USAID Linkages for Small and Medium Enterprises (LinkSME) Project
Linkages for Small and Medium Enterprises (USAID LinkSME) Project Quarterly Progress Report (QPR) – Year 1 (Yr1) Quarter 1 (Q1) Covering the Period September 5, 2018 to December 31, 2018 Submitted January 30, 2019
This Quarterly Progress Report was made possible through support provided by the U.S. Agency for International Development (USAID). The opinions expressed herein are the sole responsibility of IESC and do not necessarily reflect the views of USAID or the United States Government.
Submitted on January 30, 2019.
Prepared under the USAID Linkages for Small and Medium-sized Enterprises (USAID LinkSME) Contract No. 72044018C00002 managed by International Executive Service Corps
IESC Contact
Ronald Ashkin USAID LinkSME Project Director Pullman Hotel Fourth Floor Office Suites (Temporary Office) 40, Cát Linh, Đống Đa, Hà Nội Hanoi, Vietnam Tel: +84 358 021 163 Email: [email protected]
Chad Ford Associate Vice President International Executive Service Corps 1900 M Street, NW Suite 500 Washington, DC 20036 Tel: (202) 589-2643 Email: [email protected]
Front cover photograph: USAID LinkSME project visit to Tien Thinh Company, Ho Chi Minh City
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 1 Table of Contents Acronym list 4 Executive Summary 6 I. Introduction 7 II. Progress Against Planned Activities 8 A. TA 1. Establishing One-to-One Relationships Between FFs and SMEs 8 TA 1.1 Identification of Foreign Firms 8 TA 1.2. Development of FF Requests for Proposals 10 TA 1.3 SME Outreach and Two-Stage Shortlisting 10 TA 1.4 Linking SMEs to Foreign Firms 11 TA 1.5 Final Selection of SME Suppliers 11 TA 1.6 Technical Assistance to SME Suppliers 11 B. TA 2: Supplier Days 11 TA 2.1 AmCham Sponsored Supplier Days 11 TA 2.2 Sector-Specific Supplier Days 12 TA 2.3 Pre-Supplier Day Training 12 C. TA 3: Outreach and External Communications 12 E. TA 5: Baseline Assessments 13 F. TA 6: Phase 2 Sector Selection Process 14 G. Next Quarter Technical Activity Highlights 14 III. Progress related to Monitoring, Evaluation, and Learning 15 A. Development of AMEL Plan and Status 15 B. Table of Indicators with Baseline, Y1 Targets, Y1 Achieved to Date, LoP Target 16 C. Analysis of Indicators as Applicable 17 III. Project Management 17 A. Mobilization 17 B. Project Registration, Organizational Registration, and Local Offices 18 C. Management Approach and Structure 19 D. IESC Home-office Oversight and Support 20 E. Communications and Outreach 20 D1. Branding Implementation Plan and Marking Plan 20 E2. Communications Materials Production 20 E3. Outreach Activities 21 F. Reporting 22 G. Next Quarter Project Management Support 22
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 2 IV. Challenges and Proposed Solutions 22 Annex A – Updated Implementation Plan 24 Annex B – Financial Reporting FY19 Q1 25 Annex C – Summary of Electronic Attachments 25
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 3 Acronym list
AHK Delegate of German Industry and Commerce in Vietnam AmCham American Chamber of Commerce AMEL Activity Monitoring, Evaluation, and Learning APCA Administrative Procedure Control Agency ASEAN Association of Southeast Asian Nations AWP Annual Work Plan COR Contracting Officer’s Representative CRM Customer Relationship Management CSID Centre of Supporting Industries Development EG2 Economic Growth and Governance EICC Electronic Industry Citizenship Coalition EWI East West Industries FF Foreign Firm FOEM Field Office Employee Manual GIG USAID Governance for Inclusive Growth Program GVC Global Value Chain GVN Government of Vietnam HAMEE Ho Chi Minh Association of Machinery and Electric Enterprises HCMC Ho Chi Minh City HR Human Resources IEE Initial Environmental Examination IESC International Executive Service Corps INGO International Non-Governmental Organization IT Information Technology ITPC Investment and Trade Promotion Center JETRO Japan External Trade Organization KoCham Korean Chamber of Commerce LinkSME (USAID) Linkages for Small and Medium Enterprises LOE Level of Effort LOP Life of Project LTTA Long Term Technical Assistance MEL Monitoring, Evaluation, and Learning MOU Memorandum of Understanding MPI Ministry of Planning and Investment ODA Official Development Assistance OOG Office of the Government PACCOM The People's Aid Coordinating Committee PD Project Director PDI Pre-Delivery Inspection PIRS Performance Indicator Reference Sheet Q Quarter QPR Quarterly Progress Report RCH Hugin Cash Registers
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 4 RFQ Request for Quotation RFP Request for Proposal SME Small and Medium-sized Enterprise STTA Short-Term Technical Assistance TA Technical Assistance TCA Trade and Competitiveness Activity U.S. United States USABC U.S. – ASEAN Business Council USAID United States Agency for International Development VAMI Vietnam Association of Metal Industries VASI Vietnam Association of Supporting Industries VCCI Vietnam Chamber of Commerce and Industry VEIA Vietnam Electronics Industry Association VIMAF Vietnam International Machinery Fair VSQI Vietnam Standards and Quality Institute
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 5 Executive Summary USAID LinkSME mobilized and initiated the operations and technical resources needed to commence its mandate to strengthen the supplier-buyer relationships between Vietnamese small and medium enterprises (SMEs) and foreign firms (FFs) by helping local firms participate in global value chains (GVCs). USAID LinkSME aims to improve the business environment by lowering costs for FFs located in Vietnam to source locally, while presenting a huge opportunity to grow Vietnam’s SME sector and build its middle class, major consumers of American products. The project is also helping to improve Vietnam’s regional competitiveness, by making it a more attractive and predictable investment climate and supporting the Indo Pacific Strategy’s competitiveness pillar.
To highlight technical accomplishments during this quarter, the Year 1 annual work plan (AWP) was submitted and approved; the activity monitoring, evaluation, and learning (AMEL) plan was submitted on schedule; and, the SME Advisory Group commenced with nomination and approval of seven members representing the public sector, chambers of commerce, and trade associations from the target sectors. Extensive private sector outreach in the first quarter led to discussions with 47 foreign firms and 24 associations, chambers, and organizations, resulting in the signing of six memoranda of understanding (MOUs) that frame future cooperation. Among the MOUs were the first three FFs that will work with USAID LinkSME to deepen their local SME supply chains. In the first quarter, the team established an online registration system and customer relationship management (CRM) database. From contacts with approximately 1,500 Vietnamese SMEs, USAID LinkSME met and spoke with 381, of which 262 registered online; 62 are in the project’s target sectors of electronics and metals. The team visited and/or contacted 12 industrial parks and coordinated with 14 donors and implementers. As part of the donor outreach, the project organized a roundtable on Theories of Change for SME Development in coordination with USAID’s global Trade and Competitiveness Activity, which provided USAID LinkSME an early introduction to the donor sector.
