VIET NAM NATIONAL UNIVERSITY OF HO CHI MINH

UNIVERSITY OF ECONOMICS AND LAW

Final Essay
DIGITAL TRANSFORMATION AND ARTIFICIAL INTELLIGENCE

Digital transformation application in An Phat Holdings

LECTURE: Master. Nguyễn Thế Đại Nghĩa

Course ID: 221MI5207

MEMBERS IN GROUP 1
FULL NAME STUDENT ID

Nguyễn Thị Thu Thảo (C) K214162154

Hoàng Trần Thế Phúc K214162150

Võ Hồng Cẩm Tú K214060446

Bùi Vân Anh K214110829

Ho Chi Minh City, January 6th 2023.

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Members of Group 1
Point / 5
NO. Full name Student ID (Individual
Contribution)

1 Nguyễn Thị Thu Thảo K214162154 5

2 Hoàng Trần Thế Phúc K214162150 5

3 Võ Hồng Cẩm Tú K214060446 5

4 Bùi Vân Anh K214110829 1

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Acknowledgements
First and foremost, we would like to express our profound gratitude to all of the faculty
members at the Faculty of Management Information Systems who helped us complete
this project by providing the necessary knowledge, expertise, and information.
Additionally, we would like to express our sincere gratitude to Master. Nguyen The Dai
Nghia, our supervisor, for giving me the chance to do research and for their helpful
guidance during this research.
Finally, despite all efforts to execute the implementation process correctly, faults will
inevitably happen. As a result, we expect that teachers' and readers' suggestions will be
understood and welcomed.

Ho Chi Minh City, 01/2023

Group 1

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Commitment
We swore to say that the findings in the thesis were original work of ours, not a copy. The
information offered throughout the entire thesis is either personal or has been assembled from a
variety of sources. Every reference has been properly sourced and cited.
We will accept full responsibility for my comments and implement all necessary disciplinary
measures.

Ho Chi Minh City, 01/2023

Group 1

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Table of Content

Members of Group 1............................................................................................................ 1

Acknowledgements ............................................................................................................. 2
Commitment ........................................................................................................................ 3
Table of Content .................................................................................................................. 4
List of Figures ...................................................................................................................... 6
List of Acronyms ................................................................................................................. 7
ABSTRACT ........................................................................................................................ 8
I. Overview of the enterprise: .............................................................................................. 9
1.1 History of formation: ................................................................................................. 9
1.2 Vision and Mission: ................................................................................................. 10
1.3 Business model and Revenue model: ...................................................................... 10
1.3.1 Business model ................................................................................................. 10
1.3.2 Revenue Model ................................................................................................. 12
1.4 Business operation oveview: ................................................................................... 13
1.4.1. Field of activity: .............................................................................................. 13
II. Analysis of enterprise ................................................................................................... 18
2.1. SWOT and competitors analysis ............................................................................ 18
2.2. Solutions/ Recommendations ................................................................................. 21
III. Implementation ............................................................................................................ 24
3.1. Planning .................................................................................................................. 24
3.1.1. Timeline ........................................................................................................... 24
3.1.2. Resources estimation (Cost estimation) .......................................................... 24
3.2. Implementing .......................................................................................................... 26
3.3. Risk forecasting ...................................................................................................... 28
3.3.1. Internal risk ...................................................................................................... 28
3.3.2. External risk ..................................................................................................... 29

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IV. Conclusion ................................................................................................................... 30
4.1. Solution evaluating ................................................................................................. 30
4.2. Solution controlling ................................................................................................ 31
V. Group member peer evaluation form............................................................................ 34
VI. Proof of teamwork using Trello .................................................................................. 36
THE END .......................................................................................................................... 37
References ......................................................................................................................... 38

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List of Figures
Figure 1: Starting from a small factory, An Phat Holdings has now become a leading
multi-industry group in Southeast Asia. .............................................................................. 9
Figure 2: Business Model Canvas of AnPhat Holding ...................................................... 11
Figure 3: Business results 9M/2022 (APH)....................................................................... 12
Figure 4: Consolidated gross profitby industry 2022 ........................................................ 12
Figure 5: Cost estimation ................................................................................................... 25
Figure 6: 5 “WH” question to approach in An Phat Holdings .......................................... 31

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List of Acronyms

APH An Phát Holdings

IoT Internet of Things

BI Business Intelligence

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ABSTRACT
________________________________________________________________________

The business environment of An Phat Holdings is examined in the essay. APH has a
development history of about 20 years and is well-known, but since the Covid-19
epidemic, APH has endured several setbacks (namely, a decrease in revenue). In order to
recuperate the losses brought on by the pandemic, APH has established a new business
model and applied digital transformation to its operations. APH originally experienced
many difficulties, obstacles, and business activity limitations similar to other companies
pursuing digital transformation in various business activities.

The team has developed relevant recommendations that are supported by statistical
analysis after analyzing the existing state of APH, which is in the early phases of its
digital transformation. Actual proof, a market analysis,... in an effort to support An Phat
Holdings' further expansion.

