Particularly, APH has officially become a second-tier vendor of Samsung – the largest mobile phone manufacturing group worldwide from March 2019, in the meantime, APH is implementing investment activities, making systematical improvements in order to become the first-tier vendor of Samsung in the near future. Besides Samsung, APH has been trusted by many other FDI enterprises to produce products with high technological value and gray matter, contributing to the creation of globally famous cars, motorcycles or phones, machines, etc.

The long-term goals of APH are to increase the localization rate of products, develop high technology products, expand investment, and enhance its position in the global supply chain. In addition, APH continuously strengthens its production system, raises labor productivity, standardizes the quality management system according to the most stringent standards worldwide such as ISO 9000, 90001, 14001 and APH is aiming at to IATF16949 standard in the coming time.

From the outstanding experience and achievements, Mr. Dinh Xuan Cuong – Vice Chairman, CEO of APH was honored to be on behalf of hundreds of provincial businesses to deliver the speech and share at the Conference. APH Vice Chairman, CEO said that he would focus on accelerating the localization process, technology transfer and production ownership:

“In the context of localization, we have been and will continue to strive to increase the quantity of Vietnamese gray matter in producing components of phones, automobiles, motorcycles, printers and washing machines, etc, which requires a thorough and comprehensive investment in the capital, technology and manpower.

Regarding technology, we are proud to be the leading enterprise in modernizing the production in the province. We have continuously applied the modernized and cutting-edge facility system to increase the productivity and product quality. In fact, our production lines of molds, mobile phone components, printers, etc, in Hai Duong province always meet the international standards.”

Currently, APH is considered as a dominant high-tech enterprise in Hai Duong province with the most advanced factory system and equipment. In the field of supporting industry, APH has two enterprises in Hai Duong province, which are An Trung Industries & Vietnam Pattern Manufacture and Precision Mechanical Company Limited (VMC), focusing on the production of electrical and electronic components and molds. APH is currently a second-tier vendor of Samsung and also directly participates in Samsung and Ministry of Industry and Trade’s innovative consultancy program.

Besides two companies in Hai Duong, APH has another member company, Hanoi Plastics Joint Stock Company, based in Long Bien, Hanoi, specializing in supplying components and spare parts for the automobile-motorbike industry, with global potential customers like Honda, Toyota, Piaggio, LG Electronics, etc.

“The first priority of AAA in the coming year are increasing the company’s marginal profit and improving the financial health, for the purpose of delivering the most beneficial outcome to its stakeholders”, according to Mr. Pham Anh Duong, Chairman of An Phat Bioplastics (AAA)

– Mr. Pham Anh Duong, as I knew that you have just been on a business trip to USA to expand investment in this market in accordance with the new announced business strategy of AAA, could you please share something about this trip?

In early 2019, we officially announced the investment plan into USA market, providing hi-tech and environmentally friendly products.

According to statistics, USA consumes the largest amount of plastic products globally, accounting for 20% of the world in total, bigger than the total amount of Europe, as well as Japan. Besides, USA also consumes some products like knifes – spoons – forks with great amount, around 600 mil USD/year, equivalent to 60% of the world’s total demand. With such a potential market, but AAA has just exported about 10% of its products to USA. We, therefore, see that this market is really attractive.

The world in general, USA in particular, will gradually transit to the use of compostable products within the next five years. In the meantime, AAA is globally one of the few enterprises which owns high technology and patent for this line of products. Furthermore, USA government has the preferential policies for environmentally friendly products, which are better than other countries. That is the reason why we greatly want to focus on this market.

As the importance of making investment in USA market, I was assigned by the Chairman of AAA, the responsibility to directly manage and operate the company’s business activities into USA market.

– Sir, you are the Chairman of both AAA and APH, please tell us the difference between these position?

Beside AAA’s traditional plastic bag products, An Phat Holdings is the primary business unit carrying out Research and Development activities, developing new projects and products.

On the one hand, as the Chairman of APH, I have to concentrate on the corporation’s expansion projects such as compostable material projects, projects for supporting industries, etc.

On the other hand, as the Chairman of AAA, I keep focusing on the development of plastic bag products. Although these two BoDs have the shared members, An Phat Holdings does not produce internal revenues with AAA. So the two companies have relatively independent business activities.

I make sure that whatever position I hold, I will always make great effort to guarantee the benefits of the stakeholders.

– Mentioning AAA in particular, how do you evaluate the company’s business performance results in the year 2019?

In 2019, the revenue reaches over 9,300 billion VND, and the profit before Tax is estimated 600 billion VND, doubled in comparison with the year 2018.

In 2019, we focused on expanding our market to maximize the factories’ capacity, along with exploiting maximally An Phat Complex to attract new investment. Under the pressure of quick growth in 2019, finance, debt management and cash flows did not meet the requirements of BoD.

– So, you and AAA will have big plans for the year 2020?

Our first priority in the coming year are increasing the company’s marginal profit and improving the financial health, for the purpose of delivering the most beneficial outcome to its stakeholders. To do this, we do not focus on increasing the revenues, but primarily put all efforts to bring out the most beneficial sources.

Regarding business activities, AAA will enhance the productivities, as well as changing the transiting structures of the products and markets. We will concentrate on the products with higher marginal profits such as compostable products and expand our priced-competitive market to Japan and USA.

With regards to trading field: We will reduce the trading size, focusing on the customers with good financial health, as well as the suppliers with competitive prices. AAA will try to increase the marginal profit amount of this sector by 2% in the year 2020.

About Industrial Zone industry, we will try to hand over and reach the leasing rate of 100% at An Phat Complex in the year 2020.

In general, we plan to increase revenue and profit by over 10% in 2020, in which the production and business growth is over 20%.

Especially, besides the objective of revenue – profit, we set the purpose of improving the cash flows and reducing debt from 2020.

(According to CafeF.vn)