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Present by F4 group. Small space furniture cluster IN Vientiane. by Mr. Khao, Mr. Sak, Mr. Phom, Mr. Oaun (Bounkane). Target Cluster:. Small- space furniture Cluster in Vientiane. Location. Vientiane Vientiane is the capital of Lao PDR, which located in central of Laos - PowerPoint PPT Presentation
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Present by F4 group
by Mr. Khao, Mr. Sak, Mr. Phom, Mr. Oaun (Bounkane)
Target Cluster:
Location Vientiane Vientiane is the capital of Lao PDR, which
located in central of Laos an essential economic zone central of
education(many colleges, school, NUOL) more modern city than other, have many
hotels, apartments (small room)… there are a lot of SMEs who do furniture
business good infrastructure transportation and logistic
Description of Potential Members Small Space Furniture was located in
Chanthabouly District, which has more than 300 wood processing factories and furniture companies which employs about 5000 workforce.
Around the city there are transportation and logistic companies, textile factories; school and, Faculty of Forestry(National University of Laos) also were placed here which educate a lot of furniture workers
Client Products and Services Small space furniture Flooring Household items joinery products Design Repair and maintenance service Etc…….
The Cluster Diagram
CLIENTS
DESIGN needed
Local Suppliers
Wood Bank Kiln Drying Wood - Sizing - Cutting - Edging
Jointing Assembling Upholstering
Chemical
Finishing
Drying
Hardware
- Foam - Textile - ETC…
Showroom Customers Maintenance
School Design
Training centre
Art School
Marketing
Workers
SMALL SPACE FURNITURE
Assembling
Furniture Processing
The Cluster Diagram (Cont’)Products and Service of the SME cluster “ Small furniture space”
Previous Cluster or EC Initiatives Laos don’t have cluster yet
The Diagnostiques Survey Have many small size wood processing
factories run by households Mostly they make the same furniture with
different quality Low price (small value add) Limited skill, low technology, learn by
themselves New Hotels, Restaurants, office…
increase SSF’s demand NEED to create CLUSTER
Potential stakeholders SMEPDO TPPD( Department of Trade Promotion and
Product Development) LNCCI National University of Laos, Faculty of Forestry Lao Wood Industry Association and Lao
Furniture Association GIZ (representative from wood value chain) TFT/WWF Lao Forest and Trade Platform 3 SMEs (largest employment)
Cluster design
Who will be in the Cluster
- SME who have an experience at least 5 years
- Employ at least 10 workers
-
Cluster design (cont’) Incentives
- Organizing a study and business tour in neighboring country(Thailand, Vietnam)- Promoting clusters - Tax incentive- Marketing and Promotion (Better trading environment)- Business matching- Grace period for land (10 years)/ basic infrastructure- Soft loan- Technology transfer
Cluster design (cont’)
Technical Assistance Needed
- Training center
- Design school
- Faculty of Forestry (NOUL) Financial Assistance Needed
- SME fund
- Lao Development Bank (SME bank)
Cluster design (cont’)
Proposed interventions and Potential Sponsors
- JICA
- TDF
- GIZ
- WWF
Conclusions and Recommendations Conclusion
- As mention above: now market need a lot of SSF
- cluster has enough advantages to be able to remain competitive. Now we are ready to produce SSF
Recommendation
- Government should provide: tax credits, innovative financing for furnishings manufacturers, investments in furniture research and development and job training to enhance the skills of legacy manufacturing workers
- government could provide grants for researching innovation in furniture manufacturing.
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