CHIẾN lược mở RỘNG KINH DOANH QUỐC tế của CÔNG TY cổ PHẦN NHỰA và môi TRƯỜNG XANH ANPHÁTe

CHIẾN LƯỢC MỞ RỘNG KINH DOANH QUỐC TẾ CỦA CÔNG TY CỔ
PHẦN NHỰA VÀ MÔI TRƯỜNG XANH ANPHÁT
STRATEGIC EXPANSION OF INTERNATIONAL BUSINESS
CORPORATION PLASTIC AND GREEN ENVIRONMENT ANPHAT

CONTENT

I. CORPORATE INFORMATION

1. Brief Introduction
Company Name: JSC Plastic and Green
Environment Development
English Name: AN PHAT PLASTIC AND
GREEN ENVIRONMENT JOIN STOCK
COMPANY
Abbreviation: An Phat., JSC
Address: Lot CN12 CN11 +, An Dong Industrial Park, Nam Sach district, Hai
Duong province.
- Phone Number: 0320.3755988

Fax: 0320.3755113

Pursuant to the certificate of business registration number 0800373586 by
Department of Planning and Investment Hai Duong Province, first registered on
09/3/2007 and 21/5/2010 changing times 14 days, the business line the company
include:
+ Purchase of machinery, equipment, supplies and materials for plastic products,
packaging of all kinds;
+ Production of plastic (PP, PE);
+ Print and advertising services on the packaging;
+ Construction of civil works; Installation of equipment for the construction work;

The real estate business;
+ Purchase of machinery equipment and spare parts; Technology Transfer;

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+ Sales agents, consignment goods, commercial brokerage, fiduciary sale of goods;
Transportation of goods and passengers by automobile and ancillary activities for
transportation;
+ Waste collection and handling of waste disposal, recycling waste; Remediation
activities and other waste management;
+ Manufacture of machinery and equipment for the plastics industry.

2. Several key information about the
company
The company has three factories:
Plant No. 1
Built on an area of 14,000 m2 in Nam Sach
Industrial Zone - Hai Duong - Hai Duong
Province, the plant's No.1 Plastics Corporation
and Green Environment Development activities
mainly in the field of plastic recycling , manufacturing food packaging bags, garbage
bags,

plastic

films

used

exclusively

in

agricultural and manufacturing recycled resin
HDPE, LDPE colorful ...

Plant No. 2
Construction was started in 5/2007 in An
Dong Industrial Complex in an area of
40.000m2, factory number 2 has a design
capacity of 700 tonnes / month, create stable jobs
for about 500 local labor. The factory is equipped with advanced production lines,
modern imported from Taiwan, Korea, Japan, Singapore and China.
The factory put into operation 2 marks a new development in the field of
production of An Phat Plastic recycling plastics in particular and Vietnam in general.
Along with the introduction of the production line into operation, the company also coproduced the series for new products to meet the needs of the market, with particular
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emphasis in manufacturing product line "self-Plastic packaging destruction "- a
product line promises to bring great success on the market of Vietnam and the world."

Plant No. 3
Built in the third quarter of 2008 and
completed in 9/2009, the building is
located in the strategic scale development
and diversification of the Company's
products. With a design capacity of 700
tonnes / month, focusing Factory released

3 categories roll bag, zipper bag high
level, serving food, or medical electronics
at two main markets are Europe and
America. At the same time, also here, An
Phat has

been

conducting research,

produce biodegradable plastic bags - a
product environmentally friendly.
With advanced production lines of
many modern machines imported from Taiwan and Japan, pledged to plant 3 satisfied
customers from all over the world, including customers from the market difficult cases
such as Germany, Italy, or Spain ...

