on SME Cluster Development & utilisation of FTAs in CLMV · BCI Business Continuity Institute ... ITD Italian-Thai Development JICA Japan International Agency LBF Lao Business Forum

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Capacity Building Needs Assessment

on SME Cluster Development &

utilisation of FTAs in CLMV

February 2013

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ACKNOWLEDGEMENT The author places on record due thanks to all the participating agencies in the CLMV countries mentioned in this report for their valuable comments, suggestions and provision of data and consulted references. The author places on record due thanks to Dr. Suchat Katima, Director, Mekong Institute for his guidance and support in conducting the study, Mr. Saing Sophal (Cambodia), Ms. Aye Myat Thanda (Myanmar), Mr. Phetanong Insarn (Lao PDR) and Mr. Duc Bui Duy (Vietnam), YGMS Professionals of MI for their assistance in the field work. The author also acknowledges the help and assistance of Dr. Nittana Southiseng, SME specialist, MI and Ms Huyen Nguyen, Program Facilitator in finalizing the report. Madhurjya K Dutta Program Manager Trade & Investment Facilitation Makong Institute February 2013

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EXECUTIVE SUMMARY The three-year project (2012-14) on “Capacity Development Program for Integrating CLMV Economies into AEC” sponsored under the New Zealand Foreign Affairs and Trade Aid Programme (NZAP) is being implemented by the Mekong Institute, Thailand. The project aims to prepare the Mekong countries namely the CLMV (Cambodia, Laos, Myanmar and Vietnam) for the successful integration of their economic systems into the ASEAN Economic Community (AEC) by 2015. Among five components of the project, the Trade and Investment Facilitation Department of MI is tasked with the implementation of two components namely: (i) integrating CLMV’s Small and Medium Enterprises (SME) into ASEAN and Global Value Chains and (ii) increasing capacity of public and private sectors’ organizations in trade policy development, Free Trade Agreement (FTA) negotiation and implementation. In order to provide adequate information for the project inception report and results-oriented M&E plan, a need assessment study was conducted in the CLMV countries. The aim was to identify the roles and responsibilities of the relevant stakeholders and assess their capacities and identify gaps to define capacity building needs for developing a capacity development plan and capacity building packages and strategies to respond to the needs within the framework of NZAP Project. The assessment reveals that the prospect for consortia and SME clusters formation in the CLMV countries is potentially high, especially for products in handicraft and agro-based sector. However, the promotion of these activities is relatively weak, specifically in Myanmar and Cambodia, due to lack of knowledge and support services. The assessment study observed that in the CLMV countries, although FTAs and bilateral agreements, mostly through ASEAN, have been concluded, their advantages have not yet been fully realized by export-oriented SMEs. The awareness of FTAs and related policies both among governments and private sectors is relatively low. Very few trainings or workshops on these issues have been conducted or if any, the SMEs participation seems to be quite limited. The functionaries of SME and trade promotion agencies both in the government and private sector attend a range of capacity building programmes. The top level management deals with policy level issues and attends regional and internal events such as forums, seminar and dialogues whereas the mid level functionaries attends specific training on skill improvement, awareness, subject specific topics and training of trainers both within and outside the country. The top management level of private sector body (Chamber of Commerce and Industry) is mostly engaged policy advocacy forums. For the mid level functionaries, the types of training range from WTO, trade negotiations, AEC integration, trade fair and participation in trade exhibitions. It is noticed that there has been no specific training on FTAs or any training directed towards utilization of FTAs by SMEs.

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Though a range of trainings either on SME development or Trade development has been attended by the practitioners, it was reported that the scope for applying those skills has been significantly low. The trainings in most cases do not reflect the roles and responsibilities of the functionaries mostly in case of mid and junior level functionaries. Another, hurdle in the acquisition of skill and knowledge in trainings outside the country is the skill level which is not at par with participants from other countries in addition to low English language capabilities mostly among the junior level functionaries. Further, it was observed that most of the trainings attended abroad are advanced in nature and are not in consistent with the requirements of day to day functions of the organizations. However, the trainings provided within projects which are implemented by the organizations and funded by donors are relevant since these are built in programmes to enhance capabilities of the implementing agencies. The study also identifies key organizations as focal point in the project countries. The role of the key organizations would be to coordinate all activities specific to their organizational mandate, assist in target participant recruitment and follow up action plan implementation and other assigned roles. The importance of SME development through cluster approach is gaining ground as noticed in case of Vietnam and Cambodia however the knowledge is still limited particularly among the mid level and lower functionaries in all the CLMV countries. With regard to FTAs, the knowledge seems to be limited particularly its utilization by SMEs. There is no systematic approach or attempt made in any of these countries to enhance utilization of FTAs by the SMEs. The study acknowledges the importance to build capacities of the functionaries for SME cluster development and on enhancing utilization of FTAs by the SMEs. Since the role and functions of levels of functionaries are different, the study suggested specific capacity development packages for different level of functionaries and devise strategies to implement the two components of the project for the remaining two years of the project phase.

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TABLE OF CONTENTS ACKNOWLEDGEMENT ................................................................................................ 1

EXECUTIVE SUMMARY .............................................................................................. 2

LIST OF TABLES ............................................................................................................ 6

LIST OF FIGURES .......................................................................................................... 7

LIST OF ACRONYMS .................................................................................................... 8

Chapter 1: Background and Objective....................................................................... 11

1.1 Methodology and Approach .......................................................................................... 11

1.2 Assessment Period ......................................................................................................... 12

1.3 Assumptions ................................................................................................................... 14

Chapter 2: Baseline information on SME and FTAs ................................................ 15

2.1 SMEs in CLMV ............................................................................................................. 15

2.1.1 Cambodia ............................................................................................................. 15

2.1.2 Lao PDR .............................................................................................................. 16

2.1.3 Myanmar .............................................................................................................. 18

2.1.4 Vietnam ................................................................................................................ 20

2.2 FTA Status and Utilization of FTAs by SMEs .............................................................. 21

2.2.1 Cambodia ............................................................................................................. 21

2.2.2 Lao PDR .............................................................................................................. 23

2.2.3 Myanmar .............................................................................................................. 24

2.2.4 Vietnam ................................................................................................................ 25

Chapter 3: SME and Trade Development Initiatives ............................................... 28

3.1 SME Promotion Initiatives ............................................................................................ 28

3.2 Initiatives for FTA utilization ....................................................................................... 32

3.3 Constraints for SMEs to Export ..................................................................................... 36

Chapter 4: Donor Mapping on SME and Trade Development ................................ 38

4.1 Cambodia ....................................................................................................................... 38

4.2 Lao PDR ........................................................................................................................ 40

4.3 Myanmar ........................................................................................................................ 43

4.4 Vietnam .......................................................................................................................... 43

Chapter 5: Identified Organizations for Institutional Partnership ......................... 45

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5.2 Institutional Partners for Implementing Component C & D .......................................... 45

5.2.1 Component C: SME Cluster Development & Export Consortia ......................... 45

5.2.2 Component D: FTA Utilization by SMEs ........................................................... 46

Chapter 6: Capacity Assessment of Organization- Gaps and Capacity

Constraints................................................................................................. 48

6.1 SME development .......................................................................................................... 48

6.1.1 Cambodia ............................................................................................................. 48

6.1.2 Lao PDR .............................................................................................................. 52

6.1.3 Myanmar .............................................................................................................. 59

6.1.4 Vietnam ................................................................................................................ 63

Chapter 7: Capacity Building Needs for Target Groups and Strategies ................ 68

7.1 Strategies for Capacity Building and Revised Work Plan ............................................. 70

7.1.1 Component #C: Increased understanding of value SME clusters and export

network ................................................................................................................ 70

7.1.2 Component C3a&b: Market Intelligence ............................................................ 74

7.1.3 Component #D: Increased understanding of FTAs by SME exporters ............... 76

I. Component #C: Increased understanding of value SME clusters and export

network ................................................................................................................ 79

II. Component C3a & b: Market Intelligence ........................................................... 79

2.1 Develop Modular training package on product market intelligence .................... 79

2.2 Conduct five day training on product market intelligence for mid level officials,

junior level officials including IT personnel’s involved in trade promotion

activities, exporters, Chamber of commerce and other SME associations. ......... 79

Annex 1: List of Respondents and the agencies contacted:......................................... 80

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LIST OF TABLES Table 1.1 Assessment Period in CLMV Countries…………………………………….. 2 Table 2.1 SME Classification in Cambodia…………………………………………….. 6 Table 2.2 SME Classification in Laos…………………………………………………... 7 Table 2.3 SME’s Share in Domestic and Export Trade………………………………….8 Table 2.4 SME Classification in Myanmar………………………………………………9 Table 2.5 SME Classification in Vietnam………………………………………………10 Table 2.6 FTAs with Dialogue Partners………………………………………………...14 Table 2.7 Utilization of FTAs………………………………………………………….. 15 Table 2.8 Top ten exports – import commodities in Vietnam…………………………. 15 Table 2.9 Utilization of FTA……………………………………………………………16 Table 3.1 SME Promotion Initiatives…………………………………………………...19 Table 3.2 FTA Utilization Initiatives……………………………………………………23

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LIST OF FIGURES

Figure 2.1 Imports of Cambodia……………………………………………………….. 13 Figure 2.2 Exports of Cambodia……………………………………………………….. 13 Figure 2.3 Laos’ Main Trading Partner………………………………………………....14 Figure 2.4 Volume of Export Under FTAs between 2009 and 2010……………………17

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LIST OF ACRONYMS

AANZFTA ASEAN-Australia-New Zealand FTA

ACFTA ASEAN-China FTA

ACMECS Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy

ADB Asian Development Bank

ADF Administration Fee

AEC ASEAN Economic Community

AFAS ASEAN Framework Agreement on Services

AFTA ASEAN Free Trade Area

AHTN ASEAN Harmonize Tariff Nomenclature

AIFTA ASEAN-India FTA

AJCEP ASEAN-Japan Comprehensive Economic Partnership

AKFTA ASEAN-Korea FTA

APEC Asia-Pacific Economic Cooperation

APECEIP APEC Economic Integration Project

APO Asian Productivity Organization

ARTNET Asia-Pacific Research and Training Network

ASEAN Association of Southeast Asian Nations

ATF Access to Financial Services

ATIGA ASEAN Trade in Goods Agreement

ATPF Asian Trade Promotion Forum

BCI Business Continuity Institute

BDS Business Development Service

BIMSTEC Bay of Bengal Initiative for Multi-sectoral Technical and Economic

CBI Centre for the Promotion of Imports from developing countries

CCC Cambodia Chamber of Commerce

CEPT Common Effective Preferential Tariff

CLMV Cambodia, Laos, Myanmar, Vietnam

CLMVT Cambodia ,Laos, Myanmar, Vietnam, Thailand

CO Certificate of Origin

CUTS Consumer Unity & Trust Society

CWEA Cambodia Women Entrepreneur Association

DANIDA Danish International Development Agency

DDG Deputy Director General

DG Director General

DICA Directorate of Investment and Company Administration

DOIC Department of Industry and Commerce

EIC Economic Institute of Cambodia

EMF Export Management Fee

EOA Export Oriented Activities

ERIT Economic Research Institute for Trade

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ESS Environment and Social Sustainability

FAO Food and Agriculture Organization

FASMEC Federation of Association of Small and Medium Enterprises of Cambodia

FERD Foreign Economic Relation Department

FTA Free Trade Agreement

FTPD Foreign Trade Policy Department

FTPD Foreign Trade Policy Department

GDI General Department of Industry

GDP Gross Domestic Product

GIZ Deutsche Gesellschaft für Internationale Zusammenarbeit

GMO Genetically Modified Organism

GMP Good Manufacturing Practice

GPSF Government Private Sector Forum

GSP Generalized System of Preferences

GSP Generalized System of Preferences

HACCP Hazard Analysis & Critical Control Point

HRDME Human Resource Development for a Market Economy

IC Investment Climate

ICT Information and Communication Technology

IDRI Infectious Disease Research Institute

IED Import-Export Department

IED Import Export Department

IFC International Finance Corporation

ILO International Labour Organization

IT Information Technology

ITC International Trade Centre

ITD Italian-Thai Development

JICA Japan International Agency

LBF Lao Business Forum

LDC Least Developed Country

LJI Lao-Japan Human Resource Development Institute

LNCCI The Lao National Chamber of Commerce and Industries

LNCCI Lao National Chamber of Commerce

LSI Large Scale Industry

MDTF Multi Donor Trust Fund

MFI Microfinance Institution

MFN Most Favoured Nation

MI Mekong Institute

MOC Ministry of Commerce

MOF Ministry of Finance

MOIC Ministry of Commerce and Industry

MOU Memorandum of Understanding

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MPDF Mekong Private Development Facility

MPI Ministry of Planning & Investment

MWEA Myanmar Women Entrepreneurs Association

NBP National Bio-digester Programme

NEID New England International Donors

NERI National Economic Research Institute

NIFGS National Integrated Framework Governance Structure

NIS National Institute of Statistics

NPO National Productivity Organization

NUOL National University of Laos

NZAP New Zealand Aid Program

PPPD Provincial Public Private Dialogue

PPSMIA Phnom Penh Small and Medium Industries Association (PPSMIA)

RCEP Regional Comprehensive Economic Partnership

RETF Recipient Executed Trust Fund

RIA Roadmap for ASEAN Integration

SEZ Special Economic Zone

SICO Society for Implementation of Civil Obligation

SME Small and Medium Enterprises

SMEDPO Small and Medium Sized Enterprises Promotion and Development Office

SMI Small Medium Industries

SNV Netherland Development Organization

SPF Sasakawa Peace Foundation

SWAP Sector Wide Approach to Trade

TA Technical Assistance

TDRI Thailand Development Research Institute

TICA The International Cat Association

TIG Trade in Goods

TOT Training of Trainers

TPO Trade Promotion Organization

TPPD Trade and Product Promotion Department

UMFCCI Union of Myanmar Federation of Chambers of Commerce and Industry

UNCTAD United Nations Conference on Trade and Development

UNDP United Nations Development Programme

UNIDO United Nation Industrial Development Organization

USAID United States Agency for International Development

VAT Value-Added Tax

VCCI Vietnam Chamber of Commerce & Industry

WTE Waste To Energy

WTO World Trade Organization

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Chapter 1: Background and Objective

MI is implementing the three-year Project on “Capacity Development Programme for Integrating CLMV Economies into AEC” since February 2012. The project is being funded under the New Zealand Foreign Affairs and Trade Aid Programme (NZAP). In order to provide adequate information for the project inception report and results-oriented M&E plan, a need assessment study has been conducted in the CLMV countries. The terms of the reference set for the study are:

1) To develop an inventory of past and current efforts to address issues in SME Clusters and Cross-border Trade and Investment (SME Clusters, Export Consortia, FTA utilization, etc.) including the organizations (local, national, regional and international) involved in these efforts.

2) To identify the roles and responsibilities of government agencies, internal and external organizations, and other relevant stakeholders and assess their capacities. These include concerned agencies at provincial and national levels.

3) To identify gaps, characterize the critical capacity constraints and define specific capacity building and training needs for each target group.

4) On the basis of the assessment results, develop capacity development plan and different Capacity Building packages & strategies to respond to the needs (within the framework of NZAP Project)

5) To revise the project work plan and budget to be on line with the new CB packages and strategies.

Based on the above reference terms, the study adopted the following methodological approach:

1.1 Methodology and Approach

The study covers two components of the project- SME Cluster development and Export Consortia formation and Utilization of FTA by SMEs. Guided questionnaire was used to elicit information, discussion with key informants at different level of the organizations related to trade and investment promotion both at national and provincial level. Secondary information was sourced to present the scenario of SME cluster development for export market and the status of FTA’s and their utilization by SME.

