At the Forum on Trade and Industrial Cooperation with American partners 2020 taking place on the morning of September 25 in Hanoi, Mr. Pham Hoang Viet – Vice Chairman of An Phat Holdings shared the story behind their revenue with 80% comes from exports, of which the Americas are the key market.
The Forum on Trade and Industrial Cooperation with American partners 2020 is an event organized by the Ministry of Industry and Trade to provide updated information on changes in economic and trade policies of the Americas, analyzing the market situation and demand for Vietnam’s export industries in the current period, thereby identifying opportunities and solutions to promote exports and attract investment from the Americas, especially in the context of the Trade Agreements being put into effect.
The forum attracted more than 200 delegates from enterprises including the business associations in Viet Nam, agencies under central and local ministries, trade and investment promotion organizations, and members of mission, Vietnamese trade representatives in the Americas.
On behalf of American partners, there were representatives from the diplomatic missions of the Americas in Vietnam, the Ambassadors of Brazil, Chile, Colombia, Cuba, and Mexico … and representatives of many large American enterprises in Vietnam.
Sharing at the forum, the leader of the Multilateral Trade Policy Department (Ministry of Industry and Trade) said: “There is still a lot of opportunities for Vietnam to export to American markets, therefore, Vietnamese businesses need to change their minds as well as current business practices. They should not be satisfied with what they have but taking advantage of trade agreements such as EVFTA, CPTPP … to become “FTA expert”.
In recent years, America is continuously the continent with the highest growth in trade turnover among Vietnam’s partners. The value of two-way trade over the past 10 years has increased by 3.5 times, from 28 billion USD in 2011 to 96.8 billion USD in 2019. Despite the impact of Covid-19, in the eight months of 2020, two-way trade turnover between Vietnam and the Americas still reached 69.3 billion USD (increased 11.8%, of which, Vietnam’s exports increased by 15.9% compared to the same period in 2019).
As one of the special speakers of the event, Mr. Pham Hoang Viet – Vice Chairman of An Phat Holdings assessed the importance of foreign markets and shared his experiences of nearly 10 years exporting to America.
In the business ecosystem of 15 member companies, there are 6 export companies in the field of packaging and compostable product branded AnEco, AnBio; jumbo packaging; high-tech interior plastic products such as AnPro flooring; plastic materials and additives … In 2020, the enterprise is expected to reach an export value of 9,000 billion VND, accounting for nearly 80% of the total revenue of the Group.
According to Mr. Viet, in order to succeed in exporting to the American market, this company has had to make great efforts, especially focusing on international standards about products and factories.
“For each product, we need to meet the individual standards of product quality, safety for health and the environment,” he said. Specifically, in order to be welcomed by the US market, our AnEco and AnBio products must meet strict certificates such as: BPI Compostable (in terms of decomposition), Food Contact (safety certification in direct contact with food). Or for AnPro high-tech plastic flooring, we have to guarantee FloorScore certification (a product certification standard that ensures the lowest emissions and safety, consistent with indoor air quality)”.
In addition, some partners in the US also have their own requirements for factories, which are requirements for safety, factory hygiene, standards for the improvement of production processes… Hence, An Phat Holdings needs to demonstrate its ability to meet those standards. According to the unique requirements of partners in the US about factories, An Phat Holdings meets the following standards: ISO 9001 on quality management; ISO 14000 on environmental friendliness; ISO 22000 on ensuring food hygiene and safety … at factories. Mr. Viet also emphasized that besides the economic factor, the resources and enthusiasm that An Phat Holdings invests in acquiring a series of above certificates is the most important factor.
With the strategy of customer diversification, product diversification, and continuing to promote market research, An Phat Holdings aims to expand the market in North American states, bringing the number of customers from nearly 70 countries to 90 countries in 2021 and set the Americas as the primary market, bringing in the largest revenue compared to other markets.