3. Organizational structure, the management of the Company
MEETING OF
SHAREHOLDERS

BOARD

BOARD OF
SUPERVISORS

CHAIRMAN OF
THE BOARD
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THE
PROJECT

SECRETARIAT

INTERNAL
CONTROL BOARD
DIRECTORS

GENERAL
DEPARTMENT

DEPUTY
DIRECTOR
PRODUCTION

DEPUTY
DIRECTOR OF
FINANCE
ACCOUNTING
OFFICE
ROOM IT

ENGINEERING
DEPARTMENT

FACTORY
NUMBER 1

FACTORY
NUMBER 2

FACTORY
NUMBER 3

SCIENCE
BOARD
PRODUCTION

PREVENTION
AND
PROTECTION

ORGANIZING
DRIVE

SALES
OFFICE

KCS
ROOM

CUSTOMS
OFFICE
DEPARTMENT

Relationship control
Coordinate relationships
Dependent relationship (Source: Corporation Plastic and Green

Environment Development)
4. The financial situation and business results

a) Financial situation:
The unit of: million VND

Target
Total value of assets

Year 2012

Year 2013

866.092

1.102.862

1.046.688

Net sales

48.791

Profit from operations

2.529

Other profit
Profit before tax

51.319

Profit after tax

43.575

% Increase or
decrease
27.34%

1.166.3
34
53.36
8
2.12
2
55.49
0
43.81
0

11.43%
9.38%
-16.09%
8.13%
0.54%

b) Structure of company assets over 3 years as follows:
Target

Year 2011

Year 2012

Year 2013

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Value
(Millions)

Current assets

Share
(%)

Value
(Millions)

Share
(%)

Value
(Millions)

Share
(%)

293.530

37,71

432.666

49,96

489.310

44,37%

Long-term assets

484.820

62,29

433.425

50,04

613.552

55,63%

Total

778.350

10

0

866.092

100

1.102.862

100%

c) Results of operations 2013
Serial
1
2

Plan year
2013

Target

Implementation
year 2013

Percentage
(%)

1.100.000.000.000 1.167.323.929.038 106,12

Revenue (VND)
Profit before tax (VND)

55.000.000.000

55.490.300.897

100,89

(Source: Financial statements Parent company AAA)

5. Affirming Mission and Vision
With foresight and desire to be the responsibility of businesses to the community
and society, adhere to strict rules to ensure harmony between economic growth with
environmental protection, leadership Corporation Plastic and green Environment
Development has rapidly built a business in the right direction.

The plastics industry in the future still plays an important role in Vietnam's
economy. As one of the few businesses have the technology to recycle plastic
production first in Vietnam Plastics Corporation and Green Environment Development
has established a solid foundation as a prerequisite for the development plastic film
recycling business in Vietnam exporters and thin film packaging largest North.

In the area of trade , the Company oriented investment made will strengthen the
capacity of plastic recycling plant , ensure products are not only recycled plastic resins
meet demand production inputs including packaging film , but also sell to other

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businesses from Vietnam. In addition, the Company will enhance applied research
activities ( R & D ) to export plastic recycling lines overseas and domestic markets . In

terms of raw materials for the plastic industry depends heavily on imported raw
materials from abroad as at present , the growth potential of the company is very
good . In terms of long -term , Vietnam joined the WTO , the advantages will gradually
take the competition when firms invested abroad and freely penetrate more deeply into
the Vietnam market , but with benefits so go ahead and create a market basis , the
strong growth potential of the company is very solid .
Thus, the development prospects of the company is relatively positive, consistent
with the development of economy, the policies of the Government.
6. Products expected to hit the market overseas Phat
Is the bag for the Japanese market:

Plastic cover crops serve for Agriculture

Products bag in many colors

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Grain Products Calbest

II.

Products raccuon bag

THE STRENGTHS AND WEAKNESSES OF BUSINESS PRACTICES IN
VIETNAM

Strengths

Weakness

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• Vietnam is a member of the international

• Vietnam is a developing country at

trade organization WTO since 2007 and the

a low level, nearly 80% of the

association APTA, APEC ... have experience

population

(both successes and failures) in international

agriculture, industry, the impact of

business relations.
• Vietnam has many businesses investing

the subsidy period, monopoly still

still

depend

on

abroad (more than 720 projects of Vietnam

exists in some areas.
• Activity direct investment abroad is

enterprises to invest 55 countries and

limited, the implementation of the

territories) and ranks 12th top 25 countries

management

with high FDI in 2012 (Bloomberg business

investment abroad are not fully

Week) is a country in which the foreign

aware, there are concerns that

business attention and effective investment in

foreign capital flow stress with the

Vietnam.
• Vietnam is dating political stability and

domestic foreign exchange market,

security in the region and around the world.