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The field information was collected from the agencies involved at national and provincial level for SME promotion and Trade development. The provincial level information is primarily based on cross border trade issues and prospects. Face to face interview and focused group interviews were conducted with 24 respondents in Myanmar, 16 in Lao PDR, 20 in Cambodia and 18 in Vietnam. These respondents represent both the government and private sectors from national level and provincial organization and International development organizations involved in SME promotion and trade. The information collection is structured as below: 1) Listing of institutions both at national and provincial (sample border provinces)

involved in SME and trade development. 2) Developing an inventory of projects/efforts made in the past and ongoing on SME

cluster and Trade development with reference to FTA. 3) Capacity Assessment of the division, unit and persons of each institution with

direct responsibilities in SME development and FTA and Trade development. 4) The institutional framework and enabling environment is evaluated to present the

existing situation. 5) Specific trainings received by staff of the agencies in areas of SME

development/cluster and FTA/WTO/trade policy/negotiations, etc, are evaluated to assess existing capacities and identify gaps

6) To identify specific training packages as recommended packages and suggest strategies to respond to the needs.

1.2 Assessment Period

Field visit was undertaken in all of the four project countries- Cambodia, Laos, Myanmar and Vietnam (CLMV).

Table 1.1 Assessment Period in CLMV Countries

Cambodia The assessment was conducted in Cambodia from 10th to 14th December

2012 in Phnom Penh, Pailin and Battambang. The team interviewed and held group discussion with 20 respondents as follows: 1) At the national level, the key respondents include General Directorate

for International Trade, Trade Promotion Department and Product Development office under Ministry of Commerce. Under Ministry of industry, Mines and Energy discussions were held with senior official of the General Department, National Productivity Centre of Cambodia. The President and the office bearers of the Federation of Association of

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Small and Medium Enterprises of Cambodia (FASMEC) and Cambodia Women Entrepreneurs Association were interviewed. VBNK, a training institute was also included in this assessment study.

2) At the provincial level. The team held discussion with the Provincial department of Commerce in Batambang and Pailin and Chamber of Commerce and Industry in Battambang.

The team held discussion with JICA mission team in Cambodia to learn about their activities and also to introduce MI ongoing project on SME cluster development.

Laos The assessment team conducted capacity needs assessment in Laos from

3rd to 7th December 2012 in Vientiane and Khamoune province. The team interviewed with 16 respondents as follows: 1) National level respondents included senior and mid level officials from

Foreign Trade Policy Department, Department of Import and Export (Border Trade Division ), SME Promotion and Development office, Economic Research Institute for Trade under Ministry of Industry and Commerce),Lao National Chamber of Commerce and Industry SME Development Division and National Economic Research Institute under the Ministry of Planning and Investment.

2) At the provincial level, discussions were held with the provincial Department of Commerce and Industries and Chamber of Commerce and Industry of Khamoune province.

Myanmar The assessment team conducted capacity needs assessment in Myanmar

from 26th to 30th November 2012 in Yangon, Nay pyi Taw and Hpa-an. In this process, the team interviewed and held group discussions with 24 respondents as follows: 1) National level respondents included senior and mid level officials from

Central Department of SME Service Center under Ministry of Industry, Directorate of Trade, Myanmar Agricultural Produce Trading and Trade Training Institute under ministry of Commerce, Foreign Economic Relations Department under Ministry of National Planning and Economic Development and Union of Myanmar Federation of Chamber of Commerce and Industry and Myanmar Women Entrepreneur Association.

2) At the provincial level, discussions were held with the Minister of Border Affairs, Kayin State and Minister of National Planning and Economic Development, Kayin state besides officials from Kayin State Chamber of Commerce and Myanmar Agriculture Produce Trading

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3) The team also obtained information from other agencies involved in capacity development activities in Myanmar including Myanmar -Singapore Training Centre.

Vietnam The assessment team conducted capacity need assessment in Vietnam from

19th to 21st December 2012 in Hanoi. The team interviewed and held discussion with 18 respondents as follows: 1) At the national level, discussions were held with the officials of

Agency for Enterprise Development, International Cooperation division under the Ministry of Planning and Investment. For trade related information, discussion was held with Department of Multilateral Trade Policy Development, Vietnam Trade promotion Agency under the Ministry of industry and Trade. Besides, agencies under the Vietnam chamber of Commerce and Industry namely Vietnam Women Entrepreneurs Council and Small and Medium enterprise promotion center were covered under the assessment study.

2) The team also held discussion with the officials of The Institute of World Economics and politics under Vietnam Academy of Social sciences, ILO project office in Hanoi and CUTS International, Hanoi.

1.3 Assumptions

The recommendations of the assessment provided in this report are based on the following assumptions:

1. The national partners are identified and agreement is reached to collaborate in the project activities by nominating participants, provide adequate time to participants to implement action plans, join with MI to review progress and impact, collaborate in designing, follow up of action plans, adapt and localize training packages and cooperate in all other capacity development activities related to SME and Trade development.

2. The identified partners continue their SME and trade development efforts attaching priority to develop capacities for regional market integration.

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Chapter 2: Baseline information on SME and FTAs

2.1 SMEs in CLMV

2.1.1 Cambodia

As of March 2009, 376,761 enterprises were registered in Cambodia. Of these, 93 percent are categorized as Small and Medium Enterprises. According to the survey conducted by the National Institute of Statistics (NIS) in 2000 and the data from the Ministry of Industry, Mines, and Energy of Cambodia in 2005, almost 80 percent of Cambodian SMEs are engaged in food, beverages, and tobacco sectors; 13 percent of the SMEs are small-scale garment and textile, machinery and non-metallic operations; and 7 percent are furniture manufacturers. The SME sector is dominated by family businesses with less than 10 employees mainly processing primary products for the domestic market.

Source: The Ministry of Industry, Mines, and Energy of Cambodia in 2005

SME Definition

MIME defined small enterprises as those with less than 50 employees. Some ministries use either or both of these definitions, while others use different definitions, some based on asset value. The Cambodia SME sub-committee proposed the following definitions of enterprise size to be applied to all ministries.

Main sectors of SMEs SME Development Strategic Framework

2010-2015

Business enabling environment Skill development & technology

adoption Investment promotion and SME’s access

to finance, Business development services, and Economic linkage and industry

clustering.

Production sector including agricultural processing, manufacturing, and mining;

Service sector Trading sector including wholesales and

retails

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Table 2.1 SME Classification in Cambodia

Categories Employee number Assets excluding land US$ Micro Less than 11 50,000 Small 11 – 50 50,000 – 250,000

Medium 51 – 100 250,000 – 500,000

Large Over 100 Over 500,000 Source: The Ministry of Industry, Mines, and Energy of Cambodia in 2005

SME Policy and cluster development The Strategic Framework of the General Department of Industry (GDI) 2010-2015 identified core areas of intervention in five distinct pillars: (i) business enabling environment, (ii) skill development and technology adoption, (iii) investment promotion and SME’s access to finance, (iv) business development services, and (v) economic linkage and industry clustering. The last one on Economic linkages and industry clustering seeks to promote industrial and SME clusters in Cambodia through studies to assess issues, challenges and opportunities for cluster formation and developing an appropriate policy for promoting SME and industry clustering. GDI will also implement program on policy advocacy and industry awareness about economic benefits of the industrial cluster and assist industries and SMEs to form an appropriate cluster. SME export Very few Cambodian manufacturing SMEs are involved in export business. Rather than being processed in Cambodia, most of the country’s primary agri products, such as cashew nuts and paddy, are sent unprocessed to neighboring countries, where production is more efficient. These are then imported back into Cambodia as finished products. In Cambodia, Certificate of Origin (CO) allows exporters to take advantage of the preference system of the importing countries, such as GSP or MFN schemes. Exporters have to pay Export Management Fee (EMF) and Administration Fee (ADF). The cost varies from $10 to $30 depend on the quantity of goods. They also have to fill Form N and Form A. The CO is issued by the Ministry of Commerce.

2.1.2 Lao PDR

The economic census in 2006 reveals that there are 216,913 enterprises. Among them 196 (0.15%) are large; 1,081 (0.85%) medium; and 125,616 (98.98%) are small enterprises. In total, SME accounts for up to 99.83% of all enterprises in the country. The classification and number of enterprises in Laos are given in the table below:

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SME Definition

Small and medium sized enterprises (SMEs) are independent enterprises that are legally registered and operating. These are classified into the following size categories: Small enterprises are those having an annual average number of employees not exceeding 19 persons or total assets not exceeding two hundred and fifty million kip or an annual turnover not exceeding four hundred million kip. Medium sized enterprises are those having an annual average number of employees not exceeding 99 persons or total assets not exceeding one billion two hundred million kip or an annual turnover not exceeding one billion kip.

Table 2.2 SME Classification in Laos

Types No of employees Total assets Annual Turnover Small enterprise Less than 20 Less than 2 million

kip Less than 4 million Kip

Medium enterprises Less Than 100 Less than 1200 Million Kip

Less than 1000 Million Kip

Source: Report of Economic Census, 2006), National Statistics, Ministry of Planning and Investment Most of the SMEs in Laos are located in the central region including the Vientiane capital, Savannakhet and the Vientiane province.

The Small and Medium Sized Enterprises Promotion and Development Office (SMEPDO) facilitate the implementation of the Government policy and recommend measures for the SME promotion and development in Laos. SMEPDO assists SMEs in gaining better access to available financial resources. SMEPDO is establishing a Fund

Priority Areas to Promote SME Development-2011-2015

Improving the regulatory environment and public administration of economic activities

Improving access to finance Formation of new entrepreneurs Increasing the provision of support and business development service (BDS) Enhancing business linkages between large enterprises and SMEs Promoting the quality and standard of products and services of SMEs Enhancing access to markets and enlarge markets for SMEs

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Management Unit with $2 million to support SMEs. The Government of Laos also attempts to promote the agro-processing sector, especially organic vegetables. SME export

Almost 100% of the small enterprises and approximately 83% of the medium ones cater the domestic markets. The 2006 economic census reported that up to 124,656 (99.41%) small enterprises and 895 (81%) medium enterprises serve domestic markets. In case of large enterprises, 92 (50% ) sell products or services to domestic markets, while 50 (30%) exports to other countries. A total of 46 large enterprises (23%) serve both domestic and foreign markets. The table below presents SMEs’ shares in domestic and export trade.

Table 2.3 SME’s Share in Domestic and Export Trade

Market Small Enterprises Medium

Enterprises Large Enterprises

Domestic Market 124,878 (99.41%) 895 (82.79%) 92 (46.94%) Export 307 (0.24%) 59 (5.46%) 58 (29.59%) Domestic & Export 431 (0.34%) 127 (11.75%) 46 (23.47%) Total 125,616 (100%) 1,081 (100%) Source: Report of Economic Census, 2006), National Statistics, Ministry of Planning and Investment

2.1.3 Myanmar

Myanmar Government is giving great attention on the development of small and medium enterprises (SMEs) by forming a central committee for the development of the SME sector. The 27-member Central Committee for SME Development is chaired by President and assisted by two vice presidents. The central committee is tasked to formulate and promulgate laws, regulations and procedures for SME development. The task involved ensuring the government and private banks to effectively provide financial assistance for SME development. The committee is also responsible for establishing a network with local and foreign organizations to meet technical requirement, encouraging market development among SMEs from rural to urban areas, developing small and medium-sized support industries for local and foreign investment. All these efforts aim to promote a healthy environment for the development of market chains and human resource development ready for SMEs. According to the Ministry of Commerce, SMEs contribute 95% to the national economy and employ 70% of the workforce. 92% of SMEs are operating in the manufacturing sector. The available statistics on SME shows that in 2007, membership of the UMFCCI

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had reached 16,363 comprising of 10,854 local companies, 1,656 enterprises, 770 foreign companies, 185 cooperatives, and 2,898 individual members. SMEs today dominate most of Myanmar’s economic activity, accounting for 90% of the industrial sector and 99% of manufacturing sector. However, there is no data available on SMEs’ share in registered export/import enterprises.

Table 2.4 SME Classification in Myanmar

No.

Category Small

Medium Large

1 Power used (in horsepower 3 to 25 Over 25 to 50 Over 50 2 Number of workers 10 to 50 Over 50 to 100 Over 100 3 Capital outlay in millions of kyat Up to 1 Over 1 to 5 Over 5 4 Production value per year (mil k) Up to 2.5 Over 2.5 to 10 Over 10

Source: Ministry of Commerce, Myanmar The small medium industries (SMI) policy has been drafted which and is expected to be put in force by mid 2013. The policy recognizes the challenges, competition and opportunities of AFTA (ASEAN Free Trade Area) and AEC (ASEAN Economic Community) in 2015. The strategy involves:

Priority is attached to Export Oriented Activities (EOA) for promoting Small and Medium Industries (SMI). These efforts aim to enhance the national economic performance and increase the contribution of industrial sector to the national GDP at the rate of 30% by the year 2015; 40% by the year 2020 and 50% by the year 2030. Various support packages are given to SMI to remain competitive in the constantly changing marketplace. The packages are also designed to transform SMI to LSI (Large Scale Industry. At present, 18 Industrial Zones/Area has been established throughout Myanmar.

Main Pillars

(A) Support and nurture the development of i. Human Resource.

ii. Technology and iii. Innovation Encouragement. iv. Provision of Financial Support.

(B) Implement facilitating measures, namely:

i. To develop basic infrastructure. ii. To assist in market development modernization of Enterprises.

iii. To provide favorable Taxation System and Good working practices (i.e. efficient and simplified procedures)

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SME Export

Export data are categorized on product wise/sector wise. However, specific data on SME export is not available.

2.1.4 Vietnam

In Vietnam, the total number of registered SMEs is 400,000 (2011) and represent around 99 percent of the enterprises in the country. The SME sector employs 77 percent of the

workforce and accounts for 80 percent of the retail market. According to the Government statistics, over 40% of GDP is contributed by SMEs. SME Definition

The Vietnamese government defines SMEs by Decree 56/2009/ND-CP as follows:

Small and medium-sized enterprises are business establishments that have registered their business according to the law and are divided into three levels: very small, small and medium according to the sizes of their total capital (equivalent to the total assets identified in an enterprise’s accounting balance sheet) or the average annual number of laborers (total capital is the priority criterion), concretely as follows:

Table 2.5 SME Classification in Vietnam

Types/ Sector

Micro enterprise

Small enterprise Medium enterprise

No. laborers

Capita No. laborers Capita No. laborers

Agriculture, Forestry and Fishery

10 person or less

VND 20 billion or less

Between over 10 persons and 200 persons

Between over VND 20 billion and VND 100 billion


Industry and construction

10 persons or fewer

VND 20 million or less




Trade and services

10 persons or fewer

VND 10 billion or less

Between 10 persons and 50 persons



Source: Ministry of Industry and Trade

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Many SMEs in Vietnam have grown to be significant players in the industry sector, e.g, Nutifood Nutrition & Dairy, THP Beverage, Yen Viet and Masan food. These companies have in a little over a decade grown from small enterprises to become substantial players nationally and now are starting to be regional players as well. It is estimated around 7% of SMEs are engaged in export during the period of 2005-2010 (MPI, 2010)

SME export

In Vietnam, SMEs involved in exporting directly to international markets constitute only 16.8% with the share of direct exports accounting for 16.8%. This is quite less as compared with other countries in the region like Thailand which accounts for 34.7% in terms of SME shares of direct exports.

