Vietnam’s An Phat Holdings Group has begun construction of a US$120 million compostable resin plant, the first of its kind in Southeast Asia, in the northern part of the country.

An Phat Holdings, a private company headquartered in Hanoi, launched a ground-breaking ceremony for the plant at Nam Dinh Vu Industrial Park in Hai Phong City on Wednesday in the presence of National Assembly Chairman Vuong Dinh Hue and other officials.

The factory will be the first and largest polybutylene adipate terephthalate (PBAT) compostable resin factory in Southeast Asia, the group said on its website.

The plant, which is on the list of high-tech investment priority projects, will be built in just 24 months and feature an annual capacity of 30,000 metric tons.

Equipped with modern technology and machinery, the plant’s operating efficiency is highly optimized, with an average operating time of 8,400 hours, equivalent to 350 days a year.

Upon its launch, the factory will create jobs for about 200 skilled workers and its products will not only meet the group’s demand for materials but also serve exportation.

“An Phat Holdings will represent Vietnam on the global map of green materials and become a pioneer in implementing Vietnam’s commitment to achieve zero emissions by 2050," Pham Anh Duong, chairman of An Phat Holdings, said at the ceremony.

Duong emphasized that the plant will be the best and most reasonable solution to An Phat Holdings’ material sourcing needs as it will help the group find a sustainable raw material supply, reduce prices to get closer to consumers, and move toward to replacing traditional plastic products.

The prices of the green products used by the group will decrease by 20 to 30 percent when the factory comes into operation, the chairman said.

Through this project, An Phat Holdings will complete the green circular ecosystem, become the first Vietnamese enterprise to produce bio-degradable plastic materials/products, and officially become a participant in the world’s green material sphere, the group’s leader stated.

By producing 30,000 metric tons of PBAT a year, the factory will cut 33,000 metric tons of CO₂ per year, equivalent to the ability to absorb CO₂ of 165,000 hectares of forest, contributing to implementing Vietnam’s goal to reduce its net emissions to zero by 2050 as committed at the 2021 United Nations Climate Change Conference of the Parties (COP26), said Le Anh Quan, deputy chairman of Hai Phong.

“This project is in line with the goal of developing Hai Phong’s high-tech pillar in 2022,” Quan said, adding that local authorities will assist the investor in the project’s construction and development. 

Established in 2002, An Phat Holdings is one of the leading companies in advanced technology and environmental friendliness plastic production in Southeast Asia, the group said on its website. 

The firm has exported its products to the U.S., Europe, Japan, South Korea, Singapore, the United Arab Emirates, and the Philippines, among others, it added.

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