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 I. Overview of the enterprise:

1.1 History of formation:

An Phat Holdings Group was established on September 27, 2002 with the
predecessor being Anh Hai Duy LLC. In 2005, the Group's first packaging factory went
into operation in Nam Sach industrial zone, Hai Duong with a designed capacity of 13,200
tons/year. By 2017, An Phat Holdings became the number 1 high-tech plastic enterprise in
Vietnam. Also in 2017, An Phat Holdings transformed into a group model, established
more member companies, and completed the business ecosystem. After two decades of
starting a business with relentless development efforts, from a small business named Anh
Hai Duy to a leading Group in Southeast Asia in the field of high-tech and environmentally
friendly plastic production in 2018, An Phat Holdings has gradually affirmed its solid
position in the market and achieved outstanding business achievements.

Figure 1: Starting from a small factory, An Phat Holdings has now become a leading multi-industry
group in Southeast Asia.

Up to now, An Phat has grown in many industries (including: industrial real estate,
engineering plastics and interior plastics, packaging, raw materials and plastic
chemicals,...) and owns 16 member companies. An Phat Holdings' products are also present
in 70 countries and regions such as the US, Japan, Europe, Arabia,...

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 As proof of its development efforts, An Phat Holdings and its member companies
have achieved many achievements: Vietnam Gold Star Award 2021, Top 100 largest
private enterprises in Vietnam 2021, Prestigious export enterprises, Top 10 listed
companies with the best annual reports in 2021,... and many other awards.

1.2 Vision and Mission:

Vision: To become the leading eco-friendly and high-tech plastic corporation in Southeast
Asia.
Core values: Creativity - Innovation, Solidarity - Discipline, Sharing - Humanity,
Efficiency - Sustainability.
Mission: Promote and support Vietnamese enterprises to develop together, raise the status
of Vietnam's high-tech and environmentally friendly plastic brand.

1.3 Business model and Revenue model:

1.3.1 Business model
As a pioneer in the green revolution of the plastic industry, An Phat Holdings has
been promoting the practice of the E-S-G criteria set - an acronym for Environmental, S-
Social and G-Governance (Corporate Governance), towards the positive results created for
the environment and society, ensuring the harmony between business goals and
responsibility to the community.
ESG is a complete and comprehensive set of standards in measuring factors related
to sustainable development and the impact of businesses on the environment, community,
economy - society. Thereby, businesses will identify roles, responsibilities and specific
actions to ensure the sustainable development of businesses and the country's economy.
These indicators will be clearly demonstrated through the following model:

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 Figure 2: Business Model Canvas of AnPhat Holding

With the role of supplying raw materials for manufacturing plants and products for
businesses, the greatest value that An Phat Holding can achieve is to maintain the rate of
returning customers. buy again.
Along with that, with the slogan "environment friendly plastic", enterprises have
increasingly affirmed their competitive position in domestic and foreign markets.
Especially during the recent Covid-19 pandemic, businesses have been greatly
affected by the supply of raw materials and production activities. However, with the
application of good digital transformation policies through good e-commerce platforms,
and the use of automation technologies in the production and logistics process, businesses
have been able to minimize losses.

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1.3.2 Revenue Model

Figure 3: Business results 9M/2022 (APH)1

In the first 9 months of 2022, APH achieved revenue of VND 13,326 billion and
EAT of VND 219 billion, up 30% and 22% respectively compared to the same period in
2021. Consolidated gross profit reached VND 1,367 billion , growing 14% compared to
9M/2021.

Figure 4: Consolidated gross profitby industry 20222

1
Source: AnPhat holding corporation
2
Source: AnPhat holding corporation

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 Revenue growth was mainly due to the increase in plastic resin price in the first half
of 2022 compared to the same period in 2021, leading to an increase in revenue from the
plastic product manufacturing and plastic resin trading segments and thanks to the main
contribution from the manufacturing segment. packaging and supporting industry.
Besides, An Phat's member companies have also brought positive revenue:
● Hanoi Plastics (NHH), consolidated revenue and profit after tax reached VND 1,726
billion and VND 75 billion, up 14% and 31% over the same period in 2021.
● An Tien Industries Joint Stock Company (HII) recorded accumulated business
results for the first 9 months of 2022 with consolidated revenue of VND 7,939
billion.
● Green An Phat Plastic (AAA): achieved revenue and profit after tax of VND 11,883
billion and VND 266 billion, up 33% and 5% respectively over the same period in
2021.