2.2 FTA Status and Utilization of FTAs by SMEs

2.2.1 Cambodia

Upon becoming a member of ASEAN, Cambodia became a part of the ASEAN Free Trade Area (AFTA) and ASEAN Framework Agreement on Services (AFAS). The scope of the agreements covers products and services defined on a sectoral basis, with a certain added value content and originating within the free trade area. The key mechanism to implement the AFTA is the Common Effective Preferential Tariff (CEPT). Under this agreement members agree to reduce customs duty on goods imported from any of the ASEAN countries at a rate between 0 and 5 % within a time frame of 15 years. In term of trade in services, Cambodia entered into the ASEAN Framework Agreement on Services (AFAS) process with among the most liberal regimes for trade in services in the ASEAN, at least on the basis of its GATS commitments. As result of the 8

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packages of negotiations under AFAS, Cambodia remains one of the most liberal regimes within ASEAN. Realizing that the tariff policy is the center piece of trade policy in a market system, in 2001, the Royal Government reduced the number of tariff bands from 12 to 4 with the maximum rate falling from 120 to 35 %. The tariff bands of 35 % protects several semi processed goods and consumer goods such as processed meat and dairy sectors, processed vegetables and fruits, wheat flour, beverages and tobacco, garments and footwear, plywood and jewelry. Under this tariff band fall a fifth of all imports. By the end of 2002, the Ministry of Economy and Finance reduced the un-weighted average tariff rate to below 15 %. The major import commodities of Cambodia are Petroleum products, Cigarettes, Gold, Construction materials, Machinery, Motor vehicles, Pharmaceutical products. The Major Cambodia’s import partners are Thailand, Vietnam, China, Hong Kong, Singapore and Taiwan.

Figure 2.1 Imports of Cambodia The major import categories are Petroleum products (31% of total imports), materials for textile and garment production (20%), equipment and materials related to investments, and other goods such as cars, electronic goods, food, etc. The major export commodities of Cambodia include Clothing, Footwear, Timber, Rubber, Rice, Fish, Tobacco, and Cassava. The major Cambodia’s export partners are the US, EU, Canada, China, Japan Korea, Vietnam.

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Figure 2.2 Exports of Cambodia

Bilateral trade relations with Thailand are growing stronger. Cambodia imports around US$ 2 billion worth of products from Thailand and export US$90 million, mainly agricultural products to Thailand, (Source: FTA Country Report of Cambodia, General Department of International Trade, Ministry of Commerce, Cambodia). Thailand has approved a list of 310 items granted to Cambodia in the framework of the ASEAN Integration System of Preferences to boost trade with the country. Under the ACMECS (Ayeyawady-Chao Phraya-Mekong Economic Cooperation Strategy) One Way Free Trade Policy or Duty Free Import, Thailand has reaffirmed its commitment to purchase a number of Cambodian agricultural products, including soybeans, corn, castor beans, potatoes, cashew nuts, eucalyptus, and peanuts. Other ACMECS initiatives include, a feasibility study on setting up a wholesale / export market in Cambodia and a feasibility study on the establishment of special economic zones in Koh Kong, Poipet and Pailin.

2.2.2 Lao PDR

With the accession to ASEAN, Lao PDR joined AFTA (ASEAN Free Trade Agreement) and AFAS (ASEAN Framework Agreement on Services) in 1997 and 1998 respectively. Furthermore, Lao PDR has committed to deepening and broadening of economic integration through the formation process of the ASEAN Economic Community (AEC) by 2015. The import tariffs are phasing-out with 0 to 5% in 2008 in order to comply with regional commitment under AFTA/Common Effective Preferential Tariff (CEPT) scheme. Lao PDR has bilateral trade relations with more than 50 countries around the world, and signed bilateral trade related agreements with 17 countries. Being categorized as a LDC

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country, Laos is granted duty free and quota free market access by 48 countries such as EU, Australia, Japan, Republic of Korea, China and India.

Figure 2.3 Laos’ Main Trading Partner

Source: IMF International Financial Statistics Yearbook 2000, Foreign Trade Policy Department, MOIC, Laos Thailand is the traditional trading partners of Laos due to its geographical proximity and close cultural ties, followed by Vietnam, EU and China. Laos' exports are primarily comprised of timber and furniture, followed by garments, electricity, manufactured products, coffee etc. Imports items comprise of consumer goods, capital goods, and industrial components.

2.2.3 Myanmar

Myanmar has been actively participating in the negotiation and implementation of free trade agreements. All agreements under ASEAN Plus Free Trade Agreements (FTAs), namely the ASEAN-China FTA (ACFTA), ASEAN-Korea FTA (AKFTA), ASEAN-Japan Comprehensive Economic Partnership (AJCEP), ASEAN-Australia-New Zealand FTA (AANZFTA) and Trade in Goods (TIG) Agreement under the ASEAN-India FTA were ratified by all Parties to the Agreements.

Table 2.6 FTAs with Dialogue Partners

FTAs Status Coverage AFTA 1993 (entry) Goods, Services, Investment ASEAN+ China 2005 (entry) Goods, Services, Investment ASEAN+ Korea 2007 (entry) Goods, Services, Investment ASEAN+ Japan 2008 (entry) Goods (Services & Investment

in bilateral EPAs) ASEAN+ India 2010 (entry) Goods ASEAN+ Australia & New Zealand

2010 (entry) Goods, Services, Investment, other areas

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BIMST-EC Under negotiation Goods Regional Comprehensive Economic Partnership-RCEP

Under negotiation Goods, Services, Investment

ASEAN+EU Under negotiation Trade & Investment ASEN+ US Initiating Trade & Investment ASEAN+ Canada Initiating Trade & Investment ASEAN+ Russia Initiating Trade & Investment Source: Ministry of Commerce, Myanmar As per the Common Effective Preferential Tariff (CEPT) Scheme for AFTA and Roadmap for ASEAN Integration (RIA), Myanmar committed to reduce all tariff rates of products in the Inclusion List (IL) to 0-5% in 2008. Myanmar has completed the commitments since 2008. All the tariffs in the Inclusion List will be eliminated in 2015 but some tariff lines will be eliminated in 2018 as a special and preferential treatment.

Table 2.7 Utilization of FTAs In US$ million

Types of CO 2009-2010 2010-2011 2011-2012

Copies Value Copies Value Copies Value ATIGA Form-D 2093 100.26 2497 139.69 3082 200.15 ACFTA Form-E 8396 156.60 8740 201.49 7455 136.43 AKFTA Form-AK 1869 46.193 3714 115.33 3839 183.99 AJCEP Form-AJ 31 1.107 28 0.821 107 6.098 AANZFTA Form-AANZ 2 0.004 - - 3 0.203

AIFTA Form-AI 3 0.408 157 4.528 257 8.496 Source: Directorate of Trade (overseas and border trade)

2.2.4 Vietnam

Vietnam joined eight FTAs including six regional agreements between ASEAN countries, ASEAN and China, ASEAN and the Republic of Korea, ASEAN and Japan, ASEAN, Australia and New Zealand, and ASEAN and India, plus two bilateral agreements between Vietnam and Japan and between Vietnam and Chile. Vietnam concluded 8 FTAs and each FTA has its own tariff reduction schedule with different rules of origin and other easy facilitative measures. Despite the fact that the country has been very active in FTAs negotiation and reaching agreements, SMEs role in utilizing the FTAs has been minimal.

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Table 2.8 Top ten exports – import commodities in Vietnam are: Export Products Import Products

Cambodia United States Hong Kong & China EU Canada Vietnam Singapore Thailand China Japan

Rice, rubber, timber, clothing, tobacco and footwear

China Thailand Taiwan Vietnam European Korea Singapore Japan Malaysia Indonesia

Cigarettes, gold, motor vehicles, petroleum products and pharmaceutical products

Source: Ministry of Industry and Trade According to the Women’s Entrepreneurs Council, a division of VCCI, the awareness on importance and utilization of FTAs is relatively low among SMEs and not many workshops or trainings activities have been organized. Also, no significant research has been conducted on FTA or related issues. The figure available is only on the total volume of export under FTAs (see Figure 2.4).

Figure 2.4: Volume of Export under FTAs between 2009 and 2010

Unit: Million US dollars. Source: Ministry of Trade and Industry

Source: Ministry of Industry and Trade, Vietnam

As indicated in the table below, the utilization rate has increased over the years. In 2005, the rate of utilization was only 6.07% but it doubled in 2008 with 12.76%. For the year 2009, this rate slightly dropped at 11.41%.

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Table 2.9: Utilization of FTA Unit: USD million

Year 2003 2004 2005 2006 2007 2008 2009

Form D NA NA 305.7 450.2 733.5 1,305.6 995.9

Utilization rate NA NA 6.07% 7.10% 9.41% 12.76% 11.41% Source: Ministry of Industry and Trade The goods exported to ASEAN do not require CO Form D because of the zero tariff rates in the ASEAN countries. Besides the Form D, Form AJ is used for export to Japan. Specific goods with high utilization rate of Form AJ are given as below:

No Description Export to Japan Form AJ value Utilization rate of Form AJ

1 Precious stone 41,141,298.00 34,999,695.23 85.07%

2 Plastic and Plastic products 193,284,113.00 150,017,947.46 77.62%

3 Fishery 760,725,464.00 534,340,481.43 70.24% 4 Footwear 122,473,697.00 81,540,903.08 66.58%

5 Chemicals and Chemical product 43,714,835.00 22,277,230.29 50.96%

6 Textile and Apparels 954,075,543.00 457,512,255.08 47.95%

7 Confectionary and cereal products 21,283,182.00 9,299,725.35 43.70%

8 Bamboo products and mats 26,227,912.00 10,978,701.87 41.86%

9 Vegetable and Fruits 31,878,215.00 13,106,712.94 41.11% Source: Ministry of Industry and Trade

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Chapter 3: SME and Trade Development

Initiatives

3.1 SME Promotion Initiatives

A number of organizations both in the government and private sector are involved in

promoting SMEs in the CLMV countries. This chapter maps out the key agencies and

their activities related to SME promotion with an aim to identify any SME cluster

development initiatives in these countries.

The key agencies and their roles in SME development are described as below:

Table 3.1 SME Promotion Initiatives

Country Organizations Activities Cambodia

General Department of Industry, MIME

The department introduced a program on policy advocacy and industry awareness on economic benefits of the industrial cluster and provides assistance to SMEs to form industrial cluster With support from JICA conducted survey of BDS providers and diagnosis of SME and business excellence for rice millers. With support from IFC the department will upgrade SME data in 2013. UNIDO in partnership with Ministry for Women affairs will develop strategic Plan on women empowerment (2013).

Ministry of Industry, National Productivity Centre (MIME/NPCC)

NPCC was established in 2006, after Cambodia became a member of APO in 2004. NPCC provides training to SMEs particularly on-the-job training. The centre also works with selected companies on management, productivity and consults companies on issues of HACCP and GMO.

GIZ, UNDP and USAID

Piloted handicraft clusters and Silk clusters in Takeo, Koh Dach Island and in Siem Reap.

Phnom Penh PPSMIA is a membership organization of SMEs and

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Small and Medium Industries Association (PPSMIA)

coordinates with producers and industrialists in production and marketing development; establishes relationship with all relevance institutions in sharing market information, technology and networking; dialogue with all relevance government agencies and coordinating members to get a training, funding or field visit.

Federation of Small & Medium Enterprises in Cambodia (FASMEC)

FASMEC is a membership organization of associations of SMEs and provides the technical support to SMEs in Cambodia through policy dialogue of Government Private Sector Forum (GPSF) and programs on promoting productivity and market access (including organizing trade events).

Cambodia Women Entrepreneur Association (CWEA)

CWEA is a newly formed business association with 30 active women entrepreneurs. The association provides business guidance to its members.

Pailin Province

Provincial Department of Industry

Provincial level organization to promote SMEs by providing business license to SMEs and Inspection of production & product quality of SMEs

Country Organizations Activities

Lao PDR

SMEPDO

SMEPDO implemented 5 projects in the year 2012, namely: 1) Business Development Service Provider Network/

BDS, funded by GIZ and ADB. 2) Start Your Business, coordinated with ILO to help

SMEs access more fund from SME Development Bank from Lao Government.

3) Value Chain, funded by GIZ, TICA, to develop value chain on Lao Coffee, Teak wood and mulberry paper, and to enhance product quality, GMP, KAIZEN, supported by APO

4) SME Diagnostic 5) Business Plan Contest

National Economic Research

NERI in collaboration with JICA is implementing a pilot project on “One District One Product”. NERI has

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Institute (NERI), Ministry of Planning and Investment

implemented SMEs project on Agriculture Value Chain and a study on challenges and negative impact for SMEs.

The Lao National Chamber of Commerce and Industries (LNCCI)

LNCCI collaborates with several organizations to promote SMEs though training, seminars and workshops. Main organizations that LNCCI works with are SMEPDO, GIZ, UNIDO, ILO, UNDP and EU.

Khamoun province, Lao PDR

Department of Industry and Commerce (DOIC), Khammouan Province

DoIC is implementing a project for promoting young entrepreneurs in Hotels, Guest houses, Wood Factory business to prepare for ASEAN 2015. Besides, DOIC with support from ADB implemented a project on capacity building for CCI staff, CCI members, businessmen and processors.

Country Organizations Activities Myanmar

Central Department of SME Service Center

The Central Department of SME service center drafted the SME framework which is expected to be put in force from mid 2013. The centre conducts short training courses for SMEs on different subjects including accounting and finance.

UMFCCI

UMFCCI conducted several training for the SMEs with support from Japanese government. With support from SIDA, UMFCCI organized Training on Production Management, HR management for industrial development and association, production management and quality control. With support from Ministry of Foreign Affairs, Netherland in collaboration with CBI, Netherlands organized EU Market Access requirement awareness training. In collaboration with World Intellectual Property Organization organized workshop on trademark and branding.

Myanmar

With support from Hans Seiden Foundation organizes

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Women Entrepreneurs Association (MWEA)

short course on SME (3 times in this year). With support from Philippines Embassy conducted Training on SME Development and TOT on SME Development with support from Hans Seiden Foundation.

Country Organizations Activities Vietnam

UNIDO, Italian Cooperation & Ministry of Planning & Investment

Initiated a 3 year “SME Cluster Development" project with an aim to upgrade competitiveness and capacity of Vietnamese enterprises though extensive technical assistance programs focused on strengthening SME clusters and industry associations. Supported selected garment and textile industries in HCMC, Hanoi and Hung Yen; footwear & leather industries in HCMC; furniture and wood industries in Binh Duong and HCMC for deploying pilot cluster upgrade interventions.

VCCI and UNIDO

Implemented the Subcontracting and partnership. Exchange in Vietnam– SPX Vietnam (www.spxvietnam.vn) which aims at creating and enhancing the opportunities of Vietnamese enterprises in the supply chain of domestic and foreign enterprises. This programme targets the promotion of industrial manufacturing enterprises and particularly the clusters having great potential for industrial subcontracting including mechanical engineering, industrial rubber and plastic, electricity-electronic, energy and industry service.

Agency for Enterprise Development

3 ongoing projects on (i) SME Cluster development 2010-2013 in collaboration with UNIDO (ii) JICA supporting for public functions for SME development (2012-13) (iii) World Bank support on Inclusive Innovation in SMEs feasibility of this project has been completed and the project will start in 2013.

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3.2 Initiatives to utilize FTA’s

In order to understand the utilization of FTAs, an attempt has been made to identify the agencies involved in trade promotion and free trade agreements to outline the activities directed towards FTA and Trade development. The key agencies and their roles in FTA utilization are described as below:

Table 3.2 FTA Utilization

Country Organizations Activities Cambodia

General Directorate for International Trade, Ministry of Commerce

The Trade Policy is under review based on certain obligations. In this review, emphasis has been made on trade diversification, supply side constraints, value chain capacity building and introduce regulations and deregulations in some sectors in compliance with ASEAN and WTO. The Directorate provided training of trainers (ToT) on basics of export procedure. Trade Research and Training Institute will be set up with support from World Bank.