Major project management accomplishments this quarter include activation of the short-term startup team and mobilization of key long-term personnel, which included fielding two international staff members, the Project Director (Chief of Party) and Foreign Firm Linkage Component Director. The International Executive Service Corps (IESC) engaged the two long- term consortium partners, fully executing KPMG’s subcontract and making significant progress towards finalizing Taj Media’s subcontract. IESC established project offices in Hanoi and Ho Chi Minh City (HCMC) with IESC administrative systems, policies, and procedures in place. IESC onboarded proposed local staff members and recruited five additional local staff members, covering both locations.
With support from USAID, the team advanced project approval with the Government of Vietnam (GVN), working closely with counterpart Office of Government (OOG) to prepare, review, and submit the project technical outline and respond to questions related to project approval. Nevertheless, project approval remains in progress into Q2.
USAID LinkSME co-presented the project with USAID at American Chamber of Commerce (AmCham) HCMC’s Supplier Day on October 4, 2018, just 30 days after the contract start date.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 6 With USAID, the project established communication channels, which include submitting weekly bullets and events calendars, and conducting weekly management/technical meetings between project senior management and USAID. Bimonthly IESC home-office and USAID reviews were also started during this period. With review and approval support from USAID, the project developed program factsheet and brochures (in English and Vietnamese) for the first quarter events and outreach.
By the conclusion of this first quarter, USAID LinkSME made significant progress in achieving its startup activities while reaching both private and public sector stakeholders. The private sector outreach is advancing. Discussions with multiple stakeholders noted a universal enthusiasm for USAID efforts to address Vietnamese SMEs’ effective integration into global supply chains as needed, timely, and welcomed.
I. Introduction Contract Requirements for USAID LinkSME QPRs The purpose of USAID LinkSME is to spur systemic changes in relationships Activities completed under each planned intervention; Activities to be undertaken in the following quarter; between Vietnamese SMEs and FFs and Outputs accomplished and results realized in the quarter; thereby achieve significant increases in Any challenges during the implementation period and the quantity and/or quality of business proposed solutions. Private Sector Engagement: (1) Description of where linkages between Vietnamese SMEs and private sector contributions have been sought and received, FFs. Systemic changes include evidence- and how these contributions have contributed to the based regulatory and policy achievement of the overall objectives; (2) Report on the value of private sector contributions (by the quarter, and recommendations to improve the SME cumulatively -both financial and in-kind); enabling environment. The cost-plus- Collaboration and coordination with other relevant USAID award-fee contract is valued at and donor activities and GVN; Aggregate outputs accomplished and results realized approximately $22.1 million, not since project inception; including the award fee. The current Budget execution, clearly showing actual versus planned obligation is approximately $5.9 million expenditures, and a forecast of the expenditures for the remainder of the project; with spent to date as of December 31, Demonstration of steps taken to analyze the Contractor’s 2018 at $771,073.19. As per Section F, own progress against desired results and to devise solutions, Deliveries or Performance, F.6. propose course corrections, and identify whether new stakeholders should be engaged to ensure program success; Deliverables, subpart a. Quarterly Electronic copies of all reports, success stories, and other Progress and Financial Reports found on relevant documents prepared during the quarter (to be page 11 to 12 of the USAID LinkSME submitted as attachments); Total funds committed by date by USAID into the Contract; contract, this combined quarterly Total funds expended by the Contractor to date, including progress report (QPR) and financial a breakdown to the budget categories provided in the report was submitted thirty (30) days Contractor’s cost proposal and between Technical and Administrative services, with additional detail to be provided following the end of the first full fiscal upon request by the COR; quarter. The report is no more than 25 Pipeline (committed funds minus expended funds). pages1 and reflects the structure of the approved USAID LinkSME Year 1 AWP. The text box includes a list of points the report addresses per the contract requirement. The financial report includes costs to date, including those for subcontracts, the budget estimate
1 The Google drive is USAID/Vietnam’s preferred platform. Google Docs does not allow section breaks, which help with section numbering. The QPR is 25 pages with the report’s starting at the Executive Summary and ending with Annex C, even though the TOC reflects number as of the cover page.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 7 for the upcoming quarter, variations from previous estimates (which, if significant, are highlighted on spreadsheets and addressed in a narrative), and the estimated cost to complete the quarter. The financial report format was agreed to by the USAID LinkSME Contracting Officer’s Representative (COR).
IESC is the prime implementer of USAID LinkSME, joined by KPMG Vietnam and TAJ Media. Under this Contract, IESC is supporting USAID/Vietnam’s Objectives: 1) Strengthen the SME- GVC Business Linkage Framework; and, 2) Enhance Vietnamese SMEs’ capacity to supply GVC firms in five sectors. II. Progress Against Planned Activities Progress against the project technical activities (TAs) are described below. More detail on the timing of each TA, responsible and assisting team members, and deliverables and milestones, can be found in the Gantt Chart referenced in Annex A and attached separately. The assigned budget figures are included at the activity level as they relate to direct costs associated with training, events, and short-term technical assistance (STTA). These activity-level costs do not include long-term IESC staff level of effort, travel and associated indirect costs. These costs are captured in the total budget spent to date against Year 1 budget planning for Year 1 included as Annex B of this QPR.
A. TA 1. Establishing One-to-One Relationships Between FFs and SMEs Technical Activity 1 (TA1) is encouraging one-to-one matching between FFs and Vietnamese SME suppliers. TA1 Assigned Budget: $637,750.
