Green products key for An Phat Bioplastics to dominate market: chairman

An Phat Bioplastics JSC, listed on the Ho Chi Minh Stock Exchange (HoSE) as AAA and a subsidiary of Hanoi-headquartered An Phat Holdings, will focus on researching and developing new products to diversify its green product portfolio and quickly dominate export markets, said its chairman Nguyen Le Thang Long.

In the first quarter of 2024, An Phat Bioplastics posted after-tax profit of VND144 billion ($5.67 million) - the highest since the second quarter of 2019. What can you tell us about this impressive figure?

The Q1 performance was the result of a long restructuring process after the Covid-19 period. We have focused on changing the product structure and optimizing production costs, as well as scaling down our commercial business and ineffective production segments.

Thanks to that strategy, AAA’s gross profit margin recovered strongly from the lowest level of 7.1% in 2022 to 18.5% in Q1/2024, and will continue to improve in the near future thanks to production improvement as well as expansion to products with higher added value.

Where did AAA's growth motivation come from during the economic recession, when businesses in general and An Phat Bioplastics in particular faced many challenges?

We have put forth an orientation to expand production. Currently, the projects that An Phat Bioplastics has invested in for the past five years are all running at full capacity. Therefore, we plan to expand the production of packaging, interior plastic, and engineering plastic, prioritizing environmentally friendly products using high technology.

Our goal is to open at least one new factory each year with a contribution of at least 15% to our current revenue, aiming to double the current production scale by 2030. That will be AAA's growth driver in the next period.

What plans does An Phat Bioplastics have in the medium and long term to affirm its position in the Vietnamese market and then expand its market share of green products around the world?

In addition to continuing to expand capacity and markets related to biodegradable products, we are aiming to research and develop other products such as recycled, paper packaging, and new environmentally friendly products. We are determined to promote communication and marketing activities for our green products in domestic and international markets to affirm our leading position and expand our customer base.

Besides packaging and green products, AAA also has a strategic business segment: industrial real estate. What plans do you have to improve that area in the near future?

Industrial real estate is a field with good profit margins. However, finding a potential project takes a lot of time. We are focusing on expanding local Industrial parks with favorable locations to attract customers. At the same time, we are also researching the model of building factories for rent amid increasing demand.

You resigned from the board of directors of An Phat Holdings (HoSE: APH) to focus more on your management work at AAA. Can you share more about this decision?

Currently, in addition to holding the position of AAA chairman, I am also assigned to develop new products for the entire group, especially environmentally friendly products. I am also in charge of training and supporting the export sales team to understand new products and encourage customers to use green products.

Therefore, to focus on research and other key tasks, I resigned from the group's board of directors. I still hold the position of APH deputy general director and serve on the group's executive board.

On the stock market, AAA closed the Tuesday session at VND10,650 ($0.42) per share.