Cambodia Chamber of Commerce (CCC)

The Chamber provides data on trade and business matching; organize field visits; coordinate with private sector and government on issues related to trade and investment and provides bar code to the firms.

Economic Institute of Cambodia

EIC provides services including developing socio-economic database, conducting policy-oriented research on trade, investment, poverty reduction, private sector development, social justice, economic governance, and other areas, disseminating information and research findings through publications, seminars, consulting, and the media.

Pailin Province

Provincial Department of Commerce

Promote and facilitate trade and investment in the province.

Batambang Province

Provincial Department of Commerce

Promote and facilitate trade and investment in the province

Provincial Chamber of Commerce

Support and help business owners in business development through information exchange and meetings with Thai traders; Assist SMEs to improve their productivity and quality and facilitate their export.

Country Organizations Activities

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Lao PDR Foreign Trade Policy Department

FTPD organized six workshops on importance and implementation of FTAs for both private and public sectors from Vientiane capital and other provinces. FTPD also organized a high level workshop to reinforce the mission of Regional Economic Integration, supported by GIZ and USAID.

ERIT

ERIT’s research focuses on SEZ and SMEs sector, Impacts of SEZ to the SMEs, Barriers of SME in Lao PDR (Export barrier to SMEs) supported by ADB. ERIT conducted research on Trade Development Facilitation and provided trainings on Foreign Trade for enhancing capacity of government staff at least 3 trainings per year. ERIT also conducted a research on Contract farming; Capacity community development; Micro finance; Trade finance – ARTNET.

LNCCI

LNCCI is implementing a project on BCI- Asian Integration Program supported by the World Bank. LNCCI organized seminar on Capital and Stock Market Opportunity in Funding and Investment "Funding in Capital and Stock Market / Condition for Registration in Stock Market". LNCCI collaborates with International Trade Centre (ITC), World Trade Organization (WTO), Lao-Japan Human Resource Development Institute (LJI), National University of Laos (NUOL).

Import-Export Department (IED), Ministry of Industry and Commerce of Lao PDR

IED implemented the Trade portal/website (http://www.laotradeportal.gov.la) to provide information on regulatory requirement for import and export of products in Laos.

Trade and Product Promotion Department (TPPD) ,

TPPD (MoIC) with support of World Bank is implementing a project on Trade Development Facilitation for wood sectors. TPPD also provided training on Handicraft and Packaging to Luang Phrabang and Champasak Provinces, supported by EU

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Ministry of Commerce and Industry (MOIC)

and GIZ. TPPD, MOIC of Laos and Department of Export Promotion, Ministry of Commerce of Thailand co-organized Lao-Thai Trade Fair 2011. TPPD collaborate with many organizations focusing in different area; ILO and UN for Trade cluster, ITC for Marketing, UNIDO for SIS and product safety, Asian Korean Center for packing design for coffee processing.

National Economic Research Institute (NERI), Ministry of Planning and Investment

NERI focuses on AEC-FTA and conducted several researches on Trade issues (how to increase export market to Asian market), namely “the Impact of the Implement of AFTA on Lao Economy”, “Microeconomic Imbalance in Lao PRD”, “the Social Security System in Lao PDR”, “Microfinance and Poverty Reduction: an alternative Development Strategy”, “a Structure and Role of Border Trade in Lao PDR”, “Border Trade between Laos - Thai, funded by Thai Government. Ongoing projects and activities are 1) conducting quarterly consumer sentiment and business tendency survey, 2) NERI, Concern World Wide - capacity building in microfinance research in Lao PDR, 3) NERI, UNIDO - assist the formulation of national export strategy. NERI’s Research partners include United Nations Development Programme (UNDP), Japan International Cooperation Agency (JICA), Concern Worldwide, Sasakawa Peace Foundation (SPF), Asian Development Bank (ADB), World Bank, IDRI, TDRI and ITD Thailand,

Khamoune province, Lao PDR

Khammouan Chamber of Commerce and Industry

Khammouan CCI provides information on border trade and trade and investment and also provides consultations on business solution and resolution to its business members.

Department of Industry and Commerce (DOIC), Khammouan Province

DoIC is preparing for AEC 2015 and transferring knowledge and skills related to trade promotion, import - export and business development to governmental staff and entrepreneurs.

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Country Organizations Activities Myanmar

UMFCCI

Shares knowledge about FTAs to its members through events such as conference, meeting, workshop, media and IT.

Trade Training Institute

Conducted workshop on Enhancing Myanmar’s Participation in the ASEAN Economic Community to increase awareness of domestic business owners towards AEC and AFTA. Organizes on regular basis one Basic International Trade Course (6 module-export/import operation, shipping documentation, cargo and containerization, Banking, Marketing, custom clearance, duration 4 months). Conducts advanced international trade course (6 module-Macro economics, trade and investment, international business management, business ethics, risk management, duration- 4 months. Diploma programe in international trade course will be started from 2013

Country Organizations Activities Vietnam

Vietnam Trade promotion Agency

Joint program by mobilizing funds from different UN agencies. To promote Green trade and production for value chain development –ITC to be responsible for marketing, Clean production- UNIDO, Social responsibility and labour standards and business entrepreneurship -ILO and UNCTAD on entrepreneurship development, FAO for raw materials and policy framework to encourage local market for raw material in handicraft sector through establishment of craft villages adopting a value chain approach. This project is extended up to 2013 and is being implemented in four provinces in North Vietnam. CBI, Netherlands conducted training on Export marketing for exporters. Another project with SICO is in formulation stage focusing on increasing competitiveness of SME exporters in provinces in Northern Vietnam- Hai phon provinces, Central Vietnam- Danang, SW Vietnam partnering with provincial Trade promotion Centres. The activities include-improving capacities of TPOs, target SME exporters prepare export development plan.

Women’s Entrepreneurs Council

WEC holds regular workshops and seminars in HCMC, Hanoi, Quang Binh, Binh Duong, Binh Thuan and Ca Mau to provide information related to FTA to entrepreneurs.

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3.3 Constraints for SMEs to Export The key constraints for SMEs in the CLMVs to participate in export business are described below:

High competition from foreign products imported from Vietnam, Thailand, China and Malaysia and Korea Product certification is not well recognized among the international market or buyers. Limited information about export formalities (e.g. steps for export).

Cambodia

Very few Cambodian manufacturing SMEs are engaged in export business.

Most of the country’s primary goods such as raw cashew nuts and rice paddy are sold to neighboring countries and then imported back to Cambodia as finished products.

Laos

Limited information on export formalities (e.g. steps for export). Inadequate knowledge on business incentives and market information among SMEs Poor business management skill, lack of proper accounting skill, limited skills of product development Poor logistics and high cost of transportation High competition from Chinese and Vietnamese markets The market demand in Lao PDR is small, insufficient production and poor quality. Local consumers do not trust local brands and prefer imported products. Low level of technology and inadequate technicians in both public and private sector to improve quality of local products, to innovate and diversify products in response to the market demands.

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No clear definition of SME, thus, it is difficult to classify SMEs. Policies and law are still in process of development. Limited sources of fund for the SMEs as well as credit facilities Limited access to finance, modern technology, and limited application of ICT in SME operation, market access, limited energy and infrastructure Lack of awareness of supply chain linkages High competition of products from China and Thailand

Vietnam

Myanmar

Limited access to finance Lack of information on foreign markets and international trade issues and limited ability to find information about alternative suppliers and buyers Lack of working capital, unclear Government regulations, minimal Government support and the application of value-added tax (VAT) to export products Investment in technology innovation is at a low level compared to the development demand. Lack of knowledge about international quality standards Low-quality of products, limited ability to meet demands and tastes of foreign markets. Limited value adds due to strong import dependency for raw materials and intermediate inputs. Limited production capacity to meet large contracts of foreign markets.

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Chapter 4: Donor Mapping on SME and Trade

Development In the CLMV countries, donors have both medium to long- term plans for cooperation and are often integrated in projects or programs for development of industry, agriculture, infrastructure, poverty reduction and support policy and institutional development. SME development is related directly or indirectly in these programs or projects components. 4.1 Cambodia UNDP The Trade SWAP consists of three sub-programmes or “pillars”, supported by

combined teams of government officials, private sector representatives and development partners. Pillar 1 is cross-cutting reform of laws and institutions to promote trade development. Pillar 2 is development of export supply capacity. Pillar 3 is development of human and institutional capacity for managing the Trade SWAp. Diagnostic Trade Integration Strategy (DTIS 2007), which forms the heart of the Trade SWAp. The strategy identifies 19 products and services with export potential, including garments, footwear, rice, cassava, rubber, fish, cashew nuts, silk, soybeans, corn, wood products, light manufacturing, and tourism.

World Bank Cambodia Agribusiness Access to Finance Project : the main activities include-

Strengthen capacity to supply and promote products and services for export, as identified in the 2007 Trade Integration Strategy, Support development of capacity for managing Cambodia’s trade development policy, the Sector Wide Approach to Trade (the Trade SWAp) and establish a Value Chain Analysis Unit within the Trade Promotion Department of the MoC and work with local chambers of commerce to facilitate public-private dialogues between the Government and businesses to determine constraints faced in selected geographical areas.

IFC Improving the investment climate (IC): Current projects include measuring key

business indicators across provinces in order to identify areas for business reform, advising the government on the feasibility of installing a National Arbitration Center, promoting standardized Special Economic Zones and supporting the drafting of a new tourism law. Increasing private sector access to financial services (ATF): Include supporting the Ministry of Commerce in preparing a training program for banks, MFIs, and lawyers on the Secured Transactions Law, developing new financial services,

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such as electronic banking, and advising on the development of a more comprehensive credit bureau. Improving competitiveness and productivity of firms (Corporate Advice): To enhance capacities in agri-industry associations to help members increase crop yield, efficiency, and productivity and promoting standards and certification for improved crop quality and access to markets, and continue to investigate cleaner technologies and management systems for waste reduction and energy efficiency among agri-processors. Improving environmental and social sustainability in private firms (ESS): projects support the garment industry by helping establish Better Factories Cambodia as an independent institution providing labor standards monitoring and training services, improving dialogue with international garment buyers through the establishment of an international buyers’ forum, providing training on improving working conditions and employee-management relations and researching the potential of rice husk for electricity generation or other energy purposes.

SNV On SME promotion, SNV in Cambodia is implementing projects in renewable

energy sector and agriculture value chain. National Bio-digester Programme The objective of the extended phase of the NBP is the establishment of a permanent domestic biodigesters sector on a commercial, market oriented basis for the dissemination of biodigesters as an indigenous, sustainable energy source in 12 provinces of Cambodia. Waste to Energy for the Rice Milling Sector The project focuses to switch from conventional (expensive, fossil fuel generated) energy to renewable Waste to Energy (WtE) applications through upgraded rice husks gasification systems and reduce the processing cost for millers. Fruits and Vegetables Value Chain Development The overall goal of the programme is to improve income from fresh (safe) vegetables cultivation for domestic (and where potential, export) market supply for producer groups in Svay Rieng and Prey Veng Province by 2013. Inclusive Business in Mango This pilot project was started in 2011. It followed an initial phasein early 2011 to widen the scope of the existing vegetable value chain.

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4.2 Lao PDR GTZ HRDME Programme

The Lao-German HRDME is multi-level and multi-stakeholder programme within the focal area of the German Technical Cooperation on Sustainable Economic Development. It began in 2005 and is currently in the second phase (2007 to 2013) of implementation. It consists of two components: (a) private sector development and (b) labor market oriented vocational education and training. The programme support to SMEs includes: establishment of SMEPDO, development of SME strategy (jointly with UNIDO and ADB) and capability building of SMEPDO. Currently GTZ HRDME is involved directly or indirectly in 56 out of the 140 activities lists in the SME Strategy. It supports the implementation of specific measures in four of the six policy areas. These are: Policy 1: Expanding strategy in Enabling Environment on Business Policy 2: Enhancing competitiveness Policy 3: Expanding marketing (in domestic market and in abroad) Policy 4: Enhance attitude and characteristic of Entrepreneurship

European (EU) European Union (EU) cooperated (2007 to 2010) with SMEPDO to focus on

increasing the number of SMEs, their profitability and growth rates. The cooperation allowed both sides to work on the following main activities: Enhanced Legal and regulatory Environment Enhanced Investment Procedures and Trade policies Enhanced SME Access to Finance Institutional strengthening and Capacity Building Support to SMEPDO EU supported several workshops, seminars and training events under this cooperation. Some of these are: Workshops and seminars held in the three pilot provinces of Luang Prabang,

Svannakhet, and Champasack. Activities aimed at deepening the relations with the SME promotion desks in the three provincial offices of the Department of industry and Commerce and the local offices of the Lao National Chamber of Commerce and industry.

SMEPDO’s Thalat workshop (with support of GTZ) to disseminate, dialogue and discuss the National SME Development Strategy approved by the Prime Minister in September 2008 with officials from 17 provinces of the Department of Commerce and industry.

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Conference between the Minister of Industry and Commerce, SMEPDO’s Director General and other key Government agencies to discuss SMEPDO’s future direction in terms of tasks, organization development, and funding.

Four workshops were co-organized by SMEPDO with the World Bank and the Asian productivity Organization on various topics including quality control, productivity improvements and the roles of SMEPDO.

One seminar for counterpart delegation of officials and private sector representatives from Thailand to discuss joint activities to promote SMEs. The project was completed in 2010

ADB The Asian Development Bank (ADB) provides an advisory technical assistance

(TA) on the action plan for the implementation of the Private Sector and SME Development Program Cluster. The TA grant aims at three main issues. These are: Support the Government via the Ministry of Industry and Commerce

(MOIC), Ministry of Planning and Investment (MPI) and Ministry of Finance (MOF) in implementing and monitoring the impact of key policy reforms;

Broaden and deepen SME, investment and trade policy reforms agenda under the program cluster; and

Assist in strengthening the capacity among the executing and implementing agencies to formulate policy for the sector, and participate effectively in the World Trade Organization (WTO)

In 2008, ADB provided 5 million dollars to Lao government to carry out SME promotion and development activities in SMEPDO. The assistance included a study to evaluate procedures, business regulation and promote transparency. It assisted SMEPDO in updating its website used primarily in disseminating regulation, SME’s statistic, business registration, regulation, license and other business procedures in Lao PDR.

IFC The International Finance Corporation (IFC) started operating in Laos in 1997

via the then Mekong Private Development Facility (MPDF). MPDF performed the preparatory activities for the IFC. Now on its third phase (e.g., each phase has 5-year duration), provides the following main services: Investments: IFC offers an array of financial products and services to its

clients and continues to develop new financial tools that enable firms to manage risk and broaden their access to foreign and domestic capital markets.

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Advisory Services: IFC offers a range of advisory services in support of private sector development in developing countries.

Since its establishment, IFC has continued to relate, work with and collaborate with SMEPDO, with whom it shares it knowledge and best practices. In 2007, IFC directly implemented with SMEPDO a one and half year activity to establish a negative list which supports the Enterprise Law.