1.4 Business operation oveview:

1.4.1. Field of activity:

a. Packaging:
Thin film packaging is the first and core business of the Group, which has been
exported to nearly 70 countries, including especially fastidious markets such as Europe,
Japan, the US, and Australia.
b. Plastic materials and chemicals:
The business of plastic materials has been developed by the Group since 2009, with
the establishment of An Tien Industries Joint Stock Company. The main products provided
by An Phat Holdings are ANCAL branded plastic additives and superfine CaCo3 stone
powder.
c. AnBio biodegradable plastic products & materials:
An Phat Holdings is a pioneer in research, production and development of biodegradable
and environmentally friendly materials and products that meet international standards.
d. Precision mechanics and molds:

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Producing all kinds of injection molds, directly serving the production of automobile -
motorcycle and electrical - electronic components, developing the field of supporting
industries.
e. Engineering plastics and interior plastics:
An Phat Holdings has expanded its business of engineering plastics and interior plastics
with investment and development in Hanoi Plastics Joint Stock Company and a number of
member companies.
f. Industrial real estate:
With the investment in An Phat Complex and An Phat 1 Industrial Park in Hai Duong, An
Phat Holdings will provide a full range of closed services from human resources, financial
consulting to logistics...
1.4.2. Specific about business activities:

● Fully biodegradable materials and products:

- Producing and trading fully biodegradable products under the ANECO brand,
including: packaging, knives, spoons, forks, straws, gloves, cups,.....
- Biodegradable plastic production
● Packaging:
- Production of thin film packaging: T-shirt bags, shopping bags, roll bags, food
bags....
- Industrial packaging production: jumbo bags, sling bags
● Engineering plastics and interior plastics:
- Producing plastic components for cars, motorcycles, household appliances,
electronics, phones...
- Producing auxiliary plastic products: pallets, plastic crates....
- Producing ceiling panels, plastic floors, interior decorative moldings
● Raw materials for plastic industry:
- Production of plastic additives: PP beads, PE compound, color beads, filler,
masterbatch...
- Trade in PE, PP plastic beads
● Mold and precision mechanics:
- Manufacturing precision molds
● Industrial real estate:
- Sale and lease of land, factories, industrial parks

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 - Exploiting industrial park infrastructure services
a. Member companies:
As of December 31, 2021, An Phat Holdings Group Joint Stock Company has 16 member
companies as follows:

No. The company Main activities

1 An Phat Bioplastics JSC Buying and selling machinery, supplies, raw

materials for plastic products, manufacturing
and trading plastic products

2 An Tien Industries Processing stone and stone products

3 An Phat Complex Industrial park infrastructure development and

business.
4 An Phat High-tech Industrial Industrial Park infrastructure development and
Park Joint Stock Company business.

5 An Thanh Bicsol Singapore Specialized wholesale of PP, PE, PS, PVC,

PTE. Ltd ABS plastic beads....

6 An Thanh Biscol Plastic beads business.

7 An Tin Inter–Transport Joint Cargo transportation.

Stock Company

8 Hanoi Plastics Joint Stock Producing plastic components and accessories

Company for automobiles, motorcycles, electronic
plastic components.

9 An Trung Industries., Ltd Production of plastic beads, plastic products.

10 Export Import Development Producing plastic components and accessories

Investment Company Limited for automobiles, motorcycles, electronic
plastic components.
11 Công ty TNHH MTV Cơ khí Manufacturing products for mechanical
chính xác processing, metal processing and coating.
và Chế tạo khuôn mẫu Việt Nam

12 An Vinh Packaging JSC Producing plastic packaging products from PE

and PP fibers.

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 13 An Cuong High-tech Building Producing and trading plastic panels and
Materials JSC plastic floors.
14 My Anh Plastics Manufacturing Producing plastic in primary form.
Company Limited
15 An Phat International INC Investing and trading in thin film products and
other plastic products.
16 AFC Eco Plastics LLC Plastic beads business.

b. Business location:

An Phat Holdings Group owns a system of 16 factories producing plastic products

and materials. Headquarters, representative offices and branches of member units are
located in Vietnam, Singapore, Korea, France, and the United States. The Group's customer
network spans more than 70 countries and territories.

c. Factory:

Hai Duong Province (Vietnam)

07: Green An Phat Plastic JSC (AAA)

01: Vietnam Precision Mechanics and Mold Manufacturing One Member LLC (VMC)

01: An Cuong Hi-tech Building Materials JSC (ACP)

01: An Trung Industries Co., Ltd (ATI)

01: An Vinh Plastic and Packaging JSC (AVP)

Hung Yen Province (Vietnam)

01: Viexim Investment and Import Export Development Co., Ltd (Viexim)

Yen Bai Province (Vietnam)

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02: An Tien Industries Joint Stock Company (HII)

Hanoi Vietnam

01: Hanoi Plastics Joint Stock Company (NHH)

Wonju (South Korea)

01: ANKOR Bioplastics Co., Ltd (ANKOR)

70+: Export market

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II. Analysis of enterprise

2.1. SWOT and competitors analysis

a. SWOT

STRENGTHS WEAKNESSES
- The leading corporation in Southeast - The company's profit is not stable,
Asia in the field of high-tech, largely depends on market factors
environmentally friendly plastic (shipping cost, product price in the
production. market,...)
- There are 16 member companies and - APH's fully biodegradable products
developing many different fields. under the AnEco brand have a higher
- Doing business towards sustainable price tag than other conventional
values and protecting the interests of products.
people, nature and society. - The process of implementing digital
- Exclusively owns the technology to transformation has not been really
prepare and produce fully focused, leading to some business
biodegradable plastic materials and activities not being optimized.
meet the most stringent global - The Board of Directors holds great
standards for quality. power and their capacity is not really
- Having a professional working outstanding.
environment, company culture comes - Although the company has aimed to
from the word "people", always cares produce green and environmentally
about the spiritual life of employees friendly products, the main source of
and has attractive welfare regimes. revenue is still plastic particles, which
affects the long-term development of
the environment.
- Information technology has not been
applied intensively in system
administration, thereby not increasing
the efficiency of production and
business activities.
- The shareholders' investment is not
high, the stock price is still quite low
and the stock returns are uneven.

