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