ILO The International Labor organizations (ILO) project is now on its fourth phase

since it began in 2004. It works directly with both SMEPDO and MoIC since its third phase (2007 to 2008) and continued till the fourth (2008 to 2011) phase. Geared to helping businesswomen projects and promoting gender equality between women and men, ILO focuses on the following main themes: Creating expertise among female and male entrepreneurs in seeking market

distribution (training workshops). Capability building for business plan to improve access to capital and expand

their businesses. Improve understanding for service expertise and awareness on village

development. ILO’s fourth phase is supporting low income woman in creating employment opportunities through specific enterprise development interventions for women. There are many activities in the project that relate with SMEPDO. These are: Environment facilities improvement for women’s entrepreneurship Capacity building enterprise development services for women entrepreneurs Improve income generation, productivity, competitiveness for women The project has been completed

World Bank

Trade Development Facility Project aims to support the establishment of the National Integrated Framework Governance Structure (NIFGS) and implement NIFGS's initial activities to address the key institutional and operational bottlenecks and capacity gaps that hinder cross-border trade. The project include: (i) update the detailed financing plan by sub-components to fully utilize Multi Donor Trust Fund (MDTF) re-sources in light of (a) contributions from a third donor to the MDTF, and (b) realization of exchange rate discounts and earned investment income; (ii) include the updated results matrix and project indicators; (iii) add a new category of disbursement and reallocation of grant funds to allow for small renovations of the project unit offices; and (iv) extend the closing date of the Recipient Executed Trust Fund (RETF) from February 28, 2012 to March 31, 2013.

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4.3 Myanmar JICA Financial support was provided by JICA to UMFCCI to establish Japan-

Myanmar Center. The purpose of the centre is to provide capacity building programmes for entrepreneurs. The project duration will be of 3 years with funding support of 1 million for initial establishment and 2.5 million for each year. A tripartite agreement among JICA, Ministry of Commerce and UMFCCI has been recently concluded. ADB : Support for Trade Policy Development Trade Facilitation support for ASEABN economic community Blueprint

implementation Support for Improving Business Climate.

4.4 Vietnam UN Industrial Development organization (UNIDO) UNIDO is one of the largest donors of Viet Nam for SME development. UNIDO

gives priority to the following fields to support SME development: Development of industry in rural areas to create jobs and generate income,

reducing poverty; Sustainable industrial development, using environment- friendly technology

and improving efficient use of energy;

DANIDA (Danish International Development Agency) The SME development program for 2011-2013 with the target of “improving

competitiveness of non-state businesses in export- oriented business sectors by focusing on growth and employment”. The program promotes continued economic growth of Vietnam which depends largely on the private sector.

ADB The SME development program has provided a favorable environment for SME

development. Activities in progress include assistance in terms of legal framework, regulatory co-ordination, reforms of business registration procedures, and licensing procedures, and improvement of accessibility to financial resources and land uses.

IFC The program on supporting economic development of the private sectors focus

on improving business environment via Business Forums to encourage dialogue between the public and private sector and providing advisory services for SME.

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Regarding investment activities, IFC provides support to the private sector via direct investment into financial institutions and enterprises. In addition to programs on investment environment and financial accessibility, IFC has initiated various new projects in Sustainable environment and society field.

Japan International Cooperation Agency (JICA) JICA has organized a number of projects on supporting SME development in

Viet Nam. JICA is currently speeding up programs on enhancing capacity of SME operating in supporting industries in Viet Nam for the period 2010-2013.

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Chapter 5: Identified Organizations for

Institutional Partnership

5.2 Institutional Partners for Implementing Component C & D

During the one year experience of implementing the activities under component C and D of the project, it was learned that it’s important to identify key organizations as focal point in the project countries. The role of the key organizations would be to coordinate all activities specific to their organizational mandate, assist in target participant recruitment and follow up action plan implementation and other assigned roles. For each of the component under the project: SME cluster Development and FTA utilization, the following organizations have been identified as the focal point in the CLMV countries.

5.2.1 Component C: SME Cluster Development & Export Consortia

Cambodia

Contact person Modalities

H.E. Meng Sakthera Director General General Department of Industry Ministry of Industry, Mines and Energy 45, Preah Norodom Boulevard, Khan Daun Penh, Phnom Penh Email: meng [email protected] Phone: +855 – 012 919 013 CC: Ms. Navinn Lay Deputy Director General Tel: +85 5 12845567/ Mobile: +85 5 12845567/ Fax: +85 5 428263 Email: [email protected]

Enter MoU outlining roles and responsibilties and determine extent of engagemnent in terms of time and resources

Laos

Contact person Modalities Mr. Somdy Inmyxai Director General Small and Medium Enterprises Promotion and Development Office (SMEPDO), Ministry of Commerce and Industry (MOIC) SME Support Division Address: Nongbone Road, Ban Fai, Xaysetth District, Vientiane Capital, Lao PDR. PO BOX 474 Tel: +856-21-414065, Fax: +856-21-263-590 Mobile: +856-20-55513193 Email: [email protected]

Enter MoU outlining roles and responsibilties and determine extent of engagemnent in terms of time and resources.

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Myanmar


Mr. Win Aung President The Republic of Union of Myanmar Federation of Chamber of Commerce and Industry No. 29, Min Ye Kyaw Swar Road, Lanmadaw Township, Yangon, Myanmar Tel: +95 1 214341~2, Fax: +95 1 214484 Email: [email protected]; [email protected]


Vietnam


Ms Pham Thi Thu Hang PhD Secretary General Vietnam Chamber of Commerce and Industry Address: 9 Dao Duy Anh, Dong Da, Hanoi, Vietnam Tel: 84-4-35742016 Fax: 04 35742016 Email: [email protected] [email protected]


5.2.2 Component D: FTA Utilization by SMEs

Cambodia


H.E Sok Sopheak Director General General Directorate for International Trade Ministry of Commerce Lot 19-61, MOC Road (113B Road), Phum Teuk Thla, Sangkat Teuk Thla, Khan Sen Sok, Phnom Penh, Cambodia HP: 855 12 992 035 Tel/Fax: 855 23 866 317 Emal: [email protected] CC: Mr. Thol Nara Chief of Sub-Regional Cooperation Bureau of Multilateral Trade Department Tel: +85 5 23 866 389 Mobile: +85 5 12 928 287 Fax: +85 5 23 866 389 Email: [email protected]


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Laos


Mr. Bounsom Phommavihane Director General Foreign Trade Policy Department Ministry of Industry and Commerce Phonxay Road, Xaysettha District PO Box 4107, Vientiane Capital, Lao PDR Tel: +856 21-450066 Fax: +856 21-450066 Email: [email protected]

Enter MoU outlining roles and responsibilties and determine extent of engagemnent in terms of time and resources. Mention ERIT for localising the ToT and necessary follow up action on Action Plan.

Myanmar


Mr. Kyaw Htoo Director General Directorate of Trade Ministry of Commerce Office Bldg No. 3, Nay Pyi Taw, Myanmar Off: 95-67-408009,408244 HP: 959-8303220,5011946 Email: [email protected]/[email protected]

Enter MoU outlining roles and responsibilties and determine extent of engagemnent in terms of time and resources Mention Trade Training Institute for localising the ToT and necessary follow up action on Action Plan.

Vietnam Contact person Modalities

Mr. Luong Hoang Thai Director Multilateral Trade Policy Department Ministry of Industry and Trade 54 Hai Ba Trung - Hanoi Tel: (04) 22 205417-19 Fax: +84 4 22202525 Email: [email protected] Email: [email protected] CC: [email protected]; [email protected] CC: [email protected]; [email protected]

Enter MoU outlining roles and responsibilties and determine extent of engagemnent in terms of time and resources. Mention Institute for Trade for localising the ToT and necessary follow up action on Action Plan.

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Chapter 6: Capacity Assessment of

Organization- Gaps and Capacity

Constraints The study assessed the organization structures in order to identify the roles and functions of the officials to propose specific training packages for target groups. The study focused both at national level organizations and provincial level organization. The discussions below present the job levels and the existing roles and types of capacity building activities attended by the officials. This analysis is conducted to understand the existing capacities in order to determine gaps and priorities for devising capacity development packages for different target groups involved in SME development and Trade promotion.

6.1 SME development

6.1.1 Cambodia

SME development General Dept. of Industry, Ministry of Industry, Mines and Energy Levels Position Key Role in

SME development

Capacity assessment

Management & decision makers

1 Director General 3 Deputy Directors General

Drafting strategies, policy plans, Coordinate with donors

Officials of this level are exposed to different types of seminars, forums particularly on SME Policy. Capacity development needs for this category includes– Provision of SME incentives, Policy on SME development, Exposure trips to SME clusters and experience sharing on SME cluster promotion, Sharing of SME cluster research results through forums and seminars.

Mid level functionaries

1 Director 2 Deputy Directors 5 Chiefs of Office 10 Vice Chiefs of Office

Plan, prioritize, implement and evaluate the sector of small industry and handicrafts;

This group has been trained on the technical aspects of SME cluster development, SME development and support services. The training -needs includes preparations of SMEs for ASEAN, SME cluster diagnosis, planning and English language Training.

Cambodia Women Entrepreneurs Association Levels Position Key Role SME

development Capacity assessment

Management President, Advocacy, This level is trained on Business Management

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& decision makers

Vice President, General Secretary, Treasurer

membership services, training

and Women Empowerment Competitiveness and Creativity. The capacity development needs include accounting, trade fair participation, strategic planning and leadership.


Members and Non-Members

These level is trained on Business Management and Women Empowerment Competitiveness and Creativity. The training needs include membership association management.

In Cambodia, the roles and responsibilities of the functionaries of SME promotion agencies in the Government at the management level mostly focus on drafting strategies, policy plans; coordination with donors and the mid level functionaries are tasked with implementation and evaluation of activities in the small industry and handicrafts sector. The personnel’s are trained on wide ranging subjects including cluster development and Export Consortia Formation, Economic Globalization in China, ASEAN Energy and Business Plan, Access to finance among other topics. It is noteworthy to mention that, the General Dept. of Industry has initiated SME cluster development training programme in Salt cluster in Kampot by localizing the training materials of the SME cluster development organized by Mekong Institute. A number of issues have been identified with regard to application of acquired knowledge and skills from the training programs. It was reported that most of the trainings abroad are advanced in nature and are not in consistent with the requirements of day to day functions of the department. However, the trainings provided within projects implemented by the department and funded by donors are relevant since these are built-in programmes to enhance capabilities of the implementing agencies. Trade Trade Promotion Department Levels Position Key Role in

Trade development

Capacity assessment


DG (1) Strategy, Policy development

This group normally attends exhibitions, training, workshop and forums related to trade promotion. The capacity building needs include exposure to emerging products, new technology on packaging, testing etc.

Mid level Director (1), Deputy Directors (4)

Product development, trade promotion, exhibition, market management and

This group is trained in management, trade promotion, product development, FTA benefits and international trade. The capacity needs for this group includes

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trade intelligence training on development of products and Product market Intelligence.

Junior level Sr. Staff , Jr. Staff

Assist and coordination, documentation

This group is trained in trade promotion, product development, FTA benefits and international trade. Capacity needs of this group include report writing and training on trade promotion activities.

General Directorate for International Trade Levels Position Key Role in

Trade development

Capacity assessment


1 Director General 4 Deputy DG

Regulate the policy in compliance with WTO

This group attends high level meetings such as ASEAN Meeting, FTA, and Trade negotiation. Trade dialogue matters are organized by concerned governments. The capacity needs of this group are mostly in form of information sharing with countries on trade related matters.

Mid level 6 Directors of Dept: Multi-lateral Trade (6 offices) Bilateral Trade, Trade Promotion GSP International Trade Cooperation legal Compliance

Documentation of capacity building of provincial department of commerce (job description) and then organize the workshop Implementation coordination, management of project activities supported by Work with World Bank, UNIDO, DANIDA, etc

This group is trained on trade negotiation skills. Capacity building needs includes communication skills, trade policy development, trade negotiation and FTA and Product market Intelligence.

Provincial Department of Commerce Levels Position Key Role in

Trade development

Capacity assessment


Director and Deputy Director

Policies and others legislation of the government, updating information, and transferring

This group is trained on good leadership, Trademark Law, GI Registration, Business English besides export procedure and besides Law on Competition. The capacity needs include:

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knowledge and skills about trade promotion and business development to entrepreneurs or governmental staffs.

Law of Int’l Trade for integration into 2015 AEC, Export promotion and how to seek information of market, Trade partnership, Organizing Trade Fair and Product market Intelligence.

Mid level Chief and Vice Chief of Office

Assist the top level in the above

This group also attended similar training as above and the requirements are considered as above.

Junior level Staff/Official

Office documentation and secretarial assistance

This group is trained in Business English however its observed to be low level due to lack of practice or opportunity to utilize the skill. They are also trained on Trade and Business, export Procedure and ITC Trade Analysis Tool. The training needs include modular approach on training with work based assignments on subjects like trade events and Product market intelligence.

In Cambodia, the roles and responsibilities of the top level functionaries in the trade promotion agencies mostly focus on Strategy and Policy development. The provincial authorities are tasked with implementation of the programmes and policies under the national action plan. The top level executives normally attend exhibitions, training, workshop and forum and other events on ASEAN and trade negotiation. Mid level functionaries by nature of their roles and functions, attends a wide range of training mostly in trade promotion, product development besides specific training on trade negotiation. It was reported that most of the trainings offered does not have direct relation to the existing scope of job functions and responsibilities. It was opined that, it is necessary to revise the job descriptions of the officials in line with changing nature of job requirements more specifically to conform to WTO and ASEAN. With regard to FTA utilization by SMEs, the discussion with key informants revealed that SMEs’ capabilities in taking advantages offered by FTAs are relatively weak and the ability of Governments in implementing incentives in relation to technology transfer and R&D remains limited. Under those constraints, it is important to devise ways and means to make effective utilization of FTAs by the SMEs.

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6.1.2 Lao PDR

SME development SMEDPO Levels Position Key Role in SME



DG-(1) DDG (6)

General supervision, national policy making , monitoring, coordination with relevant agencies to implement SME policy, capacity building to local/private sector by organizing seminars ToT

This group normally attends meetings of Asia productivity Organization (APO) and conferences and SME working group meeting on best practices held every six months, heads of SME agencies in ASEAN member countries besides other events on SME. This group is well trained on SME promotion, hence capacity building needs as proposed includes study visits to best practices in SME cluster.


Heads of Division (Director – 6) Deputy Director -4

Supervision of programmes and activities under each division

This group is trained on productivity practitioner (Malaysia and Philippines), TOT for SME support (Japan). This group requires SME Cluster development training and support services to SMEs.

Junior level Technical staff

To assist the divisions, facilitators

This group attends all kinds of training

related to SME development.

This group requires SME Cluster

development training and support

services to SMEs.

Department of Industry and Commerce (DOIC), Khammouan Province Levels Position Key Role in SME

and Trade development

Capacity assessment

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Director, Deputy Director

This group attends workshop on

ASEAN, AEC, WTO, Business

Management, and Import – Export.

One of the priorities of capacity

building needs for Khammouan CCI

and official’s staffs is information

management (Product market

Intelligence) and marketing.


Technical staff

This group is trained in business

management, value chain development

for entrepreneurship.

The capacity building needs includes

IT particularly Product market

Intelligence and administrative skills

for this mid level staff to effectively

apply them in their routine jobs.

In Laos, SMEPDO is the leading organization at the national level with the tasks to develop policies for SME development and promotion. In line with its mandate, SMEPDO organizes its activities into technical- divisions and local-based representative offices based on needs of projects and programmes. As per the level, different types of training are provided to the staff from time to time. During the discussion, it was opined that focus of training should be project based allowing the participant to apply the skill as work based assignment so that the learning could be shared with the co-workers. Additionally, it was felt that opportunity to apply the training skill is limited since most of the trainings are not tailored to needs of the organization capacity requirements. Language is identified to be one of the barriers for the staff to take training abroad. It was suggested to focus on ToT module to train local pool of trainers.

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Trade The Lao National Chamber of Commerce and Industries (LNCCI) Levels Position Key Roles in

Trade development

Capacity assessment


President Board of Members (30)

Policy making, Advocacy to government

The management attends board meeting, forum with Lao Business Forum (LBF), ILO, Provincial Public Private Dialogue (PPPD) – WTO, and also participates in business matching. The capacity needs of this group are on trade and investment opportunities and study visits to SME clusters and best practices, FTA utilization by SMEs.


