The Company’s “Trash-to-Treasure” Secret: Breathing New Life into 20-25 Tons of Plastic Waste Daily, Transforming It into Construction Lumber.

Dong Do Trading and Services Co. Ltd was established in 2000, primarily providing scaffolding and formwork accessories for construction projects.

In 2018, Dong Do established and commenced the first phase of production at its Vision formwork factory in Long An. With the introduction of the Eco plastic formwork panel, Dong Do has utilized recycled plastic as a raw material, as well as implementing product recovery and recycling after use, reducing the need to fell trees for raw materials.

Currently, Dong Do can process approximately 20-25 tons of plastic daily, operating 24/7. This corresponds to a monthly processing capacity of 600-750 tons, producing approximately 25,000-30,000 panels per month, each weighing around 30 kg on average.

According to Mr. Dung, wooden panels have limitations due to their reliance on natural resources, which are subject to weather conditions and geographical constraints. As such, production costs tend to increase as these resources become scarcer. Thus, he sought an alternative material that could replace traditional ones while offering an abundant and easily controllable source of raw material.

Additionally, plastic waste is a pressing societal concern, especially single-use plastics. Plastic is, however, a versatile material that can be easily molded into various shapes and adapted for specific purposes. Hence, Dong Do embarked on research to transition from wood to plastic as a raw material.

INITIAL CHALLENGES

The director of Dong Do shared that transitioning to recycled plastic as a raw material also presented several challenges. For instance, when introducing a new product with a new input material, the initial production costs would inevitably be high. However, Dong Do anticipated that as the volume of recycled plastic waste increases, costs would decrease over time, whereas the cost of wooden materials would continue to rise.

Through investment in research and technology, Dong Do has been able to optimize the use of raw materials, reducing production costs. While prices were high initially, the cost of Eco plastic panels has since been lowered by approximately 40%. Mr. Dung stated that the company’s current focus is not on profits but on maximizing sales volume to utilize full capacity in the first phase and prepare for the second phase, which aims to increase production severalfold.

Additionally, the company convinces customers by highlighting the advantages of its products. While the initial cost may be higher, the long-term usage cost is lower due to the extended lifespan of the panels. Furthermore, as competition intensifies among construction companies, with technical capabilities becoming comparable, differentiation becomes crucial, and Dong Do’s products offer environmental and social benefits.

Given the higher product prices, Dong Do targets contractors and investors rather than direct consumers. By establishing these initial connections, the company can sustain production and work towards reducing costs.

Mr. Dung also shared that one of the biggest obstacles is the initial determination of the business owner. While it is commonly understood that creating valuable products from waste can be profitable, convincing colleagues and partners can be challenging. This requires a strong will and conviction from the leader, followed by the development of a suitable product and a well-defined target customer base, along with a clear vision for expansion.

Mr. Dung maintains that Dong Do’s target customers are construction material stores, as the company aims to reach as many consumers as possible, and these stores serve as the primary distribution channel to achieve that goal.

WHAT SETS DONG DO APART

While many other businesses are also engaged in the “turning waste into gold” narrative, Mr. Dung shared that Dong Do’s unique approach and perspective set it apart, reducing direct competition. Dong Do’s construction differs from other companies, which typically purchase recycled plastic pellets for their production. Instead, Dong Do organizes a collection system, sourcing waste plastic from scrap yards, placing orders for specific types and quantities, and arranging for collection.

Thus, Dong Do has established a process for converting discarded items like bottles and pipes into useful products, extending the lifespan of waste plastic. For instance, a plastic bottle typically reaches the end of its useful life once the beverage it contains is consumed. However, Dong Do repurposes this waste plastic into formwork panels, guaranteeing a minimum lifespan of 30 years. In essence, Dong Do prolongs the useful life of what would otherwise be discarded.

From a social impact perspective, using 1,000 Eco plastic panels reduces the demand for 1,000 wooden panels made from natural forest wood, equivalent to approximately 60 cubic meters of wood, which eventually becomes non-recyclable waste. In contrast, Dong Do, together with society, can contribute to reducing 30 tons of plastic waste with the same volume of plastic.

FUTURE GOALS

Currently, Dong Do recognizes the significant market demand for formwork panels made from derivative plastics, given their potential to replace various other products. Therefore, the company’s immediate focus is on producing the best quality Eco plastic panels at the lowest cost to supply the market with a large volume.

Dong Do’s factory operates 24 hours a day but still cannot meet the market demand. The company prioritizes serving the domestic market to ensure it has the time to adjust, improve quality, and reduce costs before venturing into exports with a competitive edge.

Mr. Dung shared that Dong Do’s plan is not merely to export but also to establish factories abroad, especially in developed countries.

Additionally, Dong Do aims to increase its processing capacity to 200-250 tons of plastic waste per day, with further expansion plans depending on market conditions.

“We often refer to ‘plastic waste,’ and when you can turn this waste into something valuable, the profits can be significant. However, the journey from this aspiration to an idea, and then from a product to finding customers and convincing them to use it, is challenging and certainly not easy,” said Mr. Dung.