On 5/9/2018, An Phat Holdings signed a business cooperation agreement. Recently, the Ministry of the Environment and nine other related ministries in Korea have submitted to the government a 10-year plan to flexibly handle the procedure of waste recycle to reduce the amount of waste that is difficult to recycle throughout the entire production as well as consuming process, and to encourage the use of environmentally-friendly products.
Specifically, the plan includes a complete ban on the use of disposable plastic cups and plastic tubes in coffee shops and public places by 2027 and the shift to environmentally friendly products. South Korea is expected to reduce waste by 20% and increase its actual recycling rate from 70% to 82% by 2027. Thus, in the context of the South Korean government’s drastic action on the environment, An Phat expects South Korea to be a bright spot for consumption growth in Asia in the coming years, becoming one of the main growth drivers of the global bioplastics industry in 2018-2022. With the signed business cooperation agreement, Korean investors, typically the strategic shareholders of An Phat Holdings Joint Stock Co – Value System Management Company, not only proved their role financial support for An Phat Holdings, but also a business partner to open new business investment opportunities. Value System is the link between An Phat and its partners in Korea as well as a financial supporter for this business cooperation project. Thus, taking the advantages of the market, business network and financial potential of Korean investors, An Phat Holdings will surely have easier steps to develop business in this market and to expand the investment opportunities in the international market.
Value system is a fund management company with 9 years of investment experience to Korean market. Led by the top financial experts of Wallstreet and Seoul, the company has developed an online asset management system based on artificial intelligence technology with the launch of Aibo Robo Advisor. The company was rated first rank in investment consulting in the past three years by KG Zeroin. In early February, Value System has poured 353 billion dong (US $ 15.6 million) into An Phat Holdings Joint Stock Co- this is the first investment of Value System in the international market, creating confidence for the home invest Korea in potential investment opportunities in Vietnam market.
An Phat Holdings is a pioneer in the plastic industry in Vietnam with the leading plastic thin-film packaging industry scale in Southeast Asia. With a target of $ 1 billion in 2025, An Phat will develop and stabilize its input materials, which are derivatives of petrochemicals including plastic resin and plastic additives, to the output thin film packaging and packaging products, primary products, high-tech plastic injection molding resins, and safe household plastic products with superior quality. By extending the production and business chain, An Phat expects to increase the value of the plastic industry, support the development of the plastic industry in Vietnam and improve the competitiveness of Vietnamese manufacturers in the international market.
Strengthening trade relation between Vietnam and Korea 2018 marks the 25th anniversary of Korea-Vietnam investment relations with historic strides as South Korea becomes the first country to invest in Vietnam in 128 countries and territories. According to statistics, the total progress to the end of December 2017 of the Korean investors into Vietnam is 6,532 projects with the registered capital of 57.65 billion USD. The investment capital of Korean enterprises into Vietnam in 2017 reached more than 8 billion USD, accounting for about 25% of the total foreign investment capital of Korea. In terms of trade relations, the two-way trade turnover reached 60 billion USD in 2017, which is 38% higher than the figure of 2016, making Korea the third largest trade partner of Vietnam. By the same token, Vietnam becoming the fourth largest trade partner of Korean in the world market.
Also in April, the Ministry of Finance together with the leaders of the finance and securities sector of Vietnam hosted a conference to promote investment in Vietnam in Seoul, Korea with the participation of over 400 investors from investing funds, banks and large insurance corporations of Korea. The Korean investor community expressed special interest in seeking investment opportunities in Vietnam, contributing to the realization of the two Governments’ common goal of increasing the Vietnam-Korea trade turnover to 100 billion USD by 2020.
The investment project in Korea with strategic partner of An Phat Holdings is a clear evidence of progress in bilateral relations between the two countries, opening two-way cooperation opportunities when both sides exploit potential markets in Vietnam and Korea.