Secretary (3) Head of departments (5) dept- Finance, Admin, Trade & investment promotion, trade fair, CO, membership

Supervise day to day activities, report to President

This group is well trained in Human resource, Marketing, WTO, Trade and Investment, Cluster and Value Chain. The capacity needs of this group are on Training on SME cluster and study visits to SME clusters and best practices. This group is also recommended for ToT on FTA and Product market Intelligence.

Junior level Assistants under each division

documentation, facilitation,

The capacity needs of this group are note taking and language skills.

Foreign Trade Policy Department (FTPD) Levels Position Key Role in

Trade development

Capacity assessment


DG , DDG Policy development

This group normally participates in training program such as trade negotiation, WTO and other events related to trade promotion. The capacity needs identified for this level includes information about AEC and WTO. Also impact of Laos to prepare for Asian integration 2015 on how to adjust policy if the tariff becomes 0%. In addition, trade negotiation skill program is also recommended.

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Director of Divisions, Dy Director

Implementation of programmes, M & E, trade negotiations, organize workshop, seminars

This group attends meetings on Sector summary on Asian dissemination workshop 3-4 time / year, workshop on Agriculture, FTA transportation tariff, Asian – China FTA. The capacity needs identified for this level is similar to top level and includes information about AEC and WTO. Also impact of Laos to prepare for Asian integration 2015 on how to adjust policy if tariff become 0%. In addition, trade negotiation skill program is also recommended.

Junior level Technical and non technical staff

Translation, prepare for meetings, documents

This group is trained on negotiation skills, IPR in Lao – Singapore and different trade-related issues at the universities in Thailand, Vietnam, and Geneva. They also had opportunity to attend study tour in Vietnam and Malaysia on Asian Economic Sector. For this level the trainings as proposed above are recommended besides training on Product market intelligence to explore diversified markets.

Import-Export Department (IED), Ministry of Industry and Commerce Levels Position Key Role in

trade development

Capacity assessment


DG (1) DDG (3)

Policy development

This level of officials joined the

signing of WTO in Geneva. The

management attended study tour and

a 3- day business forum in

Singapore, participated a 3-week

study visit on trade and investment in

Beijing, China, in April 2012. Year

2009. This level is well exposed in

export and import procedures and

promotion.

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DG (1) DDG (3)

Policy development

Recommended training programs for

top level are international trade for

specific export, policy maker - how

to analyze policy of import – export,

training on province border trade

regulation. Moreover, study tour on

border trade between Laos, Vietnam,

Thailand and Myanmar would help

to increase understanding on bilateral

border trade.


Director- (5) Dy Director (7)

Implementation of programmes, M & E, trade negotiations, organize workshop, seminars

This group is trained in TOT on trade

facilitation in Thailand and stock

market in Korea.

The recommended training is on

FTA utilization, data base

particularly Product market

intelligence.

Junior level Technical staff-(30)

Translation, prepare for meetings, documents

This group is trained in trade portal

development, Rules of Origin, Trade

facilitation.

The recommended training for this

group is Product market intelligence.

Trade and Product Promotion Department, MOIC Levels Position Key Role in trade



DG (1) DDG (2)

Drafting strategies, policy plans, master plans

This group of officials attended a

numbers of exhibitions, training,

workshop and forum e.g. Asian

Trade Promotion Forum in India-

organized by ATPF.

The recommended capacity

information sharing on market

intelligence, trade exhibitions and

study visits.

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Head of division (4) Deputy of Division (5)

Conduct studies , promote marketing, develop products,

This group is well exposed to

different exhibitions and preparations

of trade events abroad.


development is on product market

intelligence and information sharing.

Junior level Technical officer (35)

Coordinate with international agencies to facilitate entrepreneurs on trade promotion

This group is trained in exhibition,

packaging and product development.


development is on product market

intelligence.

Economic Research Institute for Trade (ERIT) Levels Position Key Role in

trade development

Capacity assessment


DG (1) DDG (3)

Supervise all the 3 divisions Training, research and commerce college, involve in planning and capacity development

This group is trained on development

strategy and planning, trade capacity

building and project evaluation.

The recommended capacity development is

on research and policy evaluation on SME

and Trade.


Division Head (4)

Conduct research, analyze of trade and economic issues, Conduct training on trade

This group is trained on SME development.

The recommended capacity development is

on research and policy evaluation on SME

and Trade.

Junior level Technical staff

Conduct research, analyze of trade and economic issues, Conduct training on trade

This group is trained on WTO in Laos,

contract farming, trade and economic

development. The recommended capacity

development is on research and policy

evaluation on SME and Trade.

Khammouan Chamber of Commerce and Industry

58

Levels Position Key Role in trade development

Capacity assessment

Top level Director, Deputy Director

The management is trained on procurement,

IP for logo and origin of product,

integration of AEC, cooperation on tourism

promotion and development linkage

between Asian – Europe.The recommended

capacity development is on product market

intelligence and information sharing.

The roles of functionaries of Trade Promotion Agencies and types of training attended by different levels of functionaries are distinctly different. The top level management is engaged mostly on policy level issues, e.g., forums, seminar and dialogues; whereas the mid level functionaries attends skill improvement, awareness, subject specific topics and training of trainers courses. The top management level of private sector body like LNCCI is mostly engaged in activities and forum on policy advocacy forums like Lao Business Forum (LBF). The mid level functionaries attend trainings on wide range of topics including WTO, trade negotiations, AEC integration, trade fair and participation in trade exhibitions. It is noticed that there has been no specific training on FTAs or any training directed towards utilization of FTAs by SMEs. Though a range of trainings either on SME development or Trade development was attended by the practitioners, it was reported that the scope for applying the skills has been significantly low particularly among the middle level functionaries. The trainings in most cases do not reflect the roles and responsibilities of the functionaries; this is more common in case of mid and junior level functionaries. Another, hurdle in the acquisition of skill and knowledge in trainings abroad is due to low skill level which is not at par with participants from other participating countries in addition to low English language capabilities mostly among the junior level functionaries.

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6.1.3 Myanmar

SME development Ministry of Industry (Central Department of SME) Levels Position Key Role in SME



1-Director 3-Deputy Director

Planning Prepare draft SME Policy Resource persons in trainings and seminars

This group is trained on SME development, logistics and supply chain. This group attends events such as ASEAN SME Working group meeting and ASEAN SME Working group meeting. The training needs include provision of SME incentives, policy on SME development, exposure trips to SME clusters and experience sharing on SME cluster promotion, cluster research through forums and seminars.


12 Assistant Directors

Credit grantee data base development (collect SME information)

This group is trained on SME Development. The recommended training for this category includes SME cluster development and export consortia formation and support services for SMEs.

UMFCCI Levels Position Key Role in SME

and Trade development

Capacity assessment


1-President, -7-Vice-president, 1-Secretary General, 6-Joint Secretary General, 1-Treasurer, 1-Auditor

Policy making, Advocacy to government

This group attends Summit, Seminar, Forum, conference, training. Recommended capacity development for this group includes exposure trips to SME clusters and experience sharing on SME cluster promotion, Cluster research through forums and seminars.

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50-Central Executive committee members 75-Executive committee members

Voice of various business sector Voice of state and divisions

This group is trained on respective

sector (local trainings and

international trainings).

Recommended capacity

development for this group

includes training on SME cluster

promotion.

MWEA Levels Position Key Role in SME



1-president 2-Vice president 1-secretary 5-committees

Decision making on all activities Advice to government Make a relationship with other organization

This group is trained on SME Development, Business Development for border trade, Consumer protection training, Entrepreneurship training Recommended capacity development for this group includes exposure trips to SME clusters and experience sharing on SME cluster promotion, Cluster research through forums and seminars.


Working group-45 persons

Work for different areas like education, exhibition, ethnic group

Trained on SME cluster Entrepreneurship, Women entrepreneurship. Recommended capacity development for this group includes training on SME cluster promotion.

In Myanmar, it is observed that different types of training are attended by functionaries at both top level and mid level. Due to the nature of jobs related mostly to Planning and SME Policy development, the top level executives attend events like working group meeting for preparation under the ASEAN framework, forums and summits which are mostly held aboard. This group comprise of the Director General, Deputy Director Generals of department and top executives of UMFCCI. The duration of such event is

61

normally short; ranging from 1 – 3 days depending upon the event. However, the top level functionalities of Women Associations attend longer duration trainings on specific subjects such as Training on SME development, consumer protection and entrepreneurship development. The mid level functionaries are mostly involved in the implementation of the activities as for instance Credit Guarantee scheme and data base development (collect SME information), providing assistance to SMEs on information on market, registration and survey. This group normally attends subject specific training including Training of Trainers on Entrepreneurship and SME development. There has been no specific training on SME cluster development. The concept appears to be new, however it was reported that specific product cluster exist but no systematic attempt has been made to promote SME cluster in Myanmar. The new SME policy has been drafted recently with an emphasis on promotion of industrial clusters in the country especially industrial zones and estates. Trade Directorate of Trade Ministry of Trade

Levels Position Key Role in trade development

Capacity assessment


2-Director General 1-Managing Director

Policy Control Formulating Policy In charge for Day to Day Operati0n

Trained in Public Policy and WTO. The capacity needs of this group are mostly in form of information sharing among nations on trade related matters.


-Deputy Director General -Manager

Guidance and strategy Head of Division-in charge of particular subject/department

Trained in Export Management, FTA, Trade Promotion and WTO. The capacity needs of this group are mostly on FTA utilization by SMEs and Product market intelligence.

Foreign Economic Relation Department (FERD) Directorate of Investment and Company Administration (DICA) Ministry of National Planning and Economic Development Levels Position Key Role in Trade


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1-DG 1-DDG 4-Director

Negotiate and consult with other trade related ministries Compile documents for ASEAN summit, president and AEM

This group normally attends ASEAN Meeting, FTA Meeting, ASEAN dialogue partner negotiation meeting and other forum, seminar, workshop, symposium on trade related issues. This group is trained in management, custom negotiation and investment. The capacity needs of this group are mostly in form of information sharing among nations on trade related matters.


8-Assistant Director Support Negotiator Engage in specific duty but also support Director

This group is trained in trade negotiation, ASEAN Harmonize Tariff Nomenclature (AHTN) and on trade facilitation, logistic. The capacity needs of this group are mostly in FTA utilization by SMEs and Product market intelligence.

Junior level Staff officials under the Directors

Support to superiors, assist in trainings

Trained in trade facilitation, custom integration, computer training, note taking, and effective communication skills. The capacity needs of this group are mostly in FTA utilization by SMEs and Product market intelligence.

Trade Training Institute (MOC) Key Roles in Trade development

Key Roles in Trade development

Key Roles in Trade development

Capacity assessment

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1- Principal 1- Deputy

Principal

Design curriculum Implement curriculum Conduct sessions Supervision Coordinating with the abroad university

This level is trained in ToT on

trade development.

The capacity needs of this

group are mostly in FTA

utilization by SMEs and

Product market intelligence.


3-Supervisor day to day activity preparing course material Conduct sessions organize field visit

Trained in Trade related trainings including WTO. Recommended capacity building program for this category is same as above.

Junior level 6 -Assistant Assist Supervisor and principal

For the trade development in Myanmar, the role of top executive levels in the government department is focused mainly on policy control and policy formulation. The top level executives normally attend ASEAN Meeting, FTA Meeting, ASEAN dialogue partner negotiation meeting and other forum, seminar, workshop and symposium. It was observed that short duration trainings on management, custom negotiation and investment are also attended by the top level executives of the departments under the Ministry of Commerce. The mid level functionaries attends a range of training programmes related to their roles and functions mostly in areas of trade negotiation, ASEAN Harmonize Tariff Nomenclature (AHTN), WTO both within and outside Myanmar. However, no specific training has been attended by any of these groups on FTA utilization by SMEs except the one conducted by Mekong Institute during 2012 which was attended by three mid level officials from Directorate of Trade, Ministry of Commerce.

6.1.4 Vietnam

SME Development Agency for Enterprise Development, Ministry of Planning and Investment Levels Position Key Roles in

SME development

Capacity assessment

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DG, DDG Policy making, This group attends working group on SME in Asia, Asia- pacific Economic cooperation, SME development- APEC ministerial meeting once a year, DG attends the working group 3 times a year. The recommended capacity development for this group includes information sharing on SME policy development, sharing international experience on SME development and SME support besides exposure trips to SME clusters and experience sharing on SME cluster promotion, Cluster research through forums and seminars.

Mid Level Director Dy Director

Implementation of programmes and projects, organize trainings, workshops

Trained on SME linkages, SME start up, business management training. The recommended capacity development for this group is exposure trips to SME clusters and experience sharing on SME cluster promotion, Cluster research through forums and seminars.

VCCI (Women Entrepreneurs Association) Levels Position Key Roles in

SME development

Capacity assessment


DG (1) DDG (2) 80 executive committee members in 63 provinces

Strategy and policy for business development

This group is trained in PR skills, lobby, communication, leadership, management skill and counseling. The recommended capacity development for this group is study visits to SME cluster, Forums to share experiences,

Mid Level (Women Entrepreneurs Assoc)

50 WEA in the country

Own business Trained in Enterprise management. The recommended capacity development for this group is exposure trips to SME clusters and experience sharing on SME cluster promotion.

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Junior level Staff in the secretariat (15) Vice Manager, expert in charge of projects

Deals with international affairs, conduct training, workshops and facilitation

Trained in SME management and Cluster development and marketing. The recommended capacity development for this group is training on SME cluster development through work based assignments besides ToT on cluster development.

Small and Medium Enterprise Promotion Center (VCCI) Levels Position Key Roles in

SME development

Capacity assessment


As mentioned above

Strategy and policy for business development

Trained in PR skills, lobby communication, leadership, management skill and counseling. The recommended capacity development for this group is study visits to SME cluster, Forums to share experiences,

Management level (Small Medium Enterprise promotion Centre)

Director (1) Vice Director (3)

Coordination, supervision

Trained in New tools, approaches, good practices. New approaches such as SPS by UNIDO, visit cluster development. The recommended capacity development for this group is study visits to SME cluster, Forums to share

Mid level Manager Work as team leader for each project

Trained in SME development, SPS, cluster development and value chain development. The recommended capacity development for this group is training on SME cluster development through work based assignments besides ToT on cluster development.

In Vietnam, the roles and responsibilities of the functionaries of SME promotion agencies at the management level are mostly on policy making and implementation strategy and for business development. These categories of officials mostly represents the country at international forums such as working group on SME in Asia, Asia- Pacific Economic Cooperation, SME development- APEC ministerial meeting. The mid level functionaries roles and responsibilities are defined for implementation of policies and program and hence obtain knowledge on new tools, approaches and good practices. In Vietnam, SME cluster development has been initiated through projects supported by UNIDO. The functionaries at all the levels have good understanding of SME cluster and have experience of organizing local trainings on cluster development.

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Trade Multi lateral Trade Division

Levels Position Key Roles in SME development

Capacity assessment


DG- (1) DDG (4)

Negotiation, FTA, coordinating the implementation of agreement and commitment of the FTA, coordination with other line Ministries Inform policies about FTA Policy and strategy

This level of functionaries attends negotiation meetings, e.g Viet –EU, Viet Korea at high level, senior economic official meeting and summits. The recommended capacity building for this category includes strategy planning for ASEAN integration and policy level forum.

Mid level Director (4) Dy Director (3)

In charge of division manages and assist top level , conduct trainings

Trained in Trade negotiation. The recommended capacity building for this category includes strategy planning for ASEAN integration and policy level forum.

Junior level Officials Preparing reports, organize workshops, review queries from enterprise

Trained in trade related issues for ASEAN, WTO, Tariff, RO and Trade in goods. Trade and services. Recommended training for this category includes tariff, rules of origin and FTA utilization by SMEs.

