On July 24, 2025, a working delegation including representatives from the VSUEE Project, representatives from SHB Bank (Program Implementing Entity – PIE), and other participating commercial banks (Participating Financial Institutions – PFIs) paid a site visit to the Tu Phuong AD Star Bag Factory, a subsidiary of Plastic Chemicals Group Joint Stock Company. This activity belongs to Component 2: Technical Assistance of the VSUEE Project, as part of the task “Capacity Building for Participating Financial Institutions (PFIs) and Program Implementing Entity (PIE).”
The objective of the visit was to assess the factory’s current energy management and consumption practices, thereby enabling stakeholders, especially PIE and PFIs, to gain a more comprehensive understanding of how enterprises implement energy efficiency (EE) solutions in practice, including administrative, technical, and technological measures. Based on this assessment, the banks can develop appropriate financial models and lending strategies tailored to the specific needs of enterprises under the Risk Sharing Facility (RSF).
The delegation visited and worked at Tu Phuong AD Star Bag Factory.
Overview of Tu Phuong AD Star Bag Factory
The factory currently operates four modern packaging production lines with a maximum capacity of 270 million bags per year (~23,000 tons/year), with an annual average output of approximately 230–240 million bags. Core products include: single-layer bottom-sealed PP bags, double-layer bottom-sealed PK bags, and BOPP laminated bottom-sealed bags.
Equipped with production lines imported from Starlinger (Austria), the plant operates a closed-loop process including the stages: yarn extrusion – weaving – coating – printing – lamination – cutting and sealing. The plant uses 100% electricity and is certified with international standards such as ISO 9001:2015, ISO 14001, and FSSC 22000 for food packaging.
Commitment to Environment and Energy
At the Ad Star Tu Phuong Packaging Factory, a wide range of energy-saving measures has been implemented, focusing on management, technical improvements, and operational optimization to enhance energy efficiency.
In terms of management and administration, the factory develops annual energy efficiency plans with the target of “better than the previous year.” Regular awareness campaigns are conducted at the workplace, such as reminding employees to switch off lights, fans, and air conditioners when not in use, helping to instill habits and raise awareness about energy efficiency and conservation among workers.
During production, the factory places a strong emphasis on operational optimization. Minimizing the frequency of machine shutdowns—especially yarn extruders and coating machines—has helped save between 3,000 to 6,000 kWh of electricity per month. Additionally, maintaining machinery at 90–100% of design speed has increased production output by 2% per shift and reduced power consumption by about 20,000 kWh/month. Notably, in 2024, the defect rate dropped significantly, with 4,000 fewer defective bags per million compared to 2023, equating to a savings of approximately 7,000 kWh/month.
Air Compressor System with Inverter.
In terms of technical solutions, the factory strictly follows a scheduled maintenance regime and has upgraded its cooling system by switching from piston chillers to screw chillers, while also enhancing insulation for both thermal and cooling systems. The compressed air system has been significantly improved: five 75kW compressors were replaced with three 160kW inverters, resulting in substantial energy savings. Additionally, the entire lighting system has been converted to LED, with maximum use of natural light in workshops and warehouses to minimize electricity usage for lighting. The factory reports that after implementing these energy efficiency solutions, electricity consumption has decreased by 3.97% compared to 2022 and 2% compared to 2023.
The factory takes advantage of natural light.
The field visit to Tu Phuong AD Star Bag Factory not only provided an opportunity to observe real-world EE models being implemented effectively but also served as a platform to connect financial institutions, program implementers, and enterprises. By engaging directly with on-the-ground practices, PFIs and PIE gain valuable experience to design suitable financial packages, establish evaluation criteria, and identify promising sub-projects. This activity is a key part of the VSUEE Project’s strategy to promote sustainable industrial development, reduce emissions, and enhance the competitiveness of Vietnamese enterprises amid the green transition and global economic integration. |
VSUEE Project Management Board.