investment abroad, post audits,

The system of legal documents on licensing

monitoring and management of the

foreign

project after licensing, no specific

provisions

investment
law

and

investment

direct

no development strategy of direct

targets for each plan year, each

government

regulation of foreign investment. procedures

sector investment.
• Policies are not clear, no incentives

for investment abroad as prescribed and be

for investment abroad accordingly,

guided by the Department of foreign

taxes

Investment - the investment plan has been

withholding tax from overseas to

adjusted and applied to 07/2007.
• Ninth Party Congress is in April 2001, the

Vietnam not convince investors .
• Lack of state budget funds for

Party and the government of Vietnam has

promotion of foreign investment,

officially

there is no specialized agency for

78/ND-CP

confirmed

"encourage

and

individuals

Vietnam

decree

the

dated

09/08/2006

of

(the

of

of

their

assist

intention

businesses
Vietnam

to
and

are

too

investment

high,

promotion,

including

such

as

foreign

Japan and South Korea are the two

investment, state have a role to create a legal

countries with investments abroad

framework to encourage my head overseas to

strong

promote the comparative advantages of the

organizations

growth,

there

are

dedicated

to

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country. In recent years a wave of foreign

promoting

investment

strong

professionals gather information,

growth. As of May 9/2012 Vietnam has more

policies, investment opportunities

than 720 projects of Vietnam enterprises to

overseas.
• The agency counselors Vietnam

enterprises

Vietnam's

invest 55 countries and territories.
• The authorities have proposed a number of

foreign

investment

representative of overseas activities

measures to promote direct investment

in the field of investment promotion

abroad in particular:
- First, as direct investment abroad is

is not interested ineffective, not in

-

-

part of Vietnam's economy
Monday: direct investment abroad are

the number of projects, do not fully
understand

the

difficulties

and

treated equally as other economic

advantages of the investment.
• The active management of direct

sectors.
Thirdly, each investor is considered an

investment abroad also interfere

ambassador for economic activities of
Vietnam in foreign countries.
• Vietnam has a long-standing culture with a

rich history and built to protect the country and people of Vietnam friendly and open
hospitality - the cultural norms and the State
Party has been a primary concern . in
education, the government has also high on
foreign language training and high technology
for the younger generation to Vietnam are
willing to integrate into the international
economy.

with the administrative procedures,
the

sample

documents

related

improvements still have not planted
the cross, corruption is still quite
popular. According to international
organizations,

Vietnam

ranks

123/176 countries on transparency
in economic activity.
• Understanding and thinking about
international business is limited,
training schools and universities are
weak. Currently, Vietnam ranks
95/186 countries on education and

• Vietnam has continued to identify and exploit
advantage,

training
• Infrastructure is not yet meet the

comparative advantages, natural advantages a

needs of economic development,

proper way. help for businesses and foreign

labor efficiency is not high, the

investment research (such as rice, caffe ...)
• Vietnam has adjusted international trade

efficiency of the market is still very

and

build

the

absolute

poor. Innovation has not improved,
Vietnam ranks 75/186 countries by
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policy commitments of the international

the World Economic Forum on the

trade organization (WTO) as: tax the export,

evaluation factors for the global

import
• Foreign exchange reserves of Vietnam now

competition.
• The organizational structure of

has over $ 32 billion.
•

In

terms

of

systems

international

as

well

as

business

cooperation

management state agencies still

Vietnam's WTO membership - twice as

exist in relation to the house,

president of the UN Security Council, a

making immediate economic style,

member of ASEAN ... Vietnam has actively

not to create confidence among

collaborated with the countries in the world for

investors.

the contribution common objective to protect
world peace. through international co-operation
and education, culture, environment, anticorruption, fight against crime, international
cooperation

and

other

...

These are grounds to believe that Vietnam
wants to be friends with all countries in the
world. Equality, cooperation and development.

III.