Vietnam Trade promotion Agency Levels Position Key Roles in SME



DG DDG (3)

Planning and implementation Arrange functions – National branding program, International cooperation

This level of functionaries normally attends Asia Trade promotion events, Forum on Best practices of TPOs in Asia, Annual events like Japan ASEAN centre for promotion of trade and investment, Korea ASEAN centre. The recommendations for capacity development for this level includes forum to learn about development trends, opportunities and competition and ASEAN common market.

67

Mid Level Directors Operations and management

Attends policy formulation and are trained in management of projects, state regulations, market research, service provider and project monitoring. The recommendations for capacity development for this level includes forum to learn about development trends, opportunities and competition, ASEAN common market, development of trade promotion infrastructure

Mid Level Directors Operations and management

Trained on market research, business research, report preparation, market intelligence and product design development. The capacity needs of this group are mostly in FTA utilization by SMEs and Product market intelligence.

The agencies involved in trade promotion in Vietnam namely the Multi lateral Trade Division and Vietnam Trade Promotion Agency have well defined roles and responsibilities at all the three levels of functions. The top level executives are mostly involved in policy formulation and strategy development in trade promotion, trade negotiations and the mid level functionaries are assigned through charge of division to manages and assist top level. The top level attends events like trade negotiation meetings and other important events such as economic official meeting and summits. The mid level functionaries attends diverse range of training related to their job functions or updating knowledge on emerging issues in trade such as policy formulation and state regulations. The junior level functionaries attend practical trainings on market research, business research, report preparation, market intelligence and product design among others. It was observed that there is no training on utilization of FTA by SMEs either in the country or outside attended by the functionaries apart from the one conducted by MI during 2012. There is no information system in place on FTA for the SMEs. During the discussion with the key informants, it was suggested that, seminars and workshop should be organized to enhancing knowledge on FTAs and their advantages among SMEs. It was further mentioned that trade Promotion Agencies should be involved in the trade negotiation process for understanding of the FTAs so that TPOs can provide FTA information to the SME exporters.

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Chapter 7: Capacity Building Needs for Target

Groups and Strategies Based on the analysis in the preceding chapter, it is observed that functionaries at different level have specific functions based on job requirements. However, in many cases it is observed that the provisions of trainings are not always tailored with the functions and existing roles and responsibilities of the functionaries. The top management level in relation to their job function, knowledge requirement is mostly in form of information and sharing of experiences, this is also true in some instances of the mid level officials depending upon the nature of the department/organization. But for most of the mid and junior level functionaries, subject specific training and workshops and awareness either through exposure study tours or visits to specific situations are the common capacity building activities. It is mentioned that, the importance of SME development through cluster approach is gaining more attention, noticeably in the case of Vietnam and Cambodia. However, the concept is still at initial stage particularly among the mid level and lower functionaries in all the CLMV countries. With regard to FTAs, the knowledge seems to be limited, particularly its utilization by SMEs. There is no systematic approach or attempt made in any of these countries to enhance utilization of FTAs by the SMEs. Thus, it is pertinent to continue to build capacities of the functionaries on SME cluster development and to enhance the utilization of FTAs by the SMEs. Since the role and functions are different, specific capacity development packages are proposed for different level of functionaries. Package A: This package is proposed for decision makers and senior managers. This executive package will be designed for high level functionaries. As the top level management is mostly involved in the core functions of strategy development, policy development thus any capacity building approach should address to bring a platform to discuss and share experiences and dialogue on issues having regional implications for policy development. This level includes DG, DDG of the departments, President and Vice President of Chamber of Commerce, Directors of Training and Research Institutes. It will be delivered within a day in form of “Forum” and may include:

1) Sharing of results of action research on SME cluster for policy development. 2) Market integration for SME export consortia though Investor forum. 3) Information on product market ( Export product market intelligence)

69

Package B: This package will be designed for mid level functionaries who are mostly involved in the implementation and management of programmes and activities including monitoring and evaluation of projects. This level of functionaries interacts intensively with the donor, line ministries and other stakeholder. Their job demands updating knowledge and information on emerging issues besides skill improvement through new tools and techniques. The study recommends specific workshops with duration of not more than 5 days including short exposure trips to learn best practices. This level constitutes Directors of the Departments, Deputy Director and Technical Heads. This may include:

1) Exposure visits to best practices in form of structured learning visits. 2) Sharing of results of action research on SME cluster for policy development 3) Training of Trainers on utilization of FTA by SMEs

Package C: Specific Training of Trainers (ToT) modules should be targeted to mid level functionaries of Training Institutes or agencies involved in Capacity building programmes as such as Chamber of Commerce, SME association and National level training institutes.

For FTA and trade related activities, ToT should be targeted to mid level functionaries of Institute for Trade in Vietnam, ERIT in Laos, Trade Training Institute in Myanmar and Training division of UMFCCI.

For SME cluster development, ToT should be targeted to mid level functionaries of VCCI particularly Agency for Enterprise Development, Ministry of Planning and Investment , staff of Women Entrepreneur Association in Vietnam, SMEDPO in Laos, General Department of Ministry of Industry, Mines and Energy in Cambodia and Ministry of Industry (Central Department of SME in Myanmar)

Package D: The junior level functionaries are involved in field level implementation and coordination of programs and activities and also assist the upper level. The capacity development intervention for this category could be in form of modular training. This level of functionaries should be targeted for Modular training with work based assignment and experience sharing and feed back in a Synthesis workshop.

1) Modular Training on SME cluster and Export Consortia 2) Training on Product Market Intelligence including developing the data base of

selected product market information.

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7.1 Strategies for Capacity Building and Revised Work Plan

The study reveals that there is need to revise the work plan of the two components of the project on SME cluster development and FTA utilization aiming to address the capacity development needs of functionaries at different levels of the organizations identified. Based on the capacity needs of the specific target groups, the study proposes the implementation strategy of the two components of the study as discussed in the following paragraphs. The strategy for capacity building is based on the existing situation of SME cluster development and FTA utilization (baseline information) and setting the directions for the next stage (where do we want to go), devising modalities for achieving the desired results (how do we get there) thereby identifying activities (what actions do we take) and sustainability of the outputs (how do we stay there).

7.1.1 Component #C: Increased understanding of value SME clusters and export network MI implemented Component ‘C’ on SME clusters and export consortia using modular training approach and conducted five action researches in 2012. After the training, MI staff provided technical supports and coaching to the national trainers to localize the training package in CLMV counties. Four national workshops were conducted to localize the training package in the CLMV countries from June – Oct 2012. Through one modular cycle, 11 SME clusters were formed on selected products including Rattan, rice & instant noodle (Cambodia); silk, handicraft, wooden furniture (Laos); plastic & mango (Myanmar); and tea & 2 ceramics (Vietnam).

71

Simultaneously, MI conducted action researches to document the SME cluster development process in the CLMV countries. Since all the clusters are not yet fully formed and operated, the researchers identified and conducted study on new potential products for export markets with the purpose of identifying the prospective and challenges as well as documenting the best practices in the value chain. Nine action researches were conducted in the areas of rattan and silk (Cambodia), silk and wooden furniture (Laos), mango and fishery (Myanmar), tea and ceramic (Vietnam), and Korat food cluster (Thailand). The following diagram illustrates the activity implementation steps.

Assessment of SME status, SME

export status and FTA utilization in

CLMV

Training on SME cluster

development and Export Consortia

TA and Implementing APs in

CLMV

S&E Workshop on SME

cluster development and

export consortia formation

Component #C: Increased

understanding of value SME clusters

and export network

4 national

workshops on

SME cluster

and Export

Consortia in

CLMV

11 SME

clusters

Formed in

CLMV

Training on SME Cluster

Development and Value Chain

Integration for YGMS researchers

Training on Action Research

Methodology on SME clusters and

value Chain Integration for 4

national Researcher and 4 YGMS

1. Cambodia: rattan & silk

2. Laos: silk & wooden furniture

3. Myanmar: mango & fishery

4. Vietnam: tea & ceramics

5. Thailand: Korat food cluster

Field

Research in

CLMVT

Roundtable

meeting

Policy brief, Dissemination, 5 working papers

Recommendation

Feedbacks

Rec

omm

enda

tion

F

eedb

acks

72

Based on the capacity needs assessment and experience of implementing the first year of the project, it is learned that some delivery mechanism, implementing strategies and curriculums required to be revised and updated to serve the right needs of the target group in the CLMV countries. In order to effectively implement the two components of the project, the following steps and strategies are recommended. Step 1: Identify directions for the next stage – Where do we want to go?

SME clusters and export consortia are formed Pool of trained professional are developed to localize the ToT Training packages Competent professional pool delivers the training package effectively. Trainers are able to coach and provide guidance to form SME cluster and export consortia and prepare the SME consortia for the Investor Forum (Buyer- Seller meet).

Step 2: Modalities for achieving the desired results – How do we get there? Develop curriculum/ training package for different target groups.

Establish partnership with national and provincial organizations involved in SME development. Develop a proper M&E structure. Form implementing team of program officers and build up their technical capacities Empowering/coaching the MI Program Officer and team where necessary.

Step 3: Identify activities – What actions do we take?

SME cluster development is an effective method to support SMEs growth and increase export. Cluster development approach enables to build up synergies between institutions of business development services and SMEs in the clusters and facilitate the industry in improving its competitiveness. Therefore, it is pertinent for the CLMV countries to facilitate the SME cluster development and support SMEs jointly to bid, produce and expand market, through promoting clusters and export networks to improve SME participation in RVCs and GVCs through fostering and strengthening linkages. To facilitate the development of SME clusters and export consortia formation, the study suggests three training packages of “Developing SME clusters and value chain integration” for three different target levels to be implemented in successive manner as follows:

73

It is important to engage research findings and case studies of the CLMV countries as part of the training packages. The participants of the training can deepen their understanding and increase their awareness on the situation of SMEs and development of their respective countries.

1 day

SME Cluster Development and Value Chain Integration

Junior level Executive level

5 days

ToT

Develop a pool of

trained professionals

(Cluster Development

Agents) . The trained

personnel’s will

localize the modular

and ToT training

packages in either

English or native

language at the

provincial and local

levels and also provide

business development

support to the Clusters

Forum, seminar

To sensitize executives

of relevant

organizations on the

importance of SME

cluster development

and value chain

integration in the

national economy and

how to articulate them

into the national

economic development

strategies.

Middle level

5 days

Modular training

Build up capacity of

the targets in both

public and private

sectors, so they can

implement the action

plans and enable to

provide necessary

technical supports to

the SMEs in forming

SME clusters and

export consortia in the

CLMV countries.

Training Package

Targets

Duration

Strategies

Purposes

Action Research

Training and

Country-wise working papers

Policy paper

74

Step 4: Sustainability of the outputs - How do we stay there?

Identify priority SME sectors through national export development strategies and consultation in CLMV countries.

Implement with local partners and building their institutional capacities. Sign MOU and establish partnership with the local partners in the CLMV

countries to ensure target recruitment, ensure commitment to implement action plans, participation on content development and curriculum field test, M&E, technical assistance and localizing the training packages.

7.1.2 Component C3a&b: Market Intelligence Based on the experience of implementing the SME cluster development and field assessment in CLMV, it is observed that the market intelligence for SMEs is quite limited and hence the number of export-oriented SMEs is observed to quite low. The SME’s market share in export trade is very low - 5.7% of SMEs (total export 35.29 %) in Laos involved in export trade in 2006; 16.8% of SMEs in Vietnam engaging in export during the period of 2005-2010. To improve the participation of SMEs in the export market, MI proposes to facilitate the capacity building and the development of product market intelligence. This is proposed in lieu of the training on business research and database development to officials of CCI, SME Associations and SME Cluster leaders as proposed in the original project plan. The development of product market intelligence will comprises of following steps and mechanism. Step 1: Identify directions for the next stage – Where do we want to go?

Increase knowledge on export markets. Orient the target groups to utilize FTAs. In corollary to above, will enhance the utilization of FTAs.

Step 2: Modalities for achieving the desired results – How do we get there?

Develop curriculum/ training package on product market intelligence Products identified for SME clusters development will be the basis for developing

the market intelligence Implement the action plans on identified SME cluster products in the respective

countries Data processed on digital format for information sharing and dissemination

among SME owners, implementers and policy makers.

Step 3: Identify activities – What actions do we take?

Market intelligence is a platform for the primary data, analyzed information about markets with the intention of using it for business decisions. Product Market

75

intelligence can be used to assess market entry opportunities and to formulate market development plans and penetration strategies. Product Market intelligence will comprise of list of products from SME clusters for export markets. It also involves a thorough analysis on product diversities and value added, statistics of trade performance, existing and potential markets, standard and requirements for export markets, importers contact details etc. To develop the product market intelligence, following steps will be undertaken:

Product market information of selected SME cluster products in

CLMV

Support from

CLMV SME cluster

products in CLMV

Dissemination of Digital software

Training

MoIC

CCIs SME org

Research MI web EWEC links

Outputs of Com # C (SME clusters & Export Consortia established

MI provide TA and consultancy supports

Training

Data collection

Analysis & digitization of

data

Software development on product market intelligence on

potential exportable products in CLMV

Product market intelligence for 20 products in each GMS country

Digital format designed Digital market

intelligence developed

Market Intelligence

76


Dissemination of digitized data (CD Rom) as information product for exporters, Business associations, policy makers, trainers and researchers.

Upload the digital information on website of MOIC, training and research institutes, SMEs, Business Association, CCIs etc.

Upload the digital information in EWEC database which is currently hosted at the MI.

7.1.3 Component #D: Increased understanding of FTAs by SME exporters A two week modular training on Enhancing the Utilization of ASEAN FTAs, Trade Negotiation and Trade Policy Development was conducted in 23 July -3 August 2012. The diagram below illustrates the process and results of the conducted activities. It was learned from the experience of implementing the Component ‘D’ that the training on enhancing the utilization of ASEAN FTAs and training on trade negotiation and trade policy development should be provided separately for specific target groups. It is also realized during the need assessment that CLMV are at different stages of development of trade policies, thus needs for trainings are different among the CLMV countries. For these reasons, it will be more meaningful to conduct capacity development on FTA utilization having a direct link with the component ‘C’ on SME cluster development and export consortia so as to enable the SME consortia’s to utilize the FTAs. Keeping this in view, it is important to recruit the right target participants and work through local partners especially with training and research institutes in the respective countries for instance, ERIT, NERI, SMEPDO and DFTP of MoIC in Laos; Trade Training Institute in Myanmar and Vietnam Trade promotion Agency under Ministry of

Action Plan

Implementation

Follow up

Until March

2013

Enhancing the

Utilization of

ASEAN FTAs,

Trade Negotiation

& Trade Policy

Development

Modular Training

Develop trade

weblog

Localized training

package in CLMV

Status

Follow up

32 participants

from GMS (24

from CLMV)

4 group-based action

plans developed

77

Industry and Trade in Vietnam. The delivery mechanism and implementing strategies are revised as follows: Step 1: Identify directions for the next stage – Where do we want to go?

Pool of professionals to deliver knowledge and skill on FTAs to local institutions at the provincial and local levels.

Enhance the knowledge of SMEs on FTAs Increase the number of SMEs utilizing FTAs for export market

Step 2: Modalities for achieving the desired results – How do we get there?

Identify local partners to work together in capacity building on enhancing the utilization of FTAs by SMEs.

Develop TOT package with situation analysis of FTAs utilization in each respective CLMV countries.

Revise and update FTAs training packages and improve the training content in consultation with the local partners, e.g. the training package will be shared with the local partners to accommodate national policy content.

Revised ToT package will be tested with support of local partners. Step 3: Identify activities – What actions do we take?

