Present by F4 group

by Mr. Khao, Mr. Sak, Mr. Phom, Mr. Oaun (Bounkane)

Target Cluster:

Location Vientiane Vientiane is the capital of Lao PDR, which

located in central of Laos an essential economic zone central of

education(many colleges, school, NUOL) more modern city than other, have many

hotels, apartments (small room)… there are a lot of SMEs who do furniture

business good infrastructure transportation and logistic

Description of Potential Members Small Space Furniture was located in

Chanthabouly District, which has more than 300 wood processing factories and furniture companies which employs about 5000 workforce.

Around the city there are transportation and logistic companies, textile factories; school and, Faculty of Forestry(National University of Laos) also were placed here which educate a lot of furniture workers

Client Products and Services Small space furniture Flooring Household items joinery products Design Repair and maintenance service Etc…….

The Cluster Diagram

CLIENTS

DESIGN needed

Local Suppliers

Wood Bank Kiln Drying Wood - Sizing - Cutting - Edging

Jointing Assembling Upholstering

Chemical

Finishing

Drying

Hardware

- Foam - Textile - ETC…

Showroom Customers Maintenance

School Design

Training centre

Art School

Marketing

Workers

SMALL SPACE FURNITURE

Assembling

Furniture Processing

The Cluster Diagram (Cont’)Products and Service of the SME cluster “ Small furniture space”

Previous Cluster or EC Initiatives Laos don’t have cluster yet

The Diagnostiques Survey Have many small size wood processing

factories run by households Mostly they make the same furniture with

different quality Low price (small value add) Limited skill, low technology, learn by

themselves New Hotels, Restaurants, office…

increase SSF’s demand NEED to create CLUSTER

Potential stakeholders SMEPDO TPPD( Department of Trade Promotion and

Product Development) LNCCI National University of Laos, Faculty of Forestry Lao Wood Industry Association and Lao

Furniture Association GIZ (representative from wood value chain) TFT/WWF Lao Forest and Trade Platform 3 SMEs (largest employment)

Cluster design

Who will be in the Cluster

- SME who have an experience at least 5 years

- Employ at least 10 workers

-

Cluster design (cont’) Incentives

- Organizing a study and business tour in neighboring country(Thailand, Vietnam)- Promoting clusters - Tax incentive- Marketing and Promotion (Better trading environment)- Business matching- Grace period for land (10 years)/ basic infrastructure- Soft loan- Technology transfer

Cluster design (cont’)

Technical Assistance Needed

- Training center

- Design school

- Faculty of Forestry (NOUL) Financial Assistance Needed

- SME fund

- Lao Development Bank (SME bank)

Cluster design (cont’)

Proposed interventions and Potential Sponsors

- JICA

- TDF

- GIZ

- WWF

Conclusions and Recommendations Conclusion

- As mention above: now market need a lot of SSF

- cluster has enough advantages to be able to remain competitive. Now we are ready to produce SSF

Recommendation

- Government should provide: tax credits, innovative financing for furnishings manufacturers, investments in furniture research and development and job training to enhance the skills of legacy manufacturing workers

- government could provide grants for researching innovation in furniture manufacturing.