TA 1.1 Identification of Foreign Firms Starting with the introduction of the program to the Vietnam business community at AmCham’s 2018 Supplier Day in Ho Chi Minh City on October 4, 2018, USAID LinkSME’s FF Linkage Component Director and FF Linkage Manager met with 47 FFs sourcing from the electronics and metals sectors, both at trade events and at individually-scheduled meetings. Notable among the FFs met included the following: Brother Nakayama Mitsubishi Northstar Polaris East West Industries Steel Products RCH (EWI) Nidek Suzume Trading Fluid Power & Controls Omron Ultralox Foster Osco International Wahl Intel Penflex Yuasa Trading Vietnam
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 8 By December 31, 2018, USAID LinkSME signed MOUs with the first three FFs who agreed to participate with the project to expand their local content and source components from following Vietnamese SMEs:
1. Penflex Vietnam Co., Ltd. (USA, metal hoses) – December 4, 2018; 2. RCH Vietnam LLC (Italy, Point-Of-Sale devices) – December 12, 2018; and, 3. Northstar Precision (Vietnam) LLC (USA/Taiwan, powersport vehicles) – December 18, 2018.
To cast a wide net and further identify potential FFs who are manufacturing in Vietnam or otherwise sourcing from Vietnam, as well as identify potential suppliers for them, in the first quarter USAID LinkSME team members met with 43 trade associations, chambers of commerce, foreign trade promotion organizations, and other business organizations, including the following:
Chambers of Commerce ● Delegate of German Industry and Commerce in Vietnam (AHK) Hanoi ● AHK HCMC ● AmCham Hanoi ● AmCham HCMC ● German Business Association ● Korean Chamber of Commerce (KoCham) ● Vietnam Chamber of Commerce and Industry (VCCI)
Trade Associations ● HCMC Association of Mechanical and Electrical Enterprise (HAMEE) ● Vietnam Association of Mechanical Industries (VAMI) ● Vietnam Association of Supporting Industries (VASI) ● Vietnam Electronics Industry Association (VEIA)
Trade Promotion Organizations ● Centre of Supporting Industries Development (CSID) ● Da Nang Department of Industry and Trade ● Da Nang Science and Technology Department ● Da Nang Investment Promotion and Management Division ● Hai Phong Department of Industry and Trade ● Hai Phong Science and Technology Department ● Investment and Trade Promotion Center (ITPC) ● Japan External Trade Organization (JETRO) ● VCCI SME support services Center of Ho Chi Minh City ● VCCI Service and Trading Limited Company ● Osaka Foundation for Trade and Industry ● Sagamihara Industrial Promotion Foundation ● Thai Consulate ● VCIC Vietnam ● Tokyo SME Support Centre
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 9 ● United States - Association of Southeast Asian Nations (ASEAN) Business Council (USABC) ● Vietrade and PROMOCEN ● SME Development Support Center 2 (SMEDEC2) ● Vietnam Certification Center (QUACERT)
Industrial zones ● Management Board of high-tech parks and industrial zones of Danang ● Long Hau Industrial zone ● HCM high-tech park
Among support organizations, the following three signed MOUs with USAID LinkSME in Y1Q1: 1. AmCham Hanoi 2. Dong-A University Startup Support Center 3. HAMEE
The HAMEE MOU was executed at the Vietnam International Machinery Fair (VIMAF)/Vietnam Supporting Industry Fair (VSIF) and VSIF Conference 2018 in HCMC on December 13, 2018. USAID representatives were present.
TA 1.2. Development of FF Requests for Proposals FF Requests for Proposals (RFPs) began in December 2018 with the receipt of component sourcing requirements from Penflex, the first firm with whom USAID LinkSME signed an MOU. USAID LinkSME staff are working with Penflex to define product specifications as well as their customer-specific requirements such as logistics, packaging, and volumes.
TA 1.3 SME Outreach and Two-Stage Shortlisting USAID LinkSME’s SME Linkage Component Director and SME Linkage Officer contacted approximately 1,500 SMEs and met with 381 SMEs in the first quarter, both at trade events and at individually-scheduled meetings. Interested SMEs can also register online as the project established a bilingual form at http://bit.ly/LinkSME1. In Q1, 262 firms registered their interest. Of these online applicants, 62 were from the project’s target sectors of electronics and metals. Figure 2 and Table 1 illustrate the winnowing process from initial contact of 1,500 SMEs to the evaluation pool of SMEs as potential suppliers in the case of Penflex, the first LinkSME FF partner.
As a demand-driven project designed to serve real FF Figure 2: The Winnowing Process from Initial needs, an early lesson for the team is that the project Contact to SME Evaluation - Graphic will need a large database of SMEs to identify enough potential SME suppliers. The approximate proportions are illustrated to the right.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 10 TA 1.4 Linking SMEs to Foreign Firms After receiving product requirements from Penflex and matching five SMEs as potential suppliers, field visits to the potential SME suppliers were arranged for early in Q2. The initial data match will be followed by a two-stage screening process which must be conducted on-site by the SME Linkage team: the first stage assesses the SME’s general capabilities prior to nomination to the FF, and the second stage is an in-depth assessment that sets a baseline for gap analysis and upgrade after selection by the FF.
TA 1.5 Final Selection of SME Suppliers Not applicable for QPR 01 as activity will commence late Q2/early Q3.
TA 1.6 Technical Assistance to SME Suppliers Not applicable for QPR 01 as activity will commence late Q2/early Q3.
B. TA 2: Supplier Days SMEs will meet with FFs directly through supplier days and trade fairs as well as events sponsored by collaborating institutions, particularly VEIA, VAMI, and VASI. During these events, FFs gain more information about potential Vietnamese SME suppliers and SMEs ask questions to and set up meetings with the FFs. Supplier days supplement project efforts to establish direct linkages. Similar to a trade show, supplier days will feature both SME and FF booth displays. TA 2 Assigned Budget: $277,620.
TA 2.1 AmCham Sponsored Supplier Days USAID Economic Growth and Governance (EG2) Director and the Project Director introduced the USAID LinkSME project during the plenary session AmCham’s Supplier Day event in HCMC on Thursday, October 4, 2018. The all-day event included more than 350 FFs and Vietnamese SMEs, including 20 chambers and business associations. USAID LinkSME worked a table in the exhibition area and entertained inquiries from potential program participants. AmCham is a key organization in the business support services environment in Vietnam. This event introduced the project to a targeted audience and started actual negotiations with participating firms.
USAID LinkSME signed an MOU in November 2018 with AmCham Hanoi to co-organize the first-ever supplier day event in Hanoi, planned for April 2019. A meeting with AmCham Hanoi took place on October 29, 2018, to discuss organizational topics and responsibilities.
Discussions were held with AmCham HCMC in October and December 2018 to organize the first-ever supplier day in Da Nang, to agree on organizational tasks and upcoming meetings with the Danang local government. The Da Nang Supplier Day is planned for June 2019. In addition,
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 11 USAID LinkSME will co-sponsor AmCham’s 2019 Supplier Day in HCMC with the goal of significantly expanding the roster of exhibitors.
