An Phat Holdings at forefront of using technology to make compostable products

An Phat Holdings was the first Vietnamese enterprise to produce 100 per cent compostable products

Many businesses are eager to catch up with the emerging green consumption trend. However, not every business has strong financial capabilities and technology to produce compostable products in line with the international standards.

Indeed, there are many businesses producing compostable plastic products in Vietnam and in the world. However, given the lack of proper technology, many of these products still release microplastics into the environment.

Clearly, it is not easy to make 100 per cent compostable products that meet several strict international standards such as ASTM D6400 (US), EN 13432 (EU), EL 724 (KOR), ISO 17088, TUV OK Compost INDUSTRIAL (evaluation criteria for the "industrial composting" label) as well as TUV OK Compost HOME (evaluation criteria for the "home composting" label).

Among the thousands of Vietnamese plastic producers, An Phat Holdings (APH) has become the first enterprise to successfully produce 100 per cent compostable products. APH has made its AnEco compostable product series from corn-starch-based PLA (polylactic acid) biological materials along with other compostable materials.

AnEco compostable products are safe and eco-friendly with outstanding advantages such as short decomposition time from six to 12 months, without releasing any microplastics. The products also meet some compostability standards such as the TUV OK Compost INDUSTRIAL and TUV OK Compost HOME.

It is quite costly to develop eco-friendly products, so last year APH invested in a firm in South Korea to reduce expenses. The South Korean firm is among the few enterprises in the world holding the copyright for compostable materials. APH has gained a competitive edge in producing compostable products.

At present, APH is planning to build a factory manufacturing compostable materials at Nam Dinh Vu Industrial Zone in Haiphong. The factory is designed with a capacity of over 20,000 tonnes per year. Slated to be completed by the end of 2021, the factory will help APH to reduce the production costs.

An Phat Holdings is ramping up the development of a new factory to reduce the expenses of compostable materials

The AnEco compostable product series, such as bags and gloves, are certified with the TUV OK Compost INDUSTRIAL and TUV OK Compost HOME standards. The product line has been awarded some other certificates such as BPI Compostable of the US, DIN Certo Compostable, and Biobased 50 – 85 per cent of Germany. Therefore, APH has holded a significant competitive edge in exporting its compostable products to several large foreign markets such as France, Romania, Italy, Australia, and the US.

APH has enormous potential and considerable opportunities in the packaging industry given that not many enterprises globally can manufacture these compostable products. According to the latest recent report, only four in the 10 leading companies can develop such products in France, Germany, Italy, and China. APH is the only enterprises in Vietnam as well as one of the five representatives in Asia which are members to the European Bioplastics Association.

Besides connecting with Korean partners, APH is drawing up a strategic plan to export its products to the US and North America. In the coming time, the group will expand its business portfolio into different sectors like agriculture, fisheries alongside consumer goods.

To reduce product price, APH is building a new factory to manufacture compostable products with a closed-loop production process.