Moving further towards the facilitation of ASEAN integration, policy makers in CLMV countries need to give priority attention to issues which stretch beyond simply reducing tariffs in goods and services to developmental issues, for example, improving capacities of SMEs in utilizing FTAs. Few CLMV companies possess the necessary knowledge and skills to take advantage of the possible benefits contained in the FTAs, such as, preferential tariffs, easier market access and other business opportunities. However, most SMEs in CLMV countries appear to have limited resources to handle multiple tariff schedules and document requirements and do not fully understand how to utilize the FTA provisions. This limited capacity can be remedied through the development of public human resource capacities and institutional support systems to understand how the FTAs concluded, what they are, what are their benefits, utilizing procedures, how FTAs support the facilitation of SMEs to access to regional and global value chains.

MI proposes to facilitate the utilization of FTAs by SMEs in the CLMV countries through the capacity building program on “Enhancing the utilization FTAs” primarily for private sector and “Trade Policy Development and Trade Negotiations” for public sector. In this regard, the MI will develop two training packages targeting private sector and Government agencies involved in trade promotion activities.

78


Implementing the projects through local partners and building their institutional capacities.

Sign MoU and establish partnership with the local partners in the CLMV countries to ensure target recruitment, commitment to implement action plans, M&E, technical assistance and localizing the training packages.

Engage partners’ participation on content design and accommodate their priorities in the training package as well as field test the materials.

Develop FTA weblog to share FTAs and its utilization in the CLMV countries as well as at MI.

Policy Makers, Chamber

of Commerce, soc,

Enhancing the Utilization of FTAs and Trade Policy

Development and Trade Negotiations

Exporters, Training

Institutes, Chamber of

ToT Workshop

How to utilize the

Economic and

developmental

implications of trade

policies and

negotiations (at the

unilateral, multilateral,

and regional levels),

Inform about the ToT tool in order to build up

capacities of institutional partners so

that they can localize the ToT package in the either English or native

language

5 days 5 days

Working through local training institutes,

research institute, and academic institutes

Develop weblog to

facilitate FTA dissemination

Target groups are:

Chambers of commerce and industries, business

association, SME exporters, import-export offices, BDS

providers

Training

Target

Modality

Duration

Focus

Strategies

Training

Target

Modality

Duration

Focus

Strategies

79

7.2 Revised Work Plan: I. Component #C: Increased understanding of value SME clusters and export network

1. Develop curriculum/ training package for different target groups

1.1 Executive package for policy makers for one day policy level discussions based on the results of action research on SME cluster

1.2 Modular training package on SME cluster Development and Export Consortia for Practitioners

1.3 ToT Package on SME cluster Development for Trainers of Training Institutes 1.4 Action Research Training package on SME Cluster Development for researchers.

2. Conduct Training programmes for different target groups

2.1 Conduct Modular Training on SME cluster development, 2.2 Conduct Localised training on SME cluster development through national

partners 2.3 Conduct Training on Action research on SME clusters, 2.4 Conduct Field action Research on SME cluster, 2.5 Organise Round table meeting on SME cluster, 2.6 Develop working papers on SME clusters and Policy Brief on SME cluster

development in CLMV countries. 2.7 Policy Level Discussion Forum on Results of Action Research on SME cluster.

II. Component C3a & b: Market Intelligence

2.1 Develop Modular training package on product market intelligence 2.2 Conduct five day training on product market intelligence for mid level officials,

junior level officials including IT personnel’s involved in trade promotion activities, exporters, Chamber of commerce and other SME associations.

2.3 Field data collection (action plan implementation) 2.4 Data analysis and digitization and development of software. 2.5 Dissemination of Knowledge products though CD and upload on websites of

Ministry of Commerce, CCI, Business associations and Mekong Institute. III. Component #D: Increased understanding of FTAs by SME exporters

3.1 Develop ToT package on Enhancing Utilization of FTAs by SMEs for practitioners and trainers.

3.2 Develop training package on Trade Policy Development and Trade Negotiation for officials in the government agencies involved in trade policy development

3.3 Conduct ToT programme on Enhancing Utilization of FTAs by SMEs for practitioners and trainers.

3.4 Conduct training course on Trade Policy Development and Trade Negotiation Develop Web blog for FTA information dissemination.

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Annex 1: List of Respondents and the agencies contacted: Cambodia

Name Post Organization Address Country

Kong Rothpidor Assistant President Federation of Associations for SME of Cambodia

Tel: 855 23 993 920 HP: 855 0 15 373 168 , 855 0 11 378 168 E-mail: [email protected]

Cambodia

Mr.Bunna Yea Director Ministry of Industry, Mines& Energy national productivity Centre of Cambodia

Tel: 855 97 556 9999 HP: 855 12 814 150 E-mail: [email protected] , [email protected]

Cambodia

Kham Sorphannary

Treasurer Cambodia Woman Entrepreneurs Association

Mob: 855 12 966 992 Tel: 855 23 22 43 46 E-mail: [email protected]

Cambodia

Duong Chhorvivann

Secretary General Cambodia Woman Entrepreneurs Association

Mob: 855 12 811 971 Tel: 855 23 22 43 46 E-mail : [email protected]

Cambodia

Pao Nhean Ministry of Commerce Trade Promotion Department

Tel : 012 732 660

Cambodia

Vanly Virya Executive Director Facilitating Learning and Capacity Development

Mob: 855 12 864 754 Tel: 855 23 722 117 E-mail : [email protected]

Cambodia

Mr. Phann Sophon

Business Development manager

Baitang(Kampuchea)Plc. Mob: 855 12 428 567 , 855 12 755 177 Tel: 855 23 310 918 E-mail : [email protected] , [email protected]

Cambodia

Sok Sopheak Director General Ministry of Commerce General Directorate for International trade

Mob: 855 12 992 035 Tel: 855 23 866 317

Cambodia

81

E-mail : [email protected]

Oknha te Taingpor

President Federation of Associations for SME of Cambodia

Mob: 855 12 363 168 , 855 16 363 168 Tel: 855 23 993 920 E-mail : [email protected]

Cambodia

Seun Sopha

Adviser (Director of Trade Promotion Department)

Ministry of Commerce Mob: 855 12 900 968 Tel: 855 23 211 745 E-mail : [email protected]

Cambodia

Ouch Savin Deputy Chief of trade partner& Cooperation office

Ministry of Commerce Trade Promotion Department

Mob: 855 12 666 975 Tel: 855 23 216 947 E-mail : [email protected]

Cambodia

Kith Pheara Chief of product development office

Ministry of Commerce Trade Promotion Department

Mob: 855 17 49 50 91 , 855 16 54 77 59 Tel: 855 23 21 69 48 E-mail : [email protected]

Cambodia

Channda Sok President & CEO Mekongnet Mob: 855 12 965 968 Tel: 855 23 22 66 22 E-mail : [email protected]

Cambodia

Oknha Te Taing Por

First Secretary General

Phnom Penh Chamber of Commerce

Mob: 855 12 363 168 , 855 16 363 168 E-mail : [email protected]

Cambodia

Kham Sophannary

Managing Director Direct Qeen Co.,Ltd. Mob: 855 16 966 992 , 855 12 966 992 Tel: 855 23 88 23 97 E-mail : [email protected]

Cambodia

Dominique Dufieux

Public Relations Manager

RMA Cambodia Mob: 855 95 777 110 Tel: 855 23 883 488-2

Cambodia

82


Keo Sovann Managing Director Punloeu Sovann Printing House Tel: 855 12 477709 HP: 089 477 789 E-mail : [email protected]

Cambodia

Matsumoto Akira

President A & M Consultant, Inc. Tel: 81 45 573 6760 HP: 080- 54260950 E-mail : [email protected]

Japan

Laos Name Post Organization Address Country

Phutthasone PHOMVISAY

Chief of SME and Development Division

The Lao National Chamber of Commerce and Industry

Tel : 856-21 453312 HP: 856-20 59971128 , 856-20 7787 3828 E-mail : [email protected]

Lao

Somdy INMYXAI

Director General SME promotion and Development Office

Tel: 856-21 414065 HP : 856- 20 55513193 E-mail: [email protected]

Lao

Dr. Leeber LEEBOUAPAO

Director General MPI , NERI Tel: 856-21 254831 HP: 856-20 22212075 E-mail : [email protected] , [email protected]

Lao

Mr. Boonhom MOUKDASAK

Deputy Director Department of Industry and commerce Khammouane province

Mobile: 020 5585 9996 , 020 5672 6789 , 020 9969 9444 E-mail: [email protected]

Lao

Sadik Mohammad

Managing Director HSMM Group Tel: 856 21 480666 Mob: 856 20 5552 8786

Lao

83

Chowdhury E-mail : [email protected]

Souphaphone INTHAPHONH

Dequty Director Ministry of Industry and Commerce Department of Import and Export

Tel: 856 21 452 452 Mob: 856 20 5630 3394

Lao

Vanxay Keokhamphan

Director of planning& General Affairs Division

Ministry of Industry and Commerce Department of Import and Export

Tel : 856 21 412436-323 Mob: 856 20 56885899 E-mail: [email protected]

Lao

Khambay Sithirajvongsa

Dequty Director of Trade Facilitation Division

Ministry of Industry and Commerce Department of Import and Export

Tel: 856 21 454 224 Mobile : 856 20 22223767 E-mail : [email protected]

Lao

Dathsadachanh Xayaphet

Dequty Director Ministry of Industry and Commerce Foreign Trade Policy Department

Tel: 856 21 452 453 Mobile : 856 20 56008882 E-mail : [email protected]

Lao

Myanmar Name Post Organization Address Country

Mr. Aung Soe Director International Trade Promotion Department

Union of Myanmar Ministry of Commerce Directorate of Trade

Tel. 408331, 401089 E-mail: [email protected] [email protected]

Myanmar

Saw Han Aye Managing Director GRAND HILL Co.,Ltd Tel: 95 05822165, 09-8730132 E-mail: [email protected]

Myanmar

U Soe Than aye State manager Myanmar Agricultural Produce Trading

Tel: 95 58 21041 HP : 95 – 987-30185 E-mail: [email protected]

Myanmar

Khin Ohmmar Moe

Project officer Myanmar Women Entrepreneurs’Association

HP: 95 95179623 tel: 95-1-389376 Email: [email protected]

Myanmar

84

(MWEA)

Dr. Myo Thet Secretary General U.M.F.C.C.I. Tel: 95 1-214343 HP: 95 09-504-0871 E-mail: [email protected], [email protected]

Myanmar

U Tan Shwe Deputy Chief Executive officer

The Republic of the Union of Myanmar Federation of Chambers of Commerce & industry (UMFCCI)

Tel: 95 1-214344-49 E-mail: [email protected]

Myanmar

U Kyaw Soe General manager Ministry of Commerce Myanmar Agriculture Produce Trading

Tel: 95-1-551788 HP: 95-9-5179979 E-mail: [email protected]

Myanmar

Dr. Htein Lynn The principal Ministry of commerce Trade Training Institute

Tel: 95-1-378798 HP: 95-9430-38381 Email: [email protected]

Myanmar

Kyaw Htoo Director General The Republic of the Union of Myanmar Ministry of Commerce Directorate of Trade

Tel: 95-67-408009 HP: 959-8303220 E-mail: [email protected] , [email protected]

Myanmar

Aye Aye Win Deputy Director Ministry of Industry Central Department of SME development

Tel: 95-1-559239 HP: 95-9 5129249 E-mail: [email protected] , [email protected]

Myanmar

Khin Maung Phyu

Association Director Foreign Economic Relations Department

Ministry of National Planning and Economic Development

Tel: 95-67-407149 HP: 09-49208435 E-mail : [email protected]

Myanmar

U Moe Kyaw Joint Secretary General

The Republic of the Union of Myanmar Federation of Chambers

Tel: 951 202 226 HP: 959 511 7859

Myanmar

85

of Commerce & Industry E-mail: [email protected]

Vietnam


Vo thi Minh Le Fellow Vietnam Academy of Social sciences Institute of World Economics and Politics

Tel: 84 4 38574311 HP: 0912338861 E-mail : [email protected]

Vietnam

Le Van Khuong Director Ministry of Planning and Investment, Agency for Enterprise development


Vietnam

Nguyen Thanh Le

Deputy Director Ministry of Planning and Investment, Agency for Enterprise development


Vietnam

Tran Minh Duc Promotion Officer Vietnam Chamber of Commerce and Industry SME promotion Center

Tel: 84 4 35742022-251 HP: 0904 993 399 E-mail : [email protected]

Vietnam

Ta Hoang Lan Officer Ministry of Industry and Trade Vietnam Trade Promotion Agency

Tel: 84 4 3934 7628-66 , 84 4 3934 8143 HP: 0945 378 266 E-mail : [email protected]

Vietnam

Pham Thi Thu Hang Ph.D

Secretary General Vietnam Chamber of Commerce and Industry

Tel: 84 4 35742016 E-mail : [email protected] , [email protected]

Vietnam

Nguyen Thi Hong Nhung , Ph.D.

Deputy Editor in Chief Director

Vietnam Academy of Social sciences Institute of World Economics and Politics

Tel: 84 4 38572295 HP: 0989 187 558 E-mail : [email protected]

Vietnam

Massimiliano Bertollo

International Focal Point

SME Cluster Development Tel: 84 4 3733 8171 HP: 0934 982 205

Vietnam

86


Hoang Mai Van Anh

Programme officer United Nations Industrial Development Organization

Tel: 84 4 3942 4000 HP: 0979 528 798 E-mail : [email protected]

Vietnam

Nguyen Van Canh

ASEAN Division Ministry of Industry and Trade Multilateral Trade Policy Department

Tel: 84 4 2220 5417 E-mail : [email protected]

Vietnam

Do Kim Lang Deputy Director Ministry of Industry and Trade Vietnam Trade Promotion Agency

Tel: 84 4 39348144 E-mail : [email protected]

Vietnam

Nguyen Thi Tuyet Minh

Vice Executive Chairman

Vietnam Women Entrepreneurs Council

Tel: 84 4 3574 6937 HP: 0989 088 819 E-mail : [email protected] , [email protected]

Vietnam

Nguyen Thi Phuong Thao

Expert Vietnam Women Entrepreneurs Council

Tel: 84 4 3574 2022-339 HP: 0915 570 909 E-mail : [email protected]

Vietnam

Japan


Koike Joji Senior Advisor to the Director General Southeast Asia and Pacific department

Japan International Cooperation Agency

Tel: 81 3 5226 9034 E-mail : [email protected]

Japan

Ishida Masayuki Senior Consultant Exe-Idea Ltd. Tel: 81 3 5684 0903 E-mail : [email protected]

Japan

1

The Greater Mekong Sub-Region (GMS)

The Greater Mekong Sub-Region (GMS) comprises five Southeast Asian countries and two provinces of

China sharing the Mekong River, namely Cambodia, Laos, Myanmar, Thailand, Vietnam and Yunan

Province, Guangxi Autonomous Region of the People Republic of China.

About Mekong Institute

The Mekong Institute (MI) is a GMS Inter-Governmental Organization (IGO) working closely with the

governments of six countries to promote regional development, cooperation and integration by offering

standard and on-demand capability development programs across three cutting themes of rural

development for sustainable livelihoods, trade and investment facilitation, and human migration and care.

Mekong Institute (MI)

123 Khon Kaen University, Mittraphap Road,

Muang District, Khon Kaen 40002, Thailand

Tel: (+66) 43 202411-2, or (+66) 43 203656-7

Fax: (+66) 43 343131

Email: [email protected]

Website: www.mekonginstitute.org

Documents

on SME Cluster Development & utilisation of FTAs in CLMV · BCI Business Continuity Institute ... ITD Italian-Thai Development JICA Japan International Agency LBF Lao Business Forum