TA 2.2 Sector-Specific Supplier Days The project team started to reach out to industrial parks such as Becamex, BW Industrial, Long Hau, Da Nang Hi-Tech Park, and Hai Phong from October to end-December 2018. Discussions were conducted about setting up roadshows, with USAID LinkSME visiting the industrial parks and pitching the project’s benefits to tenants. A roadshow kit to be used for roadshow events and exhibitions is currently under development.
USAID LinkSME also plans to participate in established commercial sector-specific trade fairs in Vietnam during 2019, such as Metalex (metals sector) and Nepcon (electronics sector).
TA 2.3 Pre-Supplier Day Training The first USAID LinkSME Supplier Day is scheduled for late April 2019 prior to which the project will deliver half-day training to coach Vietnamese SME exhibitors on successfully marketing their capabilities to FFs.
C. TA 3: Outreach and External Communications Until project registration with the GVN is achieved, high-profile outreach and external communications were delayed, replaced by working through stakeholder events with a lower profile. A list of materials produced during this quarter for outreach and external communications is included in Annex C. The project’s communication and outreach manager joined the team in December 2018.
From October 11 to 13, USAID LinkSME participated in Metalex Vietnam organized by Reed Tradex. Metalex was an international exhibition in HCMC and part of ASEAN’s largest machine tool and metalworking technology trade exhibition and conference on machine tools and metalworking solutions for production upgrades. There were approximately 300 exhibitors mainly in the metals and electronics sectors, with FFs from Taiwan, Singapore, Japan, Thailand, Germany, China, and Korea as well as Vietnamese enterprises. The event was attended by around 6,000 participants on first day and 8,000 on the second day. The team conducted significant discussions with 12 FFs (including Canon, Brothers, Foster, and Omron) as well as 5 organizations from Japan interested in this program. Including Vietnamese SMEs, nearly 500 enterprises expressed interest in working with the project. On October 12, 2018, the project’s FF Linkage Director and SME Linkage Director formally presented the project at the Vietnam Supporting Industries Forum, which was co-sponsored by VEIA and the Vietnam Standards and Quality Institute (VSQI). The forum’s focus was the electronic sector’s Electronic Industry Citizenship Coalition (EICC) code of conduct standards needed to participate in the global supply chain. EICC are industry established standards related to employee working conditions, business ethics, and environment safeguarding included within business operations. TA 3 Assigned Budget: $59,200.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 12 D. TA 4: SME Advisory Group Part of USAID LinkSME's mandate from USAID included forming an SME Advisory Group comprised of relevant private and public-sector representatives. The advisory group will provide strategic direction to the USAID LinkSME contract. It will serve similar to a steering committee that will engage at strategic inflection points in the project. Chief among these will be advising the sector selection process at the end of Phase I, when the project will expand from two to five sectors. In addition, regular meetings (contemplated to be held no less than three times per year) will provide the opportunity for the SME Advisory Group to review progress, understand lessons learned, and recommend real-time modifications to the project as necessary. TA4 Assigned Budget: $6,000.
IESC submitted notice of the commencement of the SME Advisory Group to USAID for approval on December 4, 2018. Approval for establishment of the group was granted by the COR on December 19, 2018. The group consists of seven members and two representatives from USAID, the COR and the Director of EG2, with observers participating from time to time. Table 2 below details charter membership:
Table 2 LinkSME SME Advisory Group Membership No Name Designation Organization Contact Details 1 Mr. Nguyen Deputy Director Administrative Procedure Email: [email protected] Nguyen Dũng General Control Agency (APCA), Address: No. 1 Hoang Hoa Tham, Ba Dinh, Hanoi Office of the Government Telephone: +84 904117989 2 Mr. Le Van Director of Enterprise Development Email: [email protected] Khuong Center of Agency, Ministry of Address: Ton That Thuyet, Cau Giay, Hanoi Northern SMEs Planning and Investment Telephone: +84 904872179 Support 3 Mr. John Executive AmCham Ho Chi Minh Email: [email protected] Rockhold Director Chapter Address: New World Hotel Suite 323, 76 Le Lai Street, District 1, Ho Chi Minh City Telephone: +84 2838243562 4 Ms. Nguyen Deputy Director VCCI Email: [email protected] Thi Hanh of SME Address: No. 9 Dao Duy Anh Street, Dong Da District, Promotion Center Hanoi Telephone: +84 904206626 5 Mr. Do Phuoc Vice Chairman VASI Email: [email protected] Tong HAMEE Address: 310A Luy Ban Bich St., Ho Thanh Ward, Tan Chairman Phu District, Ho Chi Minh City Telephone: +84 903663866 6 Mrs. Do Thi Member of VEIA Email1: [email protected] Thuy Huong Executive Board Email2: [email protected] Address: 11th Floor, MIPEC tower, 229 Tay Son Street, Dong Da District, Hanoi Telephone: +84 903291771 7 Mrs. Le Thi Administrative VAMI Email: [email protected] Hong Loan Manager Address: 203 - 205 Nguyen Thai Binh Street, District 1, Ho Chi Minh City Telephone: +84 2838216710
E. TA 5: Baseline Assessments Per the contract, 180 days after the AMEL Plan has been approved, USAID LinkSME will complete baseline assessments for a pre-identified set of sectors in consultation with OOG (Committee IV) and USAID, including but not limited to the two target Phase 1 sectors. With the AMEL Plan pending as of the date of this report, the April 5, 2019 date for this deliverable is
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 13 expected to shift to July 5, 2019. The team, scopes of work, and composition would be determined at the end of Quarter 2 and fielded in the third quarter (e.g. May and June 2019). TA5 Assigned Budget: $113,500.
F. TA 6: Phase 2 Sector Selection Process Not applicable at this time as activity will commence late Q3 of the second year.
G. Next Quarter Technical Activity Highlights Activities planned for the second quarter (January 1 through March 31, 2019) include the following:
GVN Liaison ● Draft Project Document and obtain project approval from GVN.
SME Advisory Group ● Hold SME Advisory Group formative meeting in January.
Partnering with Other Organizations ● Build partner portfolio – continue to execute MOUs with additional chambers and associations; ● Pursue MOUs with other referral sources and support organizations; and, ● Continue coordination with the donor/implementer community.
Advancing the Linkage Process ● Continue building FF portfolio and execute new MOUs; ● Identify products for localization with Northstar Precision, Fluid Power and Controls, East West Industries; ● Screen potential SME suppliers for Penflex and RCH (Hugin Cash Registers); and, ● Develop technical specifications and requests for quotations (RFQs) with Penflex and RCH.
