DUY TAN PLASTICS' STRATEGY FOR INTERNATIONAL EXPANSION AND TRANSFORMATION

Corporate Governance News
08/02/2023

As its name suggests, Duy Tân Plastics is embarking on a new journey with many groundbreaking changes. Becoming a member of one of ASEAN's leading groups and implementing a high-end product strategy has significantly enhanced the brand image of this 36-year-old reputable plastic brand in Vietnam.

International Expansion

The year 2021 marked a significant change for Duy Tan as it officially became a member of SCG Packaging (SCGP) - one of Southeast Asia's leading conglomerates. According to Forbes, SCG is among the Top 500 largest companies in the world, operating in three main business areas: Cement - Building Materials, Petrochemicals, and Packaging, with over 200 member companies. In Vietnam, SCG Group currently manages more than 25 subsidiaries, including industry leaders such as Go-Pak, Binh Minh Plastics, Tien Phong Plastics, Tin Thanh Packaging (BATICO), Bien Hoa Packaging (SOVI), TPC VINA Plastics & Chemicals, Prime Home, Long Sơn Petrochemicals, etc.

Duy Tan's new logo after officially becoming part of SCGP

With a traditional foundation of over three decades as Vietnam's leading plastic brand, coupled with the resources from a leading regional group, Duy Tan has embarked on a journey to "reach international levels." This merger allows the company to have stable and competitively priced raw material supplies and expand its export markets to regional and global levels. In 2022, the company achieved an export turnover of over 36.4 million USD and ranked among Vietnam's most reputable exporters.

Duy Tan's leaders also emphasize international standards. For many years, the company has been striving to build superior production processes, owning five modern factories in Ho Chi Minh City, Long An, and Binh Duong, with a total area of over 267,476 square meters and an average production capacity of 116,000 tons of plastic products per year.

Duy Tan's factory with superior production technology

Notably, Duy Tan's safety, legality, and quality management system meets the global BRC Global Standard (UK) for cosmetic packaging products, certified by Intertek (USA). Duy Tan is also the pioneering rigid packaging and household goods manufacturer in Vietnam to achieve ISCC PLUS certification (2022). This certification is granted by the International Sustainability and Carbon Certification (ISCC) and is applicable worldwide for organizations with superior carbon management and sustainability across the entire supply chain.

With its strong development potential, Duy Tan was valued by Forbes Vietnam at 20.4 million USD and is the leading household plastics company in Vietnam. The company is confident in achieving its goal of becoming ASEAN's top plastic manufacturer.

Innovation and Sustainable Development

One of Duy Tan's strengths is the quality assurance of its products, from raw materials to design, production, and completion. Management changes and production improvements have brought a "new breeze" to Duy Tan's products over the past three years.

In addition to the traditional products loved for the past 36 years, Duy Tan is scoring points with young customers by diversifying and developing mid to high-end product lines (Matsu, Matsu Lock, Plaxury) and expanding modern distribution channels (e-commerce), aiming for a smart and modern consumer experience.

In the household plastics segment, a series of new products, from essential items to modern furniture and kitchenware with youthful designs and colors, have been launched. The products are always voted "High-Quality Vietnamese Goods" (for 26 years) and "environmentally friendly products." A widespread distribution network also brings the company's products directly to customers. Currently, Duy Tan provides more than 2,000 products through 60,000 sales points nationwide, offering consumers a wide range of choices.

Matsu Lock brand products offer a modern consumer experience

In the packaging plastics segment, Duy Tan has become the preferred plastic packaging supplier for many global FMCG, cosmetic, and pharmaceutical brands such as Unilever, Nestlé, Pepsi, Carlsberg, Castrol, KAO, Sanofi, Rohto, Massan, Vinamilk, Nutifood, etc. Duy Tan's products are now present in over 30 countries worldwide, conquering demanding markets such as the USA, Japan, Europe, and Australia.

Duy Tan's consumer and industrial packaging products are also a strong point

Pursuing the ESG sustainable development strategy, Duy Tan actively implements many programs committed to sustainable development in Environment - Society - Governance, and towards a circular economy. Many campaigns have been and are being deployed, such as applying renewable energy - solar energy at factories; the "Exchange Old for New" project; "Trade Waste for Gifts" at supermarkets, schools, residential areas in Ho Chi Minh City; cooperating with SCG to implement waste sorting at the source.

The "Trade Waste for Gifts" program attracts young people to participate in waste sorting at the source

Amid economic difficulties, to "achieve better results with optimal resources," Duy Tân is creating a factor of change by focusing on investing in management systems, optimizing processes, and accessing potential markets. In the upcoming direction, Duy Tân will focus on researching and developing high-end product lines, applying new materials, recycling, and being environmentally friendly; bringing humanistic value to the community through meaningful campaigns, and continuing to affirm the new position of a "National Brand" and "Leading Vietnamese Brand."