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SME Cluster Development In Vietnam

Progetto UNIDO / VIETNAM SME Cluster Development in 3-4 selected sectors . Business matching with Italian businesses . 26 Maggio 2010 - Firenze c/o TOSCANA PROMOZIONE. SME Cluster Development In Vietnam. UNIDO-MPI Project TEVIE08003: SME Cluster Development in Vietnam.

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SME Cluster Development In Vietnam

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  1. Progetto UNIDO / VIETNAM SME Cluster Development in 3-4 selectedsectors. Business matchingwithItalianbusinesses.26 Maggio 2010 - Firenzec/o TOSCANA PROMOZIONE

  2. SME Cluster Development • In Vietnam

  3. UNIDO-MPI Project TEVIE08003:SME Cluster Development in Vietnam A cooperation agreement between the Government of Italy and the Government of Vietnam • to support SME Development in Vietnam • to promote Business Partnerships among Italian and Vietnamese enterprises

  4. Some basicfigures • The Govt. of Italy funded the project with 3 Million Euro • ASMED - MPIis the Govt. of Vietnam counterpart, UNIDO the implementing agency • the project was approved in Jan. 2009 and actually started in July 2009 • its expected duration is 30 months

  5. The project at a glance Three interrelated components / outputs: 1) Mapping (identification) of main SME Clusters in Vietnam 2) Development actions: Cluster upgrading, association and institutions capacity building, enterprise level upgrading 3) Cluster twinning and establishment of business partnerships with Italian clusters and enterprises

  6. Twinning with Italian Districts Promote cooperation agreements between selected VN clusters and corresponding Italian clusters based on: • Promotion of Italian Cluster Model’s best practices • Analysis of the firms/clusters training needs and implementation of the relevant training program. • Analysis of the existing technological level at the firms’ level and filling of the gaps. • Selection of a core group of SME with growth potential in each cluster to support for twinning

  7. Cluster Twinning Component Forging cooperation agreement Vietnam Cluster Italian Cluster 1) Dissemination in Vietnam of the Industrial District Model 2) Transfer of Italian manufacturing expertise 3) Promotion and support to business agreements

  8. Twinning actions • Identifying Italian potential partners • Promoting initial MOU among Vietnamese and Italian Associations at general / district level • Study tours to visit Italian Clusters for selected Vietnamese Enterprises, Associations and Institutions. Exposure to Italian best practices. • Training and Technology transfer • Missions of Italian Enterprises and Associations to Vietnam, for business matching with each Cluster • Specific technical support creating business agreements among Italian / Vietnamese enterprises

  9. Role of Italian business associations • Public and Private Italian business and sector associations will be an important partner of the project: • Disseminate information among associated enterprises • Collect interests and demands from their enterprises • Create a framework for enterprise twinning through MOU, information exchange and cooperation with corresponding Vietnamese associations • Promote transfer of technologies and best practices to the Vietnamese association and cluster • Assist Italian enterprises in their internationalization projects

  10. Opportunities for Italian enterprises • Vietnam offers great production capacity at low costs, a huge potential if matched with Italian design, technology and know-how • An expanding internal market and the access to the ASEAN free trade area (AFTA), global market of nearly 1 billion people size • The project will support Italian companies willing to exploit these opportunities: • Facilitating contacts with known and reliable partners • Supporting the capacity upgrading of Vietnamese partners • Supporting direct contacts through study tours and business matching missions • Potential outcomes for Italian companies: • Joint ventures: Italian design and technology + local production capacity • Production outsourcing • Sourcing of components and semi-finished products • Investing within a conducive cluster environment • Opening of new markets in Vietnam and SE Asia • Facilitated market access for Italian technologies, machinery and know-how => a win-win approach with Vietnamese partners

  11. Manufacturing sectors currently focused • Garment and textile • Footwear and leather products • Wood processing and furniture • Food processing (sea, aqua-agriculture) The mechanical sector (tools, machinery, components) will be investigated. The final selection of 3/4 clusters/sectors will largely depend on the active and concrete interests expressed by Italian enterprises and associations of matching sectors in this phase (March to May 2010)

  12. Potential clusters visited in Nov. 2009: Garment/Textile:- Hung Yen- Thai Binh Wood Processing:- Binh Dinh- HCMC/Binh Duong Leather/Footwear:- Hanoi (Phu Yen)- HCMC/Binh Duong Food (aquaculture) processing:- Ben Tre- Can Tho New visits will be planned with the support of Italian technical experts designated by engaged business associations

  13. 6 months Project work plan May/June 2010 Identification of the Vietnamese candidate clusters in different sectors, field visits and qualification of clusters DONE May/June 2010 Identification of Italian partners: enterprises and sector associations actively engaged ON THE WAY May /June 2010 Selection of up to 3/4 clusters to upgrade and twin. Initial MOU among Italian/Vietnam associations Jun-Aug 2010 Recruitment of a Cluster Development Team, training, Cluster diagnostic, Action plan

  14. Expected Outcomes of the project Direct outputs: • In up to 3/4 clusters, institutional twinning between Vietnamese and Italian industry associations is established. • Up to 3/4 Vietnamese industry associations are providing quality improvement and development services to enterprises in their clusters • Vietnamese and Italian firms in each cluster have initiated enterprise level contacts and are considering specific business proposals. Development objectives: • Increase in the contribution of SMEs in selected clusters to the provincial GDP. • Increase in the export turnover of the selected clusters at the provincial level. • Increase in the employment created by selected clusters at the provincial level Possible Outcomes: • Replication of Cluster initiatives directly implemented by the Vietnamese Government (and other donors) • Italian training technical centers • Focus on Cluster Development as an SME development tool in Government policies

  15. Carlo BELLITI c.belliti @ tin.it 392 9707226 055 8819805

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