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 OPPORTUNITIES THREATS
- APH has cooperated with a Korean - The world market for plastic raw
partner to own an invention patent on materials dropped in price due to the
completely biodegradable materials, Russia-Ukraine conflict and the
the core factor that determines the epidemic.
price of the product. - Public debt and state budget deficit
- Being a partner with many big brands increased.
such as Highlands Coffee, The Coffee - Increasing global competition in the
House, Daewoo Hotel, Lotte Hotel, international integration market.
Maian Bakers, Soc & Brothers... - Climate change affects the
- With the signing of the EU-Vietnam environment and people's quality of
Free Trade Agreement (EVFTA), life.
import tax on Vietnamese plastic - Government policy on the Law on the
packaging products into the EU will be restriction/prohibition of single-use
reduced from 3% to 0%. plastic.
- The trend of green consumption is - Trade, import and export activities are
more obvious to consumers and forecast to be affected by blockade and
manufacturers in the domestic market. travel restrictions. Most of APH's input
- The circular economy has gradually plastic materials are imported,
shifted to the trend of green disruptions in the global supply chain
consumption with bioplastic raw may affect the company's material
materials. supply.
- The spread of the disease and the trend - The Company's stock value has fallen
of not being controlled in the US and sharply in the past 2 years, thereby
Europe also did not have much impact reducing the company's revenue.
on APH's packaging consumption, - An Phat's main competitors are Jufeng,
because this is a product associated Hung Yen Plastics, Vinh Du, CEDO,...
with essential consumption activities with many development orientations,
(mainly used to store food and they will probably surpass APH in the
garbage). future.

b. Competitors analysis
At the present time, following the strong development trend of the economy,
competition is considered an inevitable thing. The emergence of more and more new

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businesses in the same field has been and is a potential threat to the development of An
Phat Holdings.
● Domestic enterprises in the same industry:
Currently, the number of enterprises operating in the field of bioplastic production in
Vietnam is more than 400 enterprises. In which, the list of 15 largest enterprises in this
industry includes 5 joint stock companies and 10 limited liability companies. Some
businesses that are popular with consumers and occupy a large market share in the industry
today can be mentioned as: Coffee Bio-Composite - Veritas Vietnam Joint Stock Company,
Pridevn Packaging - The Company Pridevn Packaging, General Plastic Packaging II -
General Trading Production Company Limited II.

In a time when the economy is constantly developing, whereby the people's economic
resources are gradually improving, the need to improve life is increasing, and the
requirements for diverse designs, quality as well as Reasonable price has become the
competitive goal of enterprises.
● International companies in the same industry:
Prestigious foreign companies are tending to expand their operations to the Vietnamese
market. These are all big competitors, with a high level of prestige and brand awareness in
the plastic manufacturing market, such as BASF with its strong product of agricultural
mulch, Total Energies Corbion with other products. packaging products, Mitsubishi
Chemical with products used in food packaging such as disposable tableware, paper cups
and post-listing gas-proof packaging, Futamura with biofilm packaging products and
NatureWorks with products spanning multiple industries and categories, including rigid
and flexible packaging solutions; Food Service; health and personal care; durable products
in the household, appliance and electronic category; and 3D printed filament. Most of these
companies have advantages in governance and operations, more advanced technology as
well as services and highly qualified staff.
Up to now, the Vietnamese market is one of the potential markets in the eyes of
businesses as well as foreign investors. If in previous years, most of the foreign enterprises
with the leading amount of investment capital were enterprises from Japan, Korea, China,
and Taiwan, now, especially after going through During the COVID-19 pandemic, the
potential of the domestic market has been further consolidated and the "landing" of
businesses from ASEAN countries has begun to appear in business fields in Vietnam in
general and the industry. plastic production in particular.

