In 2020, the COVID-19 is not only a global pandemic and public health crisis, but it also severely affected the global economy, causing many businesses to suffer, even falling into a spiral of bankruptcy.
While many countries are struggling with the devastating consequences of Covid-19, Vietnam has become a bright spot in the world despite the lowest GDP growth in 2020 in a decade.
On the eve of the new year, Vietnambiz reporter had an interview with Mr. Pham Do Huy Cuong, Standing Deputy General Director and CFO of An Phat Holdings (Ticker symbol: APH) who shares about business plan after a turbulent year COVID-19.
Mr. Pham Do Huy Cuong was quoted as saying: “In 2020, not only our company but all businesses have never before faced unimaginable challenges.”
With the core business of packaging production, An Phat Holdings still maintains growth. However, the epidemic still affected other businesses of the company. Due to the production delay of carmaker and motorcycle manufacturer, the plastic components and spare part for automobiles and motorcycles of Hanoi Plastics was affected. Therefore, APH’s business result has also been impacted.
Besides, Mr. Cuong added that because the epidemic made it difficult for foreign customers to have actual survey of Vietnamese market. Hence, the progress of exploiting An Phat Complex Industrial Park was slower than originally expected.
Regarding business results in 2020, Mr. Cuong shared that An Phat Holdings’ after-tax profit was estimated at VND 320 billion, fulfilling about 50% of the annual profit plan.
Talking about the prospects of the packaging industry in 2021, Mr. Cuong said that the traditional packaging industry is expected to maintain 4 – 5% growth, but the environmentally friendly packaging segment will grow faster, expected about 15 – 20% per year.
In addition, from 2021, the industrial packaging segment will begin to contribute about 10% of the production to the group’s packaging segment.
Regarding the industrial real estate sector, Mr. Cuong said that 2021 will be a booming year for this sector as Vietnam is taking full advantage and opportunities of the shift in production of global supply chain, free trade agreements. It is expected that the remaining revenue from land transfer of the Complex Industrial Park estimated about VND 500 billion will be recorded in the first half of 2021.
Regarding the PBAT manufacturing plant project, the design consultancy contract is rushing to complete, which is expected to be signed in early 2021 to be able to start the project as of September 2021. The project is expected to be completed in 2023 for APH to be in the world map of compostable materials.
Sharing the development strategy for 2021, Mr. Cuong said that the priority areas of the Group would still be green products, engineering plastics and industrial real estate.
He added, at present, the group has completed the profit plan for An Phat Bioplastics JSC (Ticker: AAA) of VND 550 billion for 2021.
Regarding the production expansion plan, the group leaders said that by 2021, the capacity for the packaging segment will continue to increase to 120,000 tons per year, including thin monolayer film and industrial packaging.
At the same time, An Phat Holdings will also continue to invest in infrastructure for Quoc Tuan – An Binh Industrial Park phase 1 with an area of 180 hectares, and it is expected that the industrial park will be officially exploited in the first half of 2021.
(Read more details at: https://vietnambiz.vn/hai-nua-sang-toi-cho-don-doanh-nghiep-nam-2021-20201228112639886.htm)