Linking SMEs with FFs ● Continue broad outreach, intake additional SMEs, and build database; ● Refine SME screening process based on first visits and audits; ● Identify SMEs from the database or from other sources that can serve specific FF requirements, based on identified product needs; ● Develop and sign agreements/MOUs with SMEs qualified to serve FFs and project requirements; ● Screen and audit SMEs that match; ● Conduct gap analysis for participating SMEs based on customer specifications and specific requirements; ● Design and establish upgrade plans and participate in building competence of potential SME suppliers; ● Familiarize potential SME suppliers with FF contracting requirements and expectations; and, ● Learn lessons to refine matchmaking and linkage processes to be systemic and scalable.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 14
Outreach, Communications, and Events ● Establish comprehensive events calendar for balance of Year 1; and, ● Plan Supplier Days in Hanoi, Da Nang, HCMC in conjunction with AmCham.
Baseline Assessment ● Finalize team configuration, develop scopes of work, and recruit. III. Progress related to Monitoring, Evaluation, and Learning During the first quarter, USAID LinkSME developed indicators, targets, and performance indicator reference sheets (PIRS) and submitted a draft AMEL Plan to USAID. The AMEL Plan included details for each indicator such as definition, target, frequency of reporting, and disaggregation. This section covers status of the development of AMEL Plan as well as the table of indicators.
A. Development of AMEL Plan and Status On October 4, 2018 (Day 30 after contract award), IESC submitted the draft AMEL Plan, which covered ten indicators: seven custom indicators and three standard indicators. The draft AMEL Plan was submitted to USAID on October 4, 2018. Through discussion, USAID agreed to eliminate a custom indicator “Value of Production of Assisted Firms” as it was redundant with the standard indicator “USD Sales of Firms Receiving USG-Funded Assistance.”
The revised AMEL Plan was resubmitted on November 27, 2018 with a set of nine indicators. However, the indicator of “Key Characteristics of SME Growth-Ready Firms Identified” was determined as a qualitative output lacking a clear measurement unit and indicator result. After discussion with USAID, the project submitted a newly revised table of indicators for review, which included the details of this milestone within the AMEL Plan, but removed it from the final indicator table. After getting USAID’s response, the project will re-submit the revised AMEL Plan for approval early in Q2.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 15 B. Table of Indicators with Baseline, Y1 Targets, Y1 Achieved to Date, LoP Target
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 16 C. Analysis of Indicators as Applicable At this time, no further analysis of the team’s progress against indicators is relevant given it is the first quarter of the project’s first year. III. Project Management During this past quarter, USAID LinkSME completed the following critical project management actions: ● Mobilized startup team; ● Developed, submitted, and received approval for the first USAID LinkSME Annual Work Plan; ● Developed and submitted the AMEL Plan and responded to USAID and counterpart feedback. Final approval remains pending; ● Onboarded project staff, including two international staff members and eleven local staff members2; Most recent additions include Hanoi: Monitoring, Evaluation, and Learning (MEL) Officer; Senior Communications and Outreach Manager; Human Resource (HR) Manager and Translator, and HCMC: Events and Training Coordinator; SME Linkage Manager; and, the SME Linkage Officer; ● Established temporary offices, while identifying long-term offices in Hanoi and HCMC; working from temporary spaces as of end Y1Q1 (Pullman Hotel Hanoi/WeWork HCMC); ● Set up Information Technology (IT) system including bilingual online SME intake system and CRM database to register partner firms; ● Established financial management systems and trained project staff on IESC policy, practices, and procedures; ● Advanced project approval from the Government of Vietnam; and, ● Drafted and completed IESC project management manuals, including Field Office Employee Manual (FOEM); Operations Manual; Finance Manual, and Security Manual. As part of project implementation, the project field team has made recommendations to revise some operational procedures to further streamline processes based on current practices in Vietnam. The Operations manual is under review considering those recommendations and will be finalized when all-staff trainings are delivered in February 2019 by home-office program manager.
A. Mobilization To establish local offices, onboard the initial round of project personnel, establish local subcontracts, and develop Year 1 Annual Work Plan and AMEL Plan, IESC mobilized Home- office Startup Specialist Elizabeth Issac on September 5, 2018, along with Associate Vice President Chad Ford. They were joined by IESC Trade Specialist David Feige on September 9, 2018, and IESC MEL Director Angela Wasson on September 23, 2018.
2 One of the local hires is an international local consultant from subcontractor. Since the position is considered a local hire, that employee is included the local hire count.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 17 Long-term personnel, Deputy Project Director Duong Lien and Foreign Firm Linkage Director, Frank Weiand, started on September 5, 2018. Project Director, Ron Ashkin, was mobilized on September 23, 2018. Additional long-term staff members Director of Finance and Administration Nguyen Thi Thanh Loc and Monitoring, Evaluation, and Learning Manager Le Nguyen Anh joined at this time as well. These staff members along with technical specialists from KPMG Vietnam and Taj Media participated in the Year 1 work plan workshop aimed at transferring the proposal design to the USAID LinkSME project leadership. USAID organized a Mission welcome and overview as well as participated in several of the work plan development activities. The Year 1 AWP was submitted on October 4, 2018; a revision was submitted on October 31 following feedback from USAID and approved by the COR on December 28, 2018.
After the deliverable submissions in early October, IESC home-office recruiter Alison Tyler, supported a recruitment push for the next tranche of project staff. This was not originally planned but completed based upon the recommendation of USAID to help onboard some of the local technical specialists. IESC planned for program manager Sadia Khawar to follow as part of startup management support, but unfortunately her business visa application was rejected by the Vietnam Embassy in the United States (U.S.). While Ms. Khawar can work in Sri Lanka and Cambodia on behalf of IESC without any host-country immigration objections, the GoV does not recognize the travel papers she has from the U.S. in temporary lieu of an American passport. After several unsuccessful attempts to work with the Embassy, the program manager’s startup trip was postponed until Quarter 02 and shall be completed after a change in HO staffing assignments is completed at the start of February.
Finally, in the second half of October, IESC home-office Accountant Farmeenullah Shinwari completed an assignment to establish IESC general ledger accounts with USAID LinkSME’s field office accountant. He provided training on established IESC financial management policy, procedures, and practices. Establishing a project bank account has proven difficult while the project registration and IESC International Non-Governmental Organization (INGO) registration are pending.
