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SME Cluster Development Initiatives in CLMV countries

SME Cluster Development Initiatives in CLMV countries. Madhurjya Kumar Dutta Program Manager, Mekong Institute, Thailand 29 th October 2012 YGMS Program. AEC 2015. Goal :Regional economic integration by 2015. AEC envisages : a single market and production base,

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SME Cluster Development Initiatives in CLMV countries

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  1. SME Cluster Development Initiatives in CLMV countries Madhurjya Kumar Dutta Program Manager, Mekong Institute, Thailand 29thOctober 2012 YGMS Program

  2. AEC 2015 Goal :Regional economic integration by 2015. AEC envisages : a single market and production base, a highly competitive economic region, a region of equitable economic development, and a region fully integrated into the global economy.

  3. AEC 2015 To transform ASEAN into a region with free movement of goods, services, investment, skilled labour, and freer flow of capital. Areas of cooperation include : • human resources development and capacity building; • recognition of professional qualifications; • closer consultation on macroeconomic and financial policies; • trade facilitation measures • enhanced infrastructure and communications connectivity; • development of electronic transactions through e-ASEAN; • integrating industries across the region to promote regional sourcing; • enhancing private sector involvement for the building of the AEC.

  4. “One Vision, One Identity, One Community” ASEAN GMS Countries - 2010 Land area: 1.94 M sq Km Population: 232 M ASEAN Countries - 2010 Land area: 4.48 M sq Km Population: 614 M

  5. Per Capita GDP – US$ Source:–AEC Chartbook 2010

  6. CLMV -SME situation • SMEs are the backbone of every economy in the GMS. • SMEs- 95% of all private enterprises in the GMS countries • Employ 75-90% of the domestic workforce. • Small Share of SMEs’ production in total domestic output - average 20-40% with direct contribution of SMEs to merchandise export earning is only 15-25 %. • Challenge - how to link more effectively with regional and global markets as SMEs in the CLMV countries belong to domestic market-oriented industries.

  7. Major issues faced by CLMV countries that hinder narrowing development gaps and economic integration into AEC include: Lack of industry clusters and facilities that can provide SMEs access to regional and global value chains Underdeveloped public human resource capacities and institutional support systems to develop and implement trade and investment policy and regulatory framework

  8. Small and Medium Enterprises

  9. Capacity Development for Integrating CLMV Economies into AEC 2015 • Outcomes: • Increased Understanding of Value of SME Clusters and Export Network • Increased understanding and utilization of FTAs by SME exporters Duration:3 years (2012-14)Partners: Ministry of Industry, Commerce, Industry and Trade associations, SME associations in Cambodia, Lao, Myanmar and Vietnam.

  10. Learn to Do Approach: Modular Capacity Development Share to Learn Do to Learn

  11. Implementation Strategy SME Cluster Development and Export Network a. Modular Training Programs • Training on SME cluster and Export consortia b. Action Plan • Implementation of action plan to form cluster and export consortia c. Action Research • Process documentation of action research • Policy Briefs on SME cluster development Investor Forum d. Investor Forum • Market access to SME consortia

  12. SME Cluster and Export Consortia Implement Action Plan on SME cluster development Consortia Identify Sector/Product Capacity Building Group Export Consortium Formed Coaching for Export Consortia Formation Action Plan Preparation for Capacity Building Market Linkage Investor Forum Value Chain Actors Identification Implement Action Plan Coaching Value Chain SME Consortia Group Export Consortium Formed Action Plan Preparation for Export consortia

  13. Action Plan

  14. Task of YGMS in Action Research • To document the process of SME cluster formation and the integration of the selected product into regional/global value chain. • Action research in CLMV countries and Korat Pork SME Cluster in Thailand • Attend one week training programme at Mekong Institute on “Action Research Methodology” during 12-16 November at Mekong Institute, Khon Kaen Thailand. • Assist National Researcher to develop action research plan defining objectives, work plan and deliverables. • Conduct and assist field action research and document process of the identified SME clusters and Export Consortia as per research plan. • Analyze data on SME cluster and export consortia formation on identified SME clusters. • As part of YGMS output, write report on SME product cluster Mekong Institute • Present the final results in MI as part completion of YGMS program.

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