Transcript Presentation for Nordcham - Welcome to the UNDP Junior

Danida Support to do business in
Vietnam
JPO Workshop 16 June 2004 in Hanoi
Lars Mikkel Johannessen
Development Counsellor
Royal Danish Embassy
Introduction
• Reform process and general support
• The Private Sector Development
Programme
• The Business Sector Programme (prep.)
• Public Private Partnership (prep.)
• The Industrilization Fund For Developing
Countries
Reform Process
• Equitisation of State Owned Enterprises
• Strategy for Public Administrative Reform
• Capacity development in Central Institute for
Economic Management
• TA to State Bank of Vietnam in International
Accounting pracitices
• Capacity development to Business Associations in
Hanoi and HCMC
General support
• Support to Vietnam Business Forum
• Capacity development to Vietnams Garments
Association
• Research cooperation between Vietnamese
and Danish business universities.
Private Sector Development
Program
The PSD Programme
• Objectives:
– Support business-to-business partnerships
– Create economic growth
– Poverty alleviation
• Disbursements in 2003: $ 4.7 million
Criteria for partnership support
• Development prospects (Danida’s
development objectives)
• Open to all sectors of business and industry
• Long-term partnerships
• Commercially viable
Phases of a partnership
Preparation phase
Start-up phase
Project phase
Study visits (by Danish
Partner company)
Two types of start-up
facility:
Business partnerships:
Market and feasibility
studies
Testing the partnership
Training and technical
assistance
Maximum duration of 1
year
Training and technical
assistance
Transfer of knowledge and
know-how
Environmental support
Export promotion
Loans: Based on specific
assessment
Grants: Max. DKK 250,000
Grants:Max. DKK 500,000
Grants: Max. DKK 3 mill.
Case: Mascot Int. A/S
Nhu Quynh Garment Co. Ltd.
• Co-operation on production of
work wear to the Danish market
– Training and technical assistance
in production and marketing
• Located in Hung Yen Province
• www.mascot.dk
Case: Kiki Design A/S
Quang Vinh Co. Ltd.
• Co-operation on production of ceramics
aimed at the Western markets:
– Transfer of know-how in manufacturing and
selling pottery
– Training and technical assistance to creation of
new designs, organising production,
management, marketing and application of IT
• Located in Hanoi
• www.kiki.dk
Case: Topas A/S
Le The Chinh Private Enterprise
• Co-operation on eco-tourism
– Eco-Lodge
– Financial and Technical cooperation
– Training in environmental friendly
tourism
• Located in Hanoi and Sapa
• www.topas.dk
The Business Sector Program
The Business Sector Programme
• We want to:
– Support economic growth through
development of the business sector in Vietnam
• Budget: $ 30 million
• Start late 2004 - five years
Basis for Danida support
• The CPRGS
• Obstacles and barriers for business
development
• Other donors in the sector
In business with the CPRGS
• ”The private sector is an integral part of the national
economy generating more jobs and making an important
contribution to GDP growth”
• ”Vietnam will create a fair and level playing field for all
enterprises”
• Small- and medium-sized enterprises (SMEs) must have
easy access to government support”
Some business barriers
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Insufficient access to capital and land
Limited transparency in the legal system
Poor implementation of reforms
Corruption and harassment of the private
sector
• Limited market knowledge and access
Danida Business Sector
Programme content
•
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Support to the local business environment
Improved labour standards
Competitiveness of SMEs
Improvement of commercial dispute
resolution
• Business related research
Main co-operation partners
• Agency for SME-development, Ministry of
Labour, Invalids and Social Affairs, Ministry of
Justice, National Assembly Committee for
Economic and Budgetary Affairs
• Province based: People’s Committees and
Councils, Business Associations and Trade
Unions
• UNDP, UNIDO, ILO and other donors involved
Public-Private partnership
(under preparation)
• Business Linkage Projects between
Vietnamese SOE’s and Danish companies:
Support to ’due diligence’ assessements in
relation to equitisation of SOE’s.
• Public/private investment: Joint
investments from Danida and private
Danish companies in Vietnam
The Industrialisation Fund for
Developing Countries
• IFU offers capital and advice to joint venture
enterprises in developing countries
• IFU participates as a partner in the joint ventures
through committing equity capital and/or loans
through board membership
• Carlsberg, KMC, Sea Saigon Shipping, Orana,
Scancom, Vidagis
Stay in business
stay in contact
• Thomas Bo Pederesen – Business
counsellor at the RDE, Hanoi
Thanks for your attention