B. Project Registration, Organizational Registration, and Local Offices The GVN requires that all Official Development Assistance (ODA) projects receive approval prior to operating officially. USAID/Vietnam assigns implementing partners the responsibility to register their projects with the GVN counterpart ministry or agency after award. For USAID LinkSME, the OOG was the identified governing body, with project ownership within OOG assumed jointly by the APCA and the Department for Enterprise Reform. USAID facilitated an introduction on September 11, 2018; collaboration on technical agreement, document drafting, constituent buy-in, and approval has been ongoing since that date. The OOG started to seek concurrence from relevant ministries in advance of final approval by the Prime Minister’s office. During this quarter, the project as provided the counterpart the following documents:
● USAID LinkSME Technical Implementation Plan for Phase 1 (translated), September 2018; ● IESC Sector Analysis Selection and proposed MEL Plan (translated), September 2018 ● AWP (translated) October 2018; ● AMEL plan: submitted Oct 4; Oct 30; Nov 27, 2019;
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 18 ● USAID Letter to confirm commitment to OOG November 2018; ● IESC not-for-profit description November 2018; ● Report on the Proposed Policy for Implementing the Technical Assistance Project on Linkages for Small and Medium Enterprises November 23, 2018; ● OOG letter and package to Ministry of Planning and Investment December 21, 2018; and, ● Various responses to questions via email and phone call follow up from September to December 2018.
The OOG began seeking consent from relevant ministries in advance of presenting the project for signature with the Prime Minister’s office during the end of the quarter. USAID LinkSME Deputy Project Director Ms. Duong Lien is the point person for LinkSME in this process.
IESC’s organizational registration as an INGO with The People's Aid Coordinating Committee (PACCOM) was prepared during Quarter 1. Original documents are undergoing authentication and legalization for submission of the full documentation package early in Q2.
Local offices were established in both Hanoi and HCMC. Hanoi established a temporary office with space available until June 2019, if necessary, to allow time to formalize GVN counterpart and locate the permanent office convenient to the counterpart and USAID. Several permanent locations were evaluated and priced during this quarter to complete a market assessment. The HCMC office originally planned as a sublet with KPMG; however, the space was not available. The team chose E-Town in District 4, which houses the WeWork temporary office space as well as the selected permanent office, which will be ready for occupancy in Q2.
C. Management Approach and Structure The project team staffing, onboarding schedule, and a description of his or her respective role is included in the USAID LinkSME Personnel Organizational Chart below. A full-sized Personnel Organizational Chart is located in the LinkSME_FY19_Q1_QPR folder titled, “USAID LinkSME_Personnel Organizational Chart”
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 19
D. IESC Home-office Oversight and Support The team conducts field office/home office calls with the Director of Finance and Administration to review administrative priorities. Biweekly check-ins with senior leadership. The home-office manager was to complete an assignment in October 2018, but due to a rejected business visa application the assignment was postponed until the Q2.
E. Communications and Outreach D1. Branding Implementation Plan and Marking Plan A Branding Implementation Plan and Marking Plan for USAID LinkSME was approved by USAID on October 4, 2018. The document describes in detail how USAID LinkSME will be positioned and communicated to beneficiaries, partners, stakeholders and Vietnamese public.
E2. Communications Materials Production In Q1, USAID LinkSME produced a factsheet and a tri-fold brochure in both English and Vietnamese languages. The factsheet was published on the USAID website to provide the public with an overview about LinkSME and its expected results. The tri-fold was used as a tool for
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 20 outreach activities when LinkSME engages with foreign firms and SMEs. The brochure helps them to understand about LinkSME project and what benefits they can get from participating in the project. It also provides a link for foreign firms and SMEs to sign up for project information.
E3. Outreach Activities Because USAID LinkSME has not yet received official project approval from our Government partners, IESC cannot yet promote USAID LinkSME through social media and mass media. Alternatively, we have utilized outreach to communicate with project’s private sector stakeholders and beneficiaries including foreign firms and SMEs. USAID LinkSME presented at the following events and workshops to introduce the USAID LinkSME project:
● The American Chamber of Commerce (AmCham) Vietnam’s Supplier Day event in Ho Chi Minh City on October 4, 2018; ● The consultation workshop on the electronics value chain sponsored by the USAID Governance for Inclusive Growth (GIG) project in Ho Chi Minh City on October 4, 2018; ● The Vietnam Supporting Industries Forum 2018 - a part of the Metalex Vietnam trade fair on October 13, 2018; ● The annual 2018 Vietnam Real Estate Symposium in Ho Chi Minh City on November 8, 2018; ● The annual meeting of the Vietnam Mechanical Association 2018, "MECHANICAL SECTOR FOR AGRICULTURE DEVELOPMENT" on November 16, 2018; ● The Vietnam Chamber of Commerce and Industry’s (VCCI’s) Vietnam Export Forum 2018 in Ho Chi Minh City on November 28, 2018; ● The Vietnam Electronics Industries Association (VEIA) Conference for SMEs to Participate into the Global Production Chain on December 7, 2018; ● The 2018 Vietnam International Machinery Fair/Vietnam Supporting Industries Fair (VIMAF/VSIF) in Ho Chi Minh City on December 13, 2018.
Additionally, U.S. Ambassador to Vietnam Daniel J. Kritenbrink introduced USAID LinkSME at the USABC workshop in Hai Phong on Elevating Small and Medium Businesses into Industrial Revolution 4.0 and Inclusive Global Value Chains on November 21, 2018, stating:
“The United States is committed to working with Vietnam to help Vietnamese SMEs adapt to the modern global economy. USAID recently awarded the new five-year, $22 million Linkages for Small and Medium Enterprises (LinkSME) project to International Executive Service Corps. LinkSME aims to improve and expand the supplier-buyer relationships between Vietnamese and foreign firms. This project will raise productivity and increase Vietnam’s capacity to supply products to larger companies both inside and outside Vietnam. Foreign firms will reap efficiency benefits from increased local sourcing. LinkSME will help Vietnamese entrepreneurs up and down the value chain pursue new opportunities and provide new jobs for their communities.”
To coordinate with Vietnam’s SME Donor/Implementer community, on October 18, 2018, USAID LinkSME organized a donor/implementer roundtable on Theories of Change for SME
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 21 Development in close collaboration with USAID’s global Trade and Competitiveness Activity (TCA). Seventeen international organizations participated at the roundtable.
F. Reporting During this reporting quarter, the following contract deliverables were submitted: 1. Year 1 Annual Work Plan, submitted on October 5, 2018. Approved on December 28, 2018; 2. AMEL Plan, submitted on October 05, 2018; 3. Branding and Marking Plan, submitted on September 19, 2018. Approved on October 15, 2018; 4. Quarterly Accrual Report submitted on December 18, 2018; and, 5. Approval request for SME Advisory Group, submitted on December 05, 2018. Approved on December 19, 2018.