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 2.2. Solutions/ Recommendations

The implementation of digital transformation into An Phat Group should be done

quickly and this is a top priority if the company wants to develop sustainably in the long
term.
● Automating production processes: The production process of a product of APH
has always followed a certain process and consumes a lot of labor in the segments
and people have to pay attention to many factors. such as input materials, melting
temperature, etc., which will lead to high production costs. To reduce that, An Phat
Holdings should invest heavily in technology, improve production processes to be
optimal, automate the production process will reduce labor costs as well as reduce
prices. into products, attracting more customers.
● Focus on developing logistics services in freight transport: An Phat Holding
enterprise needs to focus on promoting the development of An Tin Logistics
member company in order to reduce the cost of transshipment of goods and
materials between the group and the company. groups and partners, customers. This
not only significantly reduces costs but also saves a lot of time for businesses.
Thereby helping businesses have more new capital to implement digital
transformation projects.
● Applying Business Intelligence (BI) to support managers' decisions: APH's
managers have only made decisions based on their own knowledge and experience,
not using Artificial Intelligence tools to support, so sometimes the decisions are not
right, not bring high efficiency. BI-based decisions will bring greater accuracy by
transforming huge amounts of information into data that is important and essential
to your business. The application of BI will increase the efficiency of the company's
operational processes, as well as the managers will have a better understanding of
who their customers are and what they are in need of, thereby providing accurate
operations. sales and marketing.

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● Using the IoT (Internet of Things) system to manage data: The daily data that
APH has access to is extremely large: the number of products produced, sold,
employee information,... so if If not managed well, it will lead to difficulties in
receiving information. An Phat should use cloud platforms to manage data, this
platform also allows administrators to share information, information about daily
revenue will also be continuously updated and saved. Depends on how the company
organizes the storage. IoT will help a company a lot in data governance if the
company knows how to take advantage of it.
● Clearly identify which products bring the most profit for the company: The
company's management board, after being supported by BI and accessing detailed
information, will know which product lines / products are bringing The best revenue
for the company from which there will be a plan to focus on improvement and
development on those product lines, the company's revenue and profit will also
increase significantly.
● Improve the qualifications of the managers as well as the capacity of the
employees: The qualifications of the managers and the competence of the
employees play a decisive role in the success of the business. Although there are
tools to support the most important things, the core is still people, so the company
attaches more importance to this issue if it wants the business to develop in the long
run and gain more foothold in the market. domestic and foreign schools. An Phat
should organize monthly fixed training sessions as well as organize more frequent
qualification testing sessions of employees to improve their knowledge and skills.
● Analyze customer feedback effectively with Machine learning: Collecting
customer feedback is a great way to help businesses understand the strengths and
weaknesses of their products and services. Here businesses can use computer
languages such as R, Python, C#, .. to collect customer data on the company's
website or through survey forms. Then use machine learning algorithms to analyze
and propose solutions. An Phat's application of technologies to collecting those
opinions of customers and analyzing them to find out what they are not satisfied

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 with about the product will help businesses come up with appropriate strategic
solutions.
● Building a Research and Development team: The issue of market share of
enterprises in the market is at a high level of competition when our country is having
a policy of expanding international cooperation and allowing companies to have
100% investment capital. from abroad are allowed to participate in the market of
packaging and plastic production. Therefore, in order to research about market
trends and ways to develop green products, businesses need an R&D department to
do this.

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 III. Implementation

3.1. Planning

3.1.1. Timeline
Starting from 2022, APH will start digital transformation in a stronger and more
comprehensive way. To be able to convert digitally in the most perfect way, the company
should not be too impatient, but should take a slow approach. The company should
implement and complete its digital transformation within 8 years, starting in 2022 and
ending in 2030.
Strategic Roadmap

State 1 Focusing mainly on building IoT systems for companies and

01/2022-01/2024 administrators to better manage data.

State 2 Bringing BI into the enterprise system to support

01/2024-06/2026 administrators to make better and more accurate decisions.

Focus on building a Research and Development team to

State 3
continuously create new products that meet the ever-changing
06/2026-01/2028
needs of consumers.

State 4 Analyze customer feedback about our products to be able to

01/2028-10/2028 offer products and services that match their requirements.

State 5 Perfect, evaluate and continue to develop in the future.

10/2028-12/2030
3.1.2. Resources estimation (Cost estimation)
It is estimated that the majority of Vietnamese businesses invest 10-20% of their
costs in technology for digital transformation. Moreover, APH is one of the leading
companies in Southeast Asia in manufacturing high - tech and environmentally friendly
bioplastics, so APH is able to increase their invested cost of digital transformation to 15-
25%. From that, APH can affirm its brand, prestige as well as position in the international
market.
According to the announcement of the consolidated financial report for the third
quarter of 2022, APH recorded consolidated revenue of 13,326 billion VND, up 30%
compared to the same period in 2021, Profit After Tax (PAT) reached 219 billion VND,
up 22% compared to the same period in 2022. It is estimated that APH can invest 40 - 50

24
billion VND to make a breakthrough in digital transformation. With the invested cost, we
highly recommend for APH that:

Percent of digital
Execution Cost estimations
transformation costs

Building IoT system 45% 18 - 20 billion VND

Developing BI system 15% 6 - 7.5 billion VND

Building a Research and

30% 12 - 15 billion VND
Development team

Systems of analyzing
5% 2 - 2.5 billion VND
customer’s feedbacks

Evaluation 5% 2 - 2.5 billion VND

In estimation of Digital Transformation cost, including equipment investment costs,

talented human resources (Data Analysts, Market Analysts, Customer Consultants,
Research Specialists, etc.), cooperation with Outsourcing Company, marketing and
communication costs, employees training.

