Mr. Pham Do Huy Cuong, CEO of An Phat Holdings, expressed his satisfaction with the results the Group has achieved in the past year. He also expects that, entering 2024, An Phat Holdings will continue to promote its production strengths, making the Group stronger on the path of sustainable development.
Sir, according to the Group’s financial report, in 2022, revenue was higher in the commercial sector than in the manufacturing sector. However, in 2023, production revenue grew faster than commercial revenue. What led to this change?
In recent years, not only at An Phat Holdings, production in general has been affected by the Covid-19 pandemic, inflation, geopolitical conflicts, rising prices of input materials… causing production revenue to inevitably decline.
It is true that in 2022 our commercial revenue was higher than the manufacturing segment. However, in essence, An Phat Holdings is still a manufacturing group. We are by nature a manufacturer, so only sustainable production can help us achieve sustainable development. We have 15 factories in provinces and cities in the country, so we quickly returned to our core to focus on developing this segment. Therefore, there has been an improvement in the financial numbers in 2023 of An Phat Holdings. This makes us very satisfied and we will continue to further promote our production strengths in the coming years. An Phat Holdings will always pursue its goal of becoming the leading high-tech and environmentally friendly plastic manufacturing group in Southeast Asia.
Please tell us what production projects An Phat Holdings has for 2024?
In 2024, An Phat Holdings will increase and expand production in all core production areas, from packaging, engineering plastics to furniture plastics, and completely biodegradable products… The expansion is based on the projects that we invested in during the initial period of establishing the Group from 2017-2018 and are now running at maximum capacity, while demand continues to grow, so we decided to continue expanding the capacity of these products.
Can you elaborate more on the production plans for these segments?
Currently, businesses are diversifying out of China into Vietnam, especially electronic businesses and supporting businesses, and An Phat Holdings will seize this opportunity to develop. We will expand production to meet the demand, strengthen competitive advantage, reduce sales costs and optimize profits. Last year, the Group restructured its business to prepare for a new production phase.
For technical plastics, An Phat Holdings produces precise and large molds for cars. In the coming time, our Group will open a painting service segment to help increase product value and competitive advantage. We will also continue to strongly restructure the technical plastic system along with investing in new modern machinery to improve labor productivity, reduce production costs, thereby expanding our customer base. The Group has a lot of experience in producing technical plastics, car and motorbike parts with guaranteed quality, which is highly appreciated by customers.
As for interior plastics, our flooring segment is also exporting very well – 90% of output is exported to the U.S. market and is expanding to Canada and North America. Therefore, we continue to boost production capacity to meet export demand. In addition, we have not exported household plastic products before. But now a partner, a large supermarket chain in Canada, has placed an order. This will be a new bright spot for the Group’s production next year when it produces more of this item.
Will focusing on production growth slow down other commercial spheres of An Phat Holdings?
We will continue to maintain the quality of commerce and services. This is still an area that greatly supports production activities. At An Phat Holdings, the fields and member companies always accompany and support each other to create and develop together. On the other hand, the Group is expanding its operations in the international market, especially the U.S. market. Our member companies here will also deploy new activities to support production and sales next year. Therefore, focusing on developing and improving the quality of commercial and service sectors also helps expand customers and distribute our manufactured products.
Besides the manufacturing sector, does An Phat Holdings target any other major business areas?
Besides the manufacturing segment, An Phat Holdings is also aiming to expand its land fund for industrial estate. After implementing the An Phat 1 Project with an area of 180 hectares in Nam Sach District, Hai Duong Province, we have built an elite team in the real estate field, as well as accumulated a surplus amount of land to move towards implementing larger projects. The industrial park field is a business area with good cash flow, while also creating a reserve land fund for the expansion of production and business activities of the manufacturing segment itself. Therefore, we are also very interested in developing this business segment. However, we only aim to allocate 20% of capital and assets to this field and will focus on selecting good projects, focusing on developing each project, not speculating and accumulating land waiting for price appreciation.
Can you share the expectations of An Phat Holdings in 2024?
Entering 2024, we expect to accelerate new projects and new products with an image and spirit of An Phat Holdings full of youth, health, daring to face challenges for sustainable development, bringing great values to the community and society and enhancing the position of Vietnamese businesses globally.
I hope that one day soon, An Phat Holdings will plant the flag of a Vietnamese enterprise on the map of the world plastic industry.
Sincerely thank you!
