An Phat Holdings: Biodegradable Plastics Gain A Foothold in The US Market

TK Bio-Based Materials reports: US President Joe Biden previously signed an executive order to implement a new initiative to encourage biotechnology research and application, which is considered to be an entry for bio-based products into the world's largest and most demanding market.

As the latest move to support the country's biotechnology products manufacturing industry, the executive order implements a new initiative to encourage technological research and biological applications. The initiative will promote the research and application of biotechnology in the pharmaceutical, agriculture, plastics and energy industries. As a result, the U.S. government wants to support domestic manufacturing of biotech products, rather than having new U.S. technologies used for foreign production.

According to the White House assessment, the bioeconomy remains a strength of the United States, providing tremendous opportunities for industry, inventors and businesses to conduct research in the field. Biotechnology has great potential as an alternative to petroleum products, which cause many unpredictable impacts on the environment and human health.

With the decree, companies developing biotechnology, including bioplastics, will have many advantages to develop in the US market, including An Phat Holdings, which has decades of experience trading and developing green products in the market. As Vietnam's leading high-tech environmentally friendly plastics company with a leading position in the development of compostable products and materials, An Phat Holdings has thrived in the US market over the past 10 years.

Explaining the reason for choosing this competitive market, the head of An Phat Holdings said that unlike some other countries in the world, the US government has many policies to promote the development of bioplastic products, and the potential of the bioplastic sector here is huge.

In particular, President Biden has just signed legislation encouraging biotechnology research and application, which is considered a solid stepping stone for An Phat Holdings' opportunity to increase its share of the bioplastics market in the United States. The need for federal agencies to increase "sustainable" sourcing practices will certainly increase the demand for bio-based products in the United States in the near future.

AnEco compostable products, with PLA and modified starch as the main components, have been successfully developed by An Phat Holdings since 2013 and have been well received by US consumers. AnEco products fully meet the requirements of the US market for a range of Compostable products, such as BPI Compostable.

In particular, AnEco successfully registered a trademark in the US for 10 years in March 2021. Together with the decree, this will be a strong incentive for An Phat Holdings to penetrate the U.S. market and invest heavily, especially when An Phat Holdings' PBAT Compostable Resin Plant is expected to begin production in the future.

Mr. Fan Yingyang, Chairman of AFA Holdings Group, affirmed: "North America, especially the United States, has always been the group's strategic goal to expand the international market. The compostable products and raw materials segment has been the Group's strength for more than a decade. With this new investment, the Group will bring different value to the global green materials supply chain."

Also under the legislation, the U.S. government will increase support and incentives for companies to develop bio-based product lines in the U.S. to create jobs for American workers. This is in line with the recent business development activities of AFA Holdings.

Currently, the Group has member company An Phat International in the United States, as well as associated companies such as AFC Ecoplastics. In particular, An Phat Holdings, through AFC Ecoplastics, has partnered with Nexeo Plastics, the world's leading plastic resin distributor, to distribute bioplastics in the US, Canada and Mexico markets. These biocompounds meet ASTM D6400 standards for industrial composting and types containing 30% or 80% biobase, respectively, and are often ideal for applications such as tableware, straws, bottle caps, and bottle caps.

What is certain is that it is wise for AlFA Holdings to embrace the "green" consumption wave and bring compostable products to the vast number of American consumers when many industry enterprises are hesitant to enter the US market. Especially with the decree just signed by President Biden to launch the National Biotechnology and Bioproduction Initiative, it is certain that business opportunities for An Phat Holdings in the United States will become more and more open, and "Made in Vietnam" compost products will gain a foothold in the world's largest economy.