Figure 5: Cost estimation

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 3.2. Implementing

The timeline above is organized beginning from the beginning of 2022 with 5 particular
plans.

Plan 1: Focus on building IoT systems

In 2022, An Phat Holdings needs to focusing mainly on building IoT systems for
companies and administrators in order to better manage data

First, APH must first understand how to utilize IoT systems efficiently to enhance
production engineering, gather data for product improvement, manage resources
effectively, prevent waste, and eventually increase customer engagement by identifying
issues and streamlining procedures.

Next, after being able to apply it well to production and business operations, APH
needs to focus on improving the limitations of IoT systems, such as: In terms of security,
the system can provides low level of authenticity despite adequate security measures. In
terms of privacy, the use of IoT reveals large amounts of highly detailed personal data that
in some cases users do not actively provide such information, which causes a lot of
problems related to privacy. regarding privacy. And finally, IoT has its own set of rules
and regulations. However, because of its complexity, the task of compliance becomes quite
difficult. Besides, the design of IoT system is also quite complicated. Moreover,
deployment and maintenance are not easy either.

The cost in this plan fluctuates between 18 and 20 billion VND, accounting for 45%
of the total cost and this is the most expensive stage.

Plan 2: Bring BI into enterprise system

In 2024, An Phat Holdings should focus on bringing BI into the enterprise system
to support administrators to make better and more accurate decisions so that it can adjust
the direction of the business properly and more effectively.

By applying BI to enterprise systems, APH can make better decisions by displaying

current and historical data in the context of their business. Additionally, BI can be analyzed

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and leveraged to provide performance and competitor benchmarks to help APH run more
smoothly and efficiently. BI also makes it possible for businesses to easily detect market
trends to increase sales or revenue. And if BI is used efficiently and optimally, it can
provide the right data to help with everything from compliance to recruitment efforts.

This plan is the key step for innovation so the cost is estimated at about 6 to 7.5
billion VND, accounting for 15% of the total.
Plan 3: Focus on building a Research and Development team to creat new products

APH should prioritize investing in building an R&D staff in 2026 to stay on top of
trends and consistently provide new items that satisfy consumers' shifting wants.

This stage is the second most expensive stage in the plan, costing between 12 and
15 billion VND, or 30% of the total.

Plan 4: Analyze customer feedback to offer products and services

A customer-focused culture must always be maintained, and cultural management

must be implemented in response to changes in the effects of the business environment.
An Phat Holdings develops additional incentives, like as gifts and vouchers, for consumers
whose purchase invoice value reaches a specific threshold in order to sustain the
relationship between the company and its clients. In addition, APH must enhance the
abilities of the staff system, particularly speedy problem-solving, and reward staff for
successful completion of customer demands, strengthening their standing in the eyes of
clients.

Cost estimates for this long-term strategy range from 2 to 2.5 billion VND, or around
5% of the overall budget.
Plan 5: Perfect, evaluate and continue to develop in the future

Apart from cost estimations in 4 plans, APH also spends 5% of the total (equivalent
to 2-2.5 billion ) on evaluation.

In conclusion, the total cost fluctuates from about 40-47.5 billion VND for 5 plans.

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 3.3. Risk forecasting

3.3.1. Internal risk

Problems Substance
Risk of increasing cost It can be seen that more than 80% of An Phat holding's
of raw materials for products are mainly focused on plastic products. Therefore,
plastic production the price adjustment to increase or decrease greatly affects
the profit and business activities of the corporation. Along
with that, the high cost of input materials will cause the price
of the product to increase, causing customers to not want to
buy and leave the business.

Solution: Enterprises can limit losses from high input materials prices by making market
predictions in the plastic industry to estimate prices in each period. From there, there are
adjustments in production quantity and commodity prices. Or it is possible to reserve a
certain amount of raw materials in advance so that the price does not increase too sharply
in case of shortage of raw materials.
Risk of problems with Enterprises providing equipment and machinery for plant
raw material suppliers operation and maintenance are especially important. So
problems with partners will directly affect the quality of
products of enterprises. From there arise undesirable
consequences for customers and businesses.
Solution: Search and make a list of short-term suppliers. Set out strategies and sign long-
term development cooperation with partners. It is necessary to stock up on the necessary
amount of materials in each stage to respond if a situation occurs.

Risks on human Human resources in the process of digital transformation is

resources and work one of the important factors. They are pioneers in this
productivity process, having a high-quality workforce will make digital
transformation easy and successful. However, at present, the
number of people working in the field of chemical
technology in Vietnam is not high and the rental cost factor
is also an issue that needs to be solved.

Solution: Develop human resource policies in accordance with the remuneration, bonus
and social benefits for talented employees. There are specific development strategies that
employees can stick to and implement with high productivity.
The production lines Vietnam's plastic and packaging enterprises are still
and machines are still competing in the low-end segment, the biggest barrier is

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 outdated 0still the technical barrier. Outdated production capacity,
machinery and technology make product quality not high and
competitive. Many businesses have not dared to invest, up to
70% of machinery is old machines imported from China.

