Local plastics producer An Phat aims to speed up investment in US

19-Jun-2019 Intellasia | The Saigon Times | 7:04 AM Print This Post

An Phat Holdings, a plastic packaging producer in Vietnam, attended the 2019 SelectUSA Investment Summit, which drew more than 3,000 investors worldwide to Washington D.C. from June 10 to 12.

An Phat’s participation in the summit presented plenty investment opportunities for the company in the world’s largest economy. The corporation’s general director, Dinh Xuan Cuong, earlier received a letter of invitation from the United States Embassy in Vietnam to join the event.

SelectUSA, a leading annual event held by the United States Department of Commerce, aims to expand investment opportunities and connect business operations among global business investors and economic developers. Some special guests gracing the event included Ivanka Trump, White House Adviser to the President of the US, and Larry Kudlow, director of the United States National Economic Council.

An Phat is one of the few Vietnamese businesses at this forum. In order to participate in the event, businesses had to go through a process of critical appraisal and evaluation from representatives of the US Department of Commerce and the US Embassy in Vietnam. Having engaged in active and sustainable export, trade and investment activities in the US for years, the company has gained growing appreciation from the US government. This was why the company was chosen to join the event.

The forum gave An Phat a chance to meet with various partners from the US and other countries. The company’s top executive Dinh Xuan Cuong introduced the business model and business fields of his company to partners. He especially unveiled a plan on the construction of a US-based plastics plant, called “An Phat USA.” Once in place, the plant will turn out environmentally friendly products which are made of biodegradable material, such as bags, knives, spoons, and forks.

Among the participants, Gilbert Kaplan, Under Secretary of Commerce for International Trade in the US Department of Commerce, spoke highly of An Phat’s efforts in applying green technology into its production and offering truly environmentally-friendly products to consumers. Kaplan got hands-on experience of using fully biodegradable bags, called AnEco. In addition to this kind of bags, other products of the same nature, such as cutlery, gloves and fishing nets, are granted with certification of compostable or biodegradable products from Europe’s TUV, the US’ Biodegradable Products Institute, and South Korea’s Korea-Label. (These certificates include the certification of biodegradability, no toxic content and its decomposition without producing poisonous chemicals.)

The An Phat USA plant will be equipped with more than 300 pieces of modern and advanced machinery which specialises in products made of fully biodegradable materials, and some other eco-friendly products. Its products will be made widely available on the North American market in the near term.

For many years, the US has become one of An Phat’s key markets, accounting for around 20 percent of its export revenue. Its eco-friendly line of products, particularly, has plenty of room for growth in the country, thanks to tax incentives. Coupled with the construction of the plant, An Phat will have ample opportunity for development.

Currently, An Phat Bioplastics JSC, a subsidiary of An Phat Holdings, has its own plant which manufactures products specially designed for the American market, including fully biodegradable bags, polyethylene bags and drawstring bags. The subsidiary has shipped its packaging products to over 100 countries and territories, and exports to the US alone make up more than 10 percent of its outbound sales.

An Phat Bioplastics obtained an array of positive business results in the first half of this year. Its quarter-one profit rocketed to VND214 billion, higher than the 2018 net profit while its quarter-two profit reached VND180 billion, four times higher than the year-earlier period. The results were mainly attributable to the results of packaging business, and industrial real estate at the An Phat Complex. Only after one year of renovation, the park has attracted many large investors and customers who rent land plots, factories and their respective services. Their leases help occupy nearly 60 percent of the complex’s area that had been left vacant for 10 years. Given these results, the VND510 billion profit target of the subsidiary for all of 2019 can be achievable.

“The participation of the 2019 SelectUSA Investment Summit, together with a series of An Phat’s commercial activities in the United States in recent years, has proved our serious investment intention. This is also an opportunity for us to approach our global customers more closely, and provide high-tech, environmentally friendly products,” said Dinh Xuan Cuong, general director of An Phat Holdings.

An Phat is an investment pioneer in creating closed value chains in the high-tech, “green” plastics field. The corporation has 12 subsidiaries in six main sectors, namely bioplastics, plastics in packaging, engineering plastics, household plastics, petrochemicals, and fiber, alongside its plants across Vietnam. This indicates its plans to invest in the US and expand its international business network can be feasible.

https://english.thesaigontimes.vn/69104/local-plastics-producer-an-phat-aims-to-speed-up-investment-in-us.html

 


Category: Business, Vietnam

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