G. Next Quarter Project Management Support IESC Home Office Senior Program Manager Courtney McNamara is expected to visit Hanoi during Quarter 2 after the Tet holidays to support final stages of startup, which include office systems review and training, permanent office set up, subcontract management support, and budget forward planning for remaining half of Year 1. The Bimonthly check in will occur in January and in March 2019 between IESC and USAID/Vietnam.
The formal, public project launch will be held after project approval from the GVN is completed. Presently, we are planning for a late Q2 or early Q3 launch. IV. Challenges and Proposed Solutions The primary challenge faced by USAID LinkSME in Y1Q1 relates to the project approval and registration process. The GVN partner proposed at the time of project scoping was originally the Ministry of Planning and Investment (MPI); however, at time of contract award it was determined that the OOG would be a more suitable partner. USAID and the project subsequently engaged OOG in negotiations, with the objective of having the project officially approved by the GVN early in 2019. The process has been moving forward positively; with the challenge that USAID LinkSME is not in control of the time frame to ultimate approval; that constrains the project’s ability to engage with GVN technical partners or promote itself through public channels.
The solution is to work closely with OOG to complete the necessary documents in as short a time frame as possible and obtain approval thereof. As of the end of Y1Q1, USAID LinkSME and OOG had agreed upon a technical proposal outline which frames the project’s scope of work in a manner acceptable to the GVN. The Deputy Project Director continues to lead this effort. At the end of Y1Q1, undertook a recruit for a short-term consultant familiar with the ODA project approval process to support her efforts.
A second challenge (which could be considered a “good problem”) is that demand from FFs could exceed our capacity to serve them. There has been robust demand from FFs from the outset of the project, and it is premature to have learned evidence-based lessons at this stage as to how much level of effort (LOE) it takes to create a linkage or how long the process will take.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 22
Beyond continuous improvement of our TA processes to be as effective and efficient as possible, there are two potential alternatives should this problem indeed occur: first, we could set up a queueing and/or prioritization system for FFs should the demand become overwhelming. Second, we can consider restructuring the initial organization chart to add more linkage managers by converting contemplated STTA to LTTA (long-term technical assistance).
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 23 Annex A – Updated Implementation Plan
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 24 Responsible Benchmark(s), Milestone(s), or S O N D Ja F M A MJuJlAuS Team Member Others Status Notes Deliverable(s) Lead Pre-Award
A. Project Start-Up Activities 1 Rapid Mobilization 1.1 Start Project registration, identify office space, procure materials Beth Lien and Loc Office lease, registration In process HO Mngr in Feb/Mar to help finalize 1.2 Finalize and sign contract with KPMG and TAJ Media Chad Signed contracts In process KPMG completed. Taj Media exp Q2. 1.3 Mobilize all personnel Chad IESC HO Offer letters and contracts On track Key personnel mobilized as promised 1.4 Set-up program management systems Chad Ron, Lien Manuals On track Finalized or in final draft form. 1.5 Create environmental manual and train staff Env. Consultant Lien Environmental manual Complete Included in the AWP 1.6 Complete year one work plan & validate with USAID Chad Local team Year 1 Work Plan (WP) Complete Approved 12/28/18 1.7 Respond to USAID feedback on Yr 1 WP within 15 days Ron Final approved WP Complete 1.8 Develop survey form for post-event feedback Frank In process 1.9 Establish automatic response email Ron Lien Complete 2 Activity Launch 2.1 Determine date, initial agenda, speakers, and venue with USAID Ron AOR Mtg Notes Deferred 2.2 Send "save the date" announcements to key partners Lien Email invite Deferred Pending official project registration by 2.3 Prepare comms tools approved by USAID Docs (invite, banner, COM Docs Comms materials Deferred GVN. Aiming for April planning with May 2.4 Finalize agenda, talking points, and presentation Ron Agenda, TP, and PwrPnt Deferred launch. 2.5 Conduct launch Comms w/ USAID input Event products/pictures Deferred B. Technical Activities (TAs) 1 1. Establishing One-to-One Linkages Between FFs and SMEs 1.1 Additional Foreign Firm Identification Frank FFLM Foreign Firm list 1.11 Outreach through Chambers of Commerce Frank FFLM Foreign Firm sub-list On track 1.12 Outreach through industrial zones i.e. HEPZA Frank FFLM Foreign Firm sub-list On track 1.13 Outreach through VEIA (electronics association) Frank FFLM Foreign Firm sub-list On track 1.14 Outreach to GOVN Agencies or Ministries (MPI and MoIT) Frank FFLM In process 1.15 KPMG Target Long List Phuc KPMG team In process 1.16 Establish online outlets (USAID, Chamber/Ass'n websites) Frank COM Deferred Pending project approval by GVN 1.2 Development of FF Request for Proposals Frank Completed RFP 1.21 Establish General Requirements for FF Partners Frank Ron and David Annex to AWP Complete 1.22 Sign MOU with FFs (3-5 by December) Frank MOU 3-5 in Dec; Complete 1.23 Develop supplier specifications with FF Frank LMs, FLMs SME selection criteria In process 1.24 Review success rate of MOU partners Ron Frank and Anh Deferred Too early 1.3 SME Outreach and Two-Stage Shortlisting Lien LMs Database of SMEs On track 1.31 Determine/Select database for SME intake forms Lien Frank, Luke, Creation of database Complete Continuous improvement 1.32 Develop SME general screening criteria Lien Frank, David, Annex to AWP Complete 1.33 Call for SME apps through associations, IZs, direct outreach Lien Taj Media Circulation of applications In process 1.34 General screening of SMEs for inclusion in CRM system Lien LM In process 1.35 Conduct call to SMEs specific to FF requirements Lien LM SME applications received On track First FF requirements established 1.36 Screen applications using criteria established with FF in 1.22 Frank FLMs Shortlisted list of SMEs On track 1.4 Connect Short-listed SMEs to FFs Lien LM Final SME proposals Not applicable Future 1.5 Final Selection of SME Suppliers by FFs Frank Signed FF-SME contract Not applicable Future 1.51 Provide briefing with selected SMEs on key learnings Lien LM Key learnings report Not applicable Future 1.52 Provide briefing with SMEs not selected on key learnings Lien LM Key learnings report Not applicable Future 1.6 Technical Assistance to SME Suppliers (as necessary) Lien LM Signed FF-SME contract Not applicable Future 1.61 Determine supplier upgrade req's in conjunction with FFs Frank & Lien List of required upgrades Not applicable Future 1.62 Establish pool of legal advisors Loc Lien, Frank, Pool of legal advisors est'd In process Through KPMG 1.63 Deliver "light touch" technical assistance, if needed Lien Completed tech assistance Not applicable Future 2 2. Supplier Days 2.1 Hold HCMC AmCham sponsored Supplier Day Frank Lien Training materials/attendee list In process 2.11 Sign MOU with AmCham Frank Lien MOU w/AmCham Complete 2.12 Sign MOUs with other participating Chambers Frank Lien MOUs with other Chambers On track 2.13 Determine date and venue for each event Frank Lien Date and venue On track Hanoi April 25, 2019 Responsible Benchmark(s), Milestone(s), or S O N D Ja F M A MJuJlAuS Team Member Others Status Notes Deliverable(s) Lead Pre-Award
2.14 Publicize each event widely through SME and FF outlets COM Taj Media List of outlets Not applicable Future 2.15 Hold events Frank Lien Participant list On track AmCham leading 2.2 Hold sector-specific supplier days in Hanoi, HCMC Frank Training materials/attendee list 2.21 Sign MOU with VEIA,VAMI, and other electronic/metal events Frank Copy of MOU On track MOUs with HAMEE, Dong-A 2.22 Determine date, venue, and agenda for event Frank Date, venue, final agenda On track Starting Q2 2.23 Publicize widely through SME and FF outlets Lien and Frank List of outlets Not applicable Future 2.24 Plan and hold Supplier Day event Frank Taj Media Participant list, Presentations Not applicable Future 2.25 Follow up with SME and FFs that demonstrated interest Frank & Lien List of interested FFs, SMEs Not applicable Future 2.3 Pre-Supplier Day Training Training materials In process First event in Q2 2.31 Determine curriculum Lien Frank Completed curriculum In process First event in Q3 2.32 Select a venue and trainers Lien TEC Venue and trainer selection In process First event in Q4 2.33 Widely publicize trainings Lien COM List of outlets In process First event in Q5 2.34 Hold trainings TEC Lien, Taj Media Survey/evaluation Not applicable Future 3 3. Communication and Outreach 3.1 Project launch COM TAJ Media Deferred Pending project approval by GVN 3.2 Share success stories COM TAJ Media Edited success stories Deferred Pending project approval by GVN 3.21 Identify key press outlets COM TAJ Media List of press outlets Deferred Pending project approval by GVN 3.22 Identify key success stories COM TAJ Media List of success stories Not applicable Future 3.33 Write up success stories COM TAJ Media Written success stories Not applicable Future 3.3 Convene meetings with partners to share learning experiences COM TAJ Media Partner meetings Not applicable Future 3.4 Other Outreach Events COM TAJ Media On track 3.41 Vietnam Supporting Industries Forum Ron Agenda Complete 3.42 Metalex Event (HCMC) Ron Complete 3.43 Outreach to collaborating orgs to ID additional events Ron On track 3.5 Provide content to USAID social media and online outlets COM Docs On track Weekly bullets 4 4. SME Advisory Group 4.1 Scope and member profile development Ron David F. Scope On track 4.2 Propose SME Advisory Group Composition to USAID Ron Lien Proposal to USAID Complete 4.3 Assemble SME Advisory Group Ron Lien SME Advisory Group formed Complete 4.4 Convene SME Advisory Group quarterly Ron Lien, Frank, Meeting agendas Not applicable Future 4.5 Informal Consultations with key members (ongoing) Ron Lien, Frank Meeting notes, follow-up items Deferred First meeting in Q2 5. Baseline Assessments 5.1 Establish specific data/sectors to be assessed through baseline Ron List of sectors/data needs Not applicable Per contract, due 180 days after AMEL 5.2 Identify consultant(s) to conduct baseline assessment Ron Consultant CV Not applicable Plan is approved. This will most likely 5.3 Conduct baseline assessment Consultant TBD Draft baseline assessment Not applicable be due now July 5, 2019 with the team 5.4 Report results to USAID Ron Final baseline assessment Not applicable fielded in May/June 2019 5 6. Sector Assessments 6.1 Establish High-Level Sector Assessments to Develop Shortlist STTA Team Committee IV Sector shortlist Not applicable Future 6.2 Recruit Sector Specialists STTA Team List of sector specialists Not applicable Future 6.3 Conduct sector assessments in consultation with OGG STTA Sector Committee IV Sector assessments Not applicable Future 6.4 Determine five sectors for Phase 2 activities STTA Sector Five selected sectors Not applicable Future 6.5 Develop roadmaps for all five sectors STTA Sector Roadmaps for five sectors Not applicable Future C. Learning Activities 1. Phase 1 Monitoring, Evaluation, and Learning Start-Up 1.1 Complete and submit draft MEL Plan MELM HO MEL MEL Plan draft Complete 1.2 Finalize MEL plan with USAID feedback; Initiate MEL system MELM HO MEL Approved MEL Plan In process Awaiting USAID approval 2. Learning from Transactions 2.1 Hold learning-focused staff meetings weekly Ron Lien, MELM/O Information sharing; minutes On track 2.2 Hold internal "pause and reflect" sessions quarterly Ron Lien, MELM/O Successes and challenges On track 2.3 Extract "critical success factors" from FF/SME quarterly surveys Ron Lien, MELM/O Adapted interventions In process Done internally D. Administrative Activities Responsible Benchmark(s), Milestone(s), or S O N D Ja F M A MJuJlAuS Team Member Others Status Notes Deliverable(s) Lead Pre-Award
1. Year Two Annual Work Plan 1.1 Prepare year 2 budget and activity planning forms Ron HO Year 2 budget, activity plans Not applicable Future 1.2 Field HO AVP or manager to support year 2 work plan HO SOW, Trip report Not applicable Future 1.3 Meet with other donors, partners, client firms Ron Chad Meeting notes, follow-up items Not applicable Future 1.4 Respond to USAID feedback w/in 15 days, Submit Final Yr2 WP Ron Chad Year 2 Work Plan Not applicable Future 2. Reporting 2.1 Initiate & submit combined Quarterly Progress and Financial Report Ron Quarterly report On track 2.2 Submit all reports, analyses, policy recs., comparative studies, Ron All technical reports/materials Not applicable None in Q1 2.3 Submit summaries of all reports in Vietnamese, including key Ron All technