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An Phat’s achievements one year after investing nearly VND800 billion in abandoned IP
Thursday,  Jun 27, 2019,08:51 (GMT+7)

An Phat’s achievements one year after investing nearly VND800 billion in abandoned IP

Last year, An Phat Group spent nearly VND800 billion acquiring Taiwan’s Viet Hoa-Kenmark Industrial Park, which had been abandoned for nearly 10 years. It is more surprising that An Phat announced to develop a completely new industrial property project inside the park. The decision raised doubts for investors as An Phat had no experience in developing industrial property projects at the time, while Viet Hoa-Kenmark Industrial Park needs complete and extensive restoration to develop.

However, only one year later, An Phat has turned Viet Hoa-Kenmark, which is now known as An Phat Complex (APC), from an abandoned industrial park into a prime one. Pham Van Tuan, General Director of An Phat Complex, talks about APC’s achievements over last year and plans in the coming periods.

Mr. Pham Van Tuan - General Director of An Phat Complex

Can you talk more about An Phat’s quick acquisition of Viet Hoa-Kenmark Industrial Park?

Pham Van Tuan: It was quite quick that we bought Viet Hoa-Kenmark. After receiving the offer, we rapidly established a working team responsible for analyzing potential and risks of the project. To be honest, the project was potential but also posed numerous risks as it had been abandoned for a long time. Some people even compared it as a blood clot in Hai Duong Province. However, we saw it potential and thought that we could have solutions to these problems, so we decided to acquire it.

Why do you say that Viet Hoa-Kenmark is a potential project while it attracted no other investors at the time?

- Whenever deciding to get involved in any project, we will carefully consider three factors: the attraction, possible profits of the projects, and the market’s demands. Viet Hoa-Kenmark met these three requirements. At the time, no banks agreed to pour capital in the project, which made it unattractive. An Phat could not borrow bank loans to invest in the project, so we mobilized capital from other resources.

Another reason is that An Phat, with nearly 20 years of experience in production, was confident to restructure the current facilities from previous owner. Some other industrial park developers would find it hard to optimize the existing factories.

After being acquired by An Phat, Viet Hoa-Kenmark was renamed as APC and has developed dramatically. Can you clarify the process?

- The project was officially handed over to An Phat in July last year. At the time, the project’s workload was huge as the industrial park had only some machines which were covered with a thick layer of dust. In addition, electricity and water supplies were cut and weeds grew throughout the industrial park.

Legal procedures as well as marketing and sale plans also put pressure on us. However, An Phat, with strong determination, has worked at more than 150% of our capacity and I am proud to be a member of it.

We could see changes of APC day by day while you must spend a week with other normal projects. We were determined to develop APC into a technological complex in Hai Duong Province, which would not only gather An Phat’s production facilities but also be a destination for domestic and foreign investors.

What would make APC an attractive destination for investors?

- Many people, including shareholders of An Phat, were concerned about the future of APC as the company had yet to develop any industrial property project at the time. Such a completely fresh firm in the sector as An Phat has conducted the project in an absolutely new way.

We did not aim to sell land lots in the industrial park, but focused on developing supporting services. Investors in APC will be offered solutions on finance, human resources, supporting industries, administrative procedures, business registration, customs procedures and logistics services. Therefore, investors can feel secure about their operations in the complex. As for services that An Phat could not provide by ourselves, we will work with the competent agencies in Hai Duong Province or seek partners to serve customers.

Up to 60% of APC has been occupied in nearly a year, which is impressive in comparison with other industrial parks. How many customers does An Phat have in the complex?

- One of our customers, Leo Paper Group, is a leading paper producer from Hong Kong. The group leased a 50,000-square-meter factory in APC and continued leasing another one which is 30,000 square meters wide in the middle of this month.

Getting new customers is obviously a success but retaining those you have already had is a greater success.
Another customer from Hong Kong also leased a 11,000-square-meter factory in APC. An Phat is also in negotiations with a customer from Taiwan, which wants to lease 10 blocks in the complex.

The occupancy rate in the complex is now 55%-60% and is expected to reach 75%-80% later this year.
APC contributed an estimated VND180 billion in An Phat Bioplastics JSC, a subsidiary of An Phat Group.

How will APC develop in the next two years?

- APC’s infrastructure is as developed as that in other modern industrial parks. We have built a four-hectare factory and will develop four other factories. We will develop APC into a hi-tech complex. Given the influx of foreign investment into the country as a result of the Sino-U.S. trade war, APC, which is located near the intersection of four localities---Hanoi, Hai Duong, Haiphong and Quang Ninh---will continue developing significantly in the future.

After leasing all factories in the industrial park, we will focus on providing power and water, materials, and waste treatment, catering and supporting industries services for those in need in the park.

Will An Phat develop another industrial park adjacent to APC?

- It can be affirmed that everything is matched with our purpose. Therefore, the expansion of our activities in industrial real estate is indispensable. An Phat has plans to execute the Quoc Tuan An Binh industrial park project in Nam Sach District of Hai Duong Province. The industrial park will be located near An Phat Bioplastics JSC.

In the first phase, planned to be executed in 2020, the company will develop the project on 180 hectares of land, focusing on selling land lots.

Reach more:

Toyota Vietnam, An Phat Holdings team up to increase localization rate

Local plastics producer An Phat aims to speed up investment in U.S.

Local plastic producer to set up shop in United States

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