Solution: Develop human resource policies in accordance with the remuneration, bonus
and social benefits for talented employees. There are specific development strategies that
employees can stick to and implement with high productivity.

3.3.2. External risk

Problems Substance
The market for plastic In the production and packaging system, there is no external
production is not specialization in the process, so the product quality is
profitable and has high unstable and the added value is low. Despite the strong
potential for growth development in recent years, Vietnam's plastic industry is
still mainly known as an economic and technical industry in
plastic processing, while it is not fully active in the source of
raw materials. inputs for production. Therefore, the business
profits from selling products are based only on the cost of
price difference and cheap labor

Solution: To improve this requires cooperation from both businesses in the plastic sector
and the support of governments in enhancing the growth potential of this market.

Increased competition By the end of 2022, Vietnam has signed 15 FTAs. This also
through free trade means that the trade between domestic companies is
agreements between increasingly open. However, it also means that domestic
countries (FTA) companies also face great challenges from competing
companies in the same industry, especially in the plastic
market. In which, some plastic packaging companies with
more competitive prices than An Phat Holdings can be
named Reifenhauser Group (Germany) or some
BillerudKorsnäs companies that have factories in the UK and
Finland also enter the market in Vietnam.
Solution: An Phat Holdings enterprise needs to import, innovate and create. Learn and
hone the technologies and production lines of other companies and enterprises. Thereby
creating a stepping stone in the process of digital transformation. Along with that, it is
necessary to seize opportunities and opportunities to expand the market and scale.

29
 Risks of political and It can be seen that a multinational enterprise wants to operate
cultural events. and develop well in different markets in different regions,
what they need most is to learn about the culture and politics
there. Not only that, culture and politics will also directly
affect the supply and production process of enterprises. An
example in recent times is the conflict between Russia and
Ukraine. This has greatly affected the supply of raw materials
to An Phat Group and also affected the market expansion to
these markets.

Solution: Find out about the culture and market that the business is targeting. Research
and explore policies in that area to come up with appropriate access strategies for the
penetration market. It is necessary to draw up contingency scenarios for many cases
before entering a certain market.

Risks about the trend of Currently, according to a research survey, it is shown that
using products of the more than 68% of people use recycled packaging that is not
market as effective as using natural products. For the same reason,
some markets are now trending away from single-use plastic
packaging, but instead use products of real origin or eco-
friendly items. high environment. Along with that, the
"Green Life" trend that is blooming and developing strongly
in young markets is also threatening many companies in the
field of plastic.

Solution: building research and product development departments in line with market
trends. Listen to and fulfill the wishes of customers, eliminate products that do not have
potential and cause great harm to the environment. Focus on building a business towards
environmentally friendly products.

IV. Conclusion

4.1. Solution evaluating

The IoT system will help businesses store and manage current information more
easily and logically. Good management of their data, combined with BI tools,
administrators will be able to make accurate and timely decisions, related to the
development of the company. What the company cares most about is probably the quality
of its products as well as the customer's experience with the company's products. So, using

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machine learning methods in conjunction with skilled teams will help solve customer
dissatisfaction issues and continue to develop better versions of products in the future.
The digital transformation as well as the combination of many methods will help
businesses save manpower as well as save a salary for them. This also makes it easier for
the company to resolve outstanding issues. Digital transformation is a necessity. If it wants
to stand firm in the future, APH must make the transition now, in the most complete way.

4.2. Solution controlling

In order to ensure that the implementation of An Phat Holding's ideas in the process
of implementing digital transformation in enterprises will be implemented in a more
optimal way and to be able to prevent fraudulent and non-transparent actions of the
company. employees, it is essential to establish a system of process control. This control
system will bring together all the things that a company needs to do to achieve its
objectives. This system will control issues at stages such as evaluating the performance of
departments, checking and reviewing systems and policies on the company's operating
level while implementing the process. number converter. The steps to implement the
system implementation include:
Step 1: Building
First, in order for this control system to help An Phat control and achieve its goals,
the enterprise must first determine its goals and how to apply this system. Here the
proposed team can use the 5 "WH" question model to research and find out what needs to
be done when building this model, the questions will answer for each item below:

Figure 6: 5 “WH” question to approach in An Phat Holdings

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 Therefore, after answering the above 5 questions, the enterprise will find the main
target audience in the implementation of this control system. Along with that, this problem
will also help An Phat solve the problem of human resources, with the answer to this
question An Phat will be able to supplement and replace employees to operate and use the
monitoring this system.
Step 2: Execute
After finding out the purpose and content to implement this system; In combination
with building management human resources for implementation, enterprises need to use
systems to manage resources such as ERP or SAP during the application process. These
systems will help An Phat Holding to evaluate and promote the roles of the departments
and consider the effectiveness in the management and application of the system. This
system should have 5 components as follows:
Control environment:These are the company's factors that affect the operation of the
internal control system and that create the environment in which all members of the
company are aware of the importance of the internal control system. Set.
Measures to identify risks: Regardless of size, structure, type or geographic location,
any company can be impacted by risks arising from internal or external factors. Therefore,
the internal control system should have a part to identify risks.
Internal factors: That is the management lacks transparency, does not respect
professional ethics, low quality of staff, breakdown of computer systems, equipment,
infrastructure, organization and infrastructure is not changes to keep pace with the
development and expansion of production, high management costs, lack of adequate
inspection due to being far from the parent company or due to lack of interest…
External factors: These are technological advances that change operating
procedures; consumer habits about products/services; appearance of unwanted competitive
factors affecting prices and market shares; new law or policy…
In order to avoid damage due to impacts from internal and external factors, you need to
regularly determine the level of existing and potential risks, analyze their effects, including
the frequency of occurrence, from there. outlining measures to manage and minimize their

32
harm. In addition, the company's internal information and communication system should
be organized so that it can be accurate, timely, complete, authentic, easy to grasp and reach
the right responsible person.
Monitoring and appraisal factors: This is the process of monitoring and evaluating
the quality of internal control implementation to ensure it is implemented, adjusted as the
environment changes, and improved upon defects.
Step 3: Evaluate and improve
After a long time of implementing monitoring management systems, enterprises
need to periodically check and monitor the operation of the system. Thereby taking
measures to overcome the limitations and improve the system better and better.
In addition, to help the system operate smoothly in the long run, businesses need to
build a good operation team. At this step not only helps enterprises to check and review
the system, but this is also a step for An Phat Holding to improve and upgrade the system
in line with the market, focusing on becoming a leading enterprise in application
implementation using digital transformation.

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 V. Group member peer evaluation form
GROUP MEMBER EVALUATION FORM

Group Student ID Full Assigned task Percentage Self- Group Note

member name of performance assessment
completion assessment (scale
(scale from from 1 –
1 – Very Very bad
bad to 5 - to 5 -
Excellent) Excellent)
1 K214162154 Nguyễn Overview:
Thị Acknowledgements and 100%
Thu Commitment, References
Thảo Section 1: Write History of 5.0 5
formation, Mission and 100%
Vission
Section 2: SWOT analysis
and give 100%
solutions/recommendations.
Section 3: Write Planning. 100%
Section 4: Solution
evaluating. 100%
2 K214162150 Hoàng Section 1: Research and 100%
Trần analyze business model
Thế canvas, and revenue
Phúc Section 2: Provide solutions 80%
5
and proposals to solve
problems for businesses
Section 3: Risk forecast 100% 4.99
Section 4: Solution Control 100%
3 K214060446 Võ Overview: Abstract, The 100%
Hồng End.
Cẩm Section 1: Business 90%
Tú operation overview
Section 2: Competitors 85%
analysis 4.5 5
Section 3: Implementing 100%
Section 4: Solution
evaluating 100%
4 •
K214110829 Bùi 0% 1 Failure to
Vân contribute
Anh during the
work.

34
• Often late
deadlines and
unsatisfactory
submissions.
• Slowing the
progress of
the group

35
VI. Proof of teamwork using Trello

36
THE END
We had the chance to cultivate new knowledge when examining An Phat Holdings'
digital transformation process after carefully analyzing, inquiring, and inquiring deeply
about the assigned. From there, we were able to offer solutions that were in line with the
realities of the Vietnamese market for the production of bioplastics in order to both advance
the market's strengths and address its existing problems. For An Phat Holdings, learning to
do this in the age of digital transformation is a lengthy and difficult journey. Every success
will teach APH important lessons for the future, as will challenges and overcoming
adversity.

Digital transformation has been opening up numerous chances and prospects, but also
few opportunities, given the trend of global economic integration, robust trade
liberalization, and people's capacity to adopt technology in the modern period. For each
firm that has been active in the bioplastic manufacturing industry, there have been less
difficulties and obstacles. In order to be able to take advantage of opportunities and
overcome challenges in the development of the bioplastics industry in the digital era, each
enterprise must make internal efforts. Additionally, the government, economic
organizations, and, most importantly, customer support, must pay attention to and direct
investment toward this endeavor.

As a result, the evaluations in our exercises might not be accurate and are still
subjective. So that our report may be more full, I would like to collect more contributions
from the faculty members as well as the students.

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References
[1] Khánh Vân, 28/10/2022, 9 tháng, các công ty trong hệ sinh thái An Phát Holdings
(APH) kinh doanh ra sao?, tại: https://kinhtechungkhoan.vn/9-thang-cac-cong-ty-trong-
he-sinh-thai-an-phat-holdings-aph-kinh-doanh-ra-sao-155667.html, truy cập ngày:
1/2/2023.
[2] An Phát Holdings, Thông tin tập đoàn, tại: https://anphatholdings.com/thong-tin-
tap-doan.html, truy cập ngày 30/12/2022.
[3] Linh Anh, 28/10/2022, An Phát Holdings (APH) báo lãi 9 tháng tăng 22%, tại:
https://www.tinnhanhchungkhoan.vn/an-phat-holdings-aph-bao-lai-9-thang-tang-22, truy
cập ngày 05/01/2023.

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