When kết quả xổ số global plastics industry is gradually shifting toward sustainable production, another revolution is taking place among plastic businesses – kết quả xổ số “green” revolution. kết quả xổ số 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 kết quả xổ số future.
As a leading plastic Group in Vietnam with an ecosystem of 15 member companies closely following the core business of plastic, xổ số miền nam hôm nay (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 xổ số miền nam hôm nay has shared APH’s development strategy.
From kết quả xổ số decision to launch a key project in “kết quả xổ số COVID Year”…
– Sir, why did APH choose 2021 – a difficult time for kết quả xổ số Vietnamese and international economies to build this large-scale plant? Is this considered a risky “move” of APH?
kết quả xổ số green development trend has been emerging for years and is increasingly popular in many countries with policies to protect kết quả xổ số environment, reduce plastic waste, and prioritize kết quả xổ số development of green and clean materials. Right now, we realize that kết quả xổ số 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 kết quả xổ số next 3-5 years, environmentally friendly products will dominate kết quả xổ số market and gradually replace traditional products.
Besides, when embarking on any new project, we carefully consider 3 basic factors: Firstly, identifying kết quả xổ số sector and products which are trendy and potential; secondly, a substantial profit must be estimated; thirdly, kết quả xổ số market size should be large enough. At present, APH’s management board and I realize that this project is ensuring kết quả xổ số three above factors, so there is no reason for us to delay. I understand that in this project, APH will be kết quả xổ số pioneer in Vietnam, so there will certainly be many challenges, but in return, kết quả xổ số chance of success is also greater.
– Is this kết quả xổ số reason why APH decided to increase kết quả xổ số scale of kết quả xổ số PBAT material manufacturing plant from a capacity of 20,000 tons to 30,000 tons?
Currently, APH is providing kết quả xổ số 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 kết quả xổ số traditional packaging product market is converted to biodegradable resins (PBAT), kết quả xổ số upcoming plant will be just enough to meet domestic production needs. With an output of 30,000 tons, kết quả xổ số market will be able to consume all of APH’s output after kết quả xổ số plant comes into operation for one year.
– Why should it be PBAT but not another material in kết quả xổ số bioplastics industry?
kết quả xổ số cost and applicability of kết quả xổ số product are kết quả xổ số 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 kết quả xổ số price gap between these two products is kết quả xổ số lowest compared to other bio-materials. Secondly, PBAT is a material that can be industrially produced, capable of being widely used in kết quả xổ số 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 kết quả xổ số past nearly 20 years. Thirdly, kết quả xổ số PBAT market is forecasted to have kết quả xổ số fastest growing among compostable materials, equivalent to a compounded annual growth rate (CAGR) of 18.3%. PBAT is also kết quả xổ số material accounting for kết quả xổ số largest proportion (17%) in bioplastics.
– Can kết quả xổ số upcoming manufacturing plant solve kết quả xổ số material problem for APH in kết quả xổ số near future, sir?
Currently, kết quả xổ số production of APH mainly relies on imported materials. In kết quả xổ số context of global trade being affected severely by kết quả xổ số 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, kết quả xổ số construction of kết quả xổ số plant will solve kết quả xổ số problem of input materials and product prices. When kết quả xổ số price barrier is removed, kết quả xổ số price gap between kết quả xổ số single-used plastic products and kết quả xổ số compostable products will narrow, and kết quả xổ số environmental-conscious users are ready to switch to eco-friendly products.
… To kết quả xổ số goals of joining kết quả xổ số global green supply chain
– In kết quả xổ số current global scenario that still challenged by Covid-19 and kết quả xổ số pandemic is hard to control in kết quả xổ số near future, in your opinion, is it difficult to find output for green material products?
In my opinion, kết quả xổ số Covid-19 pandemic has never slowed kết quả xổ số global green transformation. On kết quả xổ số contrary, practical policies to overcome environmental pollution and policies to promote kết quả xổ số production and consumption of green products have been implemented. In APH’s traditional markets such as Europe, kết quả xổ số US, Japan, and South Korea, kết quả xổ số green transition has been speeding up. That is also APH’s target market in kết quả xổ số coming time when kết quả xổ số plant is completed.
In Vietnam, with policies to reduce, replace and restrict kết quả xổ số use of single-use plastic bags to shift to more environmentally friendly products, market potential is huge. Vietnam is also kết quả xổ số market where APH can assert its sole position in kết quả xổ số supply of green materials.
– In your opinion, how will APH’s decision to invest and expand production of green materials affect kết quả xổ số Group’s business and kết quả xổ số material market in Vietnam?
From my point of view, businesses today are facing challenges of either catching up with kết quả xổ số world’s trend or lagging behind and getting out of kết quả xổ số 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 kết quả xổ số supply of raw materials to produce environmentally friendly products. Thanks to kết quả xổ số construction of kết quả xổ số first green manufacturing plant in Southeast Asia, APH will change its position from a material-dependent manufacturer to a proactive player while promoting kết quả xổ số development of eco-friendly product manufacturing industries in kết quả xổ số coming years.
– What has APH prepared to ensure kết quả xổ số success of kết quả xổ số project from construction to operation?
There are 3 critical factors that will determine kết quả xổ số success or failure of kết quả xổ số 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 kết quả xổ số challenges of kết quả xổ số forerunner. Fortunately, we have leaders who have many years of experience in kết quả xổ số 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 kết quả xổ số company in Korea in 2018, APH has become kết quả xổ số only Vietnamese enterprise to hold kết quả xổ số patent for compostable materials. In addition, we also have exclusive production technology from Germany, kết quả xổ số formula for production is researched by leading experts in kết quả xổ số 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 kết quả xổ số project’s implementation. In addition to listing on kết quả xổ số stock exchange to raise capital, APH’s Board of Directors recently approved kết quả xổ số plan to change kết quả xổ số 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 kết quả xổ số project, especially in kết quả xổ số current context that many foreign financial investors have expressed their interest and desire to invest in kết quả xổ số project that APH is implementing.
– kết quả xổ số first step is to increase kết quả xổ số scale of kết quả xổ số green material manufacturing plant in Vietnam, and after that is kết quả xổ số plan to build a manufacturing plant in kết quả xổ số United States – What is APH planning?
After researching kết quả xổ số market and expanding kết quả xổ số supply of eco-friendly products in kết quả xổ số US market, we see that kết quả xổ số scale and growth rate of this market will be kết quả xổ số fastest growing in kết quả xổ số 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 kết quả xổ số United States, but we prioritize building factories in Vietnam first while continuing research investment opportunities and chance to set up factory in kết quả xổ số US with partners. Meanwhile, our member companies – An Phat International or AFC Ecoplastics have been established in kết quả xổ số US to promote green product trade and begin preparation to enter these potential markets in kết quả xổ số next 2-3 years.
APH at kết quả xổ số forefront of radical transformation in 2021
–As kết quả xổ số first Vietnamese enterprise to invest in green material production, in your opinion, what challenges are awaiting APH?
kết quả xổ số challenge of being a market leader is to create market for its product. At present, kết quả xổ số 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 kết quả xổ số 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 kết quả xổ số 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 kết quả xổ số most fastidious markets. kết quả xổ số price issue will soon be resolved when kết quả xổ số manufacturing plant goes into operation and APH takes kết quả xổ số initiative in materials.
– In 2021, along with kết quả xổ số plan to expand kết quả xổ số production of green material, why did APH decide to increase its ownership in An Phat Bioplastics JSC (Ticker symbol: AAA)?
AAA is one of kết quả xổ số flagship companies in APH’s business ecosystem, in charge of kết quả xổ số packaging segment that accounts for a large part of kết quả xổ số Group’s profits. Also, most of kết quả xổ số compostable materials we produce will be used as inputs for AAA’s packaging production and consequently, AAA will be kết quả xổ số biggest beneficiary thanks to kết quả xổ số 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 kết quả xổ số next 5 years?
APH aims to become kết quả xổ số leading high-tech and environmentally friendly plastics Group in Southeast Asia. Regarding kết quả xổ số traditional packaging and engineering plastics segments, we focus on stabilizing production and improving operation efficiency. Meanwhile, kết quả xổ số two new areas including compostable materials and industrial real estate will be kết quả xổ số key drivers for kết quả xổ số Group to fuel growths and enhance its position in kết quả xổ số next 5 years.
– kết quả xổ số 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 kết quả xổ số 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 kết quả xổ số overall picture of APH in 2021?
In 2021, AAA will be back on track thanks to kết quả xổ số packaging business continuing its growth momentum, kết quả xổ số industrial real estate segment will stay stable, and kết quả xổ số 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. kết quả xổ số 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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