BUT CHALLENGES OF INTERNATIONAL BUSINESS ENVIRONMENT IN
VIETNAM NO

International markets are influenced by many different factors, often diverse

and abundant than the domestic market. These factors may bring macro and micro
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case is shown clearly done in some cases a very hidden, elusive for foreign
businessmen. Specific challenges as follows:
Firstly; Meeting the international trade system; The foreign business is always
faced with various trade restrictions such as tariffs, quotas, exchange controls and a
variety of non-tariff barriers such as import licenses, the management of regulate
shaped like discrimination to foreign bidders, the product standards discriminatory
treatment of foreign investors. On the other hand there are efforts to encourage free
trade between countries or at least between a number of different countries. General
Agreement on Tariffs and Trade has an important driving force to go to the
clearance level agreements tariff and non-tariff barriers around the world.
Monday; challenge the economies of countries to invest; When considering the
foreign market, the business must study the economies of countries such as
structured investment industry; income distribution.
Tuesday; challenging political environment law; For the business environment
in the country, investors can understand about political institutions and the political
stability, however, the business environment many potential risks when possible
states of a conflict. Therefore, investors should pay attention to these factors:
attitude towards foreign traders, political stability, currency regulation, the validity
of the government apparatus.
Finally the challenge comes from cultural differences, to compete in the global
environment, enterprises must have above all the unique culture but also common
features in common with other countries, the enterprise must also create the
products consistent with its cultural invested.

IV.

CHANGES ON THE ETHICS OF BUSINESS INTEGRATION

Awakening business ethics in the market mechanism is a very difficult problem.
By not rare cases, the manufacturers business also faced with a paradox: do
carelessly, do lie often said, as "neat", not true profit. Therefore, when entering the
structure of global business ethics we need to change the following issues:
- Transparency in business;
- Integrity in business;

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- View ethics and social responsibility is an essential part of business strategy,
businesses will also feel more voluntary and proactive in the
implementation. As such, these issues are no longer a burden or a mandatory
thing which is the source and basis of success.
According to the rankings of Transparency International, in 2013:
Vietnam ranks 116 on 177 in the rankings, is 31 out of 100 points and on the
organization's website.

V.

OPPORTUNITIES AND CHALLENGES TO OVERCOME THE MARKET

EXPANSION OF AN OFFSHORE DEVELOPMENT

From the analysis of the strengths and weaknesses of the AnPhat Company, SWOT
model applied to position integrated assessment of AnPhat Company. On that basis,
forming strategies to exploit the strengths, maximize opportunities, weaknesses and
limitations dodge challenges.

WO Strategies

SO Strategy
Use strengths to take
advantage of
opportunities

Opportunities

Take advantage of
external
opportunities to
overcome

The plastic industry is encouraged by the
weaknesses.
State sector development
Strategy
4:
Demand for plastic packaging products is
Development
increasing both in the domestic market
Strategy in brand
and exports
development
Petrochemical Industry of Vietnam began
developing should be able to have the
Strength
input of raw materials from the local Weakness

Machinery systems modern market.
Processed products should not
technology, producing products with
identifiable brand
high difficulty
Higher debt ratio
Reputable products and have been
Production orders should be proactive
confirmed in the market place
sometimes not issue preventive
especially in foreign markets
materials.
Reasonable product price and can be
reduced by partial autonomy inputs

Strategy 1: Strategy
product
differentiation
Strategy 2: Strategy
leading to cost.

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Challenges (Threats)
ST Strategy
Use strengths to
dodge challenge
Strategy 3: Strategy
for mining customer

focused strategy

The cheap products of China.
Prices change according to the raw
material prices
Taxation of environmental protection
began to apply in Vietnam since
1/1/2012

WT Strategies
Overcome
weaknesses, reduce
external threats.

In the coming year, determine that the product is biodegradable countries around
the world, especially in major markets such as Japan, EU ... popular, the company will
focus on developing this item. In the long term, bags biodegradable products will be
the main product of the company.
In addition, the Company's Board of Directors also constantly investing to improve
machinery and equipment in order to improve labor productivity. The technical staff of
the Company are sent improve skills training.
The company is planning to apply for additional 10ha of land next to the company's
headquarters in Hai Duong present to investors expand or build more plants in the next
year.
The plant's No. 3 company not currently running at full capacity. The company will
invest around 30 billion worth of machinery and equipment to further increase plant
capacity 3 to 100%, yielding 2,000 tonnes / month.
With the policy to further improve the level of technology and product groups, the
company has expanded the scale of investment and operating power plants recycled
plastic, and more development of plastic packaging items arbitrarily canceled, meet the

standards of EU environmental protection, organized in collaboration with the EPI
Canada set up a production line packaging standards for environmental protection.
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With the optimistic outlook of the industry, backed by the government and the
intrinsic capacity of the Company, the plastic manufacturing sector less common
dangers threatening potential.

1. Differentiation strategy products
So An Phat produced to order and nature of the processing is done mainly to
differentiate the product will be different from the production of common consumer
goods.
Differentiation strategy An Phat products that perform primarily related to meet all
customer requirements including:

- Orders require high technical elements, high quality.
- Orders require a large volume of products in short time
It is this difference between creating An Phat with other manufacturers in Vietnam.
This is an advantage of Phat. With the system current machinery, the manufacturer can
not meet the high volume of orders that in a short time. Meanwhile, Phat can meet and
that is why every successive orders to An Phat and revenue is growing over the years.
An Phat main market is still exported to EU, Japan.
The solution strategy:
To achieve differentiation strategy with products like the content, the company
needs to implement solutions. The solution includes:

 Solution of machinery and technology
Continue to promote the creative skills of the technical staff of the company based
on the existing machinery to produce products with high technical requirements

Investment in new machinery and equipment to produce advanced products with
high difficulty level as the folded bag.

 Solution and financial investment
 Marketing Solutions
Actively participate in the fair industry at home and abroad plastic and promotion
of innovative technologies that are going to be AnPhat, full introduction of AnPhat
capacity to the customers can see real quality of capability and thus AnPhat order.

 HR Solution
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Promote training for officers and staff to be able to absorb new technologies

2. Leading strategy costs
By analyzing the internal factors of the company in Chapter II, we find that, in
order to implement strategies leading to cost the Phat focus on the following content:

- Maximize the capacity of the existing machinery and equipment for new
investment.

- Gradually reduce interest expense by source access to concessional export
credit at low interest rates or issuing shares to increase charter capital

- Gradually replace the imported raw materials in the production of raw
materials for domestic petrochemical plants go into production.

- Continuously improve the skills of workers to meet the requirements of the
high-tech equipment which reduces the cost of a defective, damaged goods.

The solution strategy:
To implement the strategy leading to the cost of such content on, the company
needs to implement solutions. The solution includes:

 Solution of machinery and technology
 Financial Solutions
 Marketing Solutions
 HR Solution
 Solution for production and operation
2 The implementation of the above strategies will help to get AnPhat firmer
foothold in the domestic market as well as export markets . In the domestic market , by
implementing strategies leading to cost AnPhat will be able to produce products at low
prices with relatively good quality and thus increasing the ability to compete with
other domestic manufacturers . And in the difficult export markets such as the EU and
Japan , the implementation of the two strategies on the one hand increases the
likelihood of AnPhat response to orders require high technical quality , large volume
and in the short term and the other manufacturers in Vietnam can not meet , on the
other hand AnPhat can be increased through price competitiveness of their products

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and thus may be advantages to with producers from countries such as Indonesia ,
Pakistan.

VI.

CONCLUSION

Along with the traditional markets in the country, the expansion of investment

international markets is a necessary step for An Phat now at this stage.
According to estimates based on the strength of AnPhat, strengths, weaknesses,
opportunities and challenges presented above, I see the deployment of overseas
investment is entirely feasible.
To expand, penetration, growth and sustainable development in the market and
potential challenges in international markets requires the efforts of business
management, with strategic vision, long-term, always innovating.
To implement this goal in detail, the article needs to be expanded with each item
detail, thorough research of the market, and how specific actions based on the figures
reported in the amount of detail that this article can not adequately addressed.

REFERENCES:
 Documentation "International Business Management" - Dr. Larry Williams
 World Economic Forum : The Global Competitiveness Report 2012–2013
 /> anphatplastic Annual Report 2013
 /> www.vietnamplus.vn
 Corporate Governance Curriculum, Faculty of Business Administration, National

Economics University in Hanoi, 2005
 scientific research methodology, Jane Williams, Publisher Prentice Hall, 2004
 Competitive Strategy - Michael E.Porter, Publishing House of Science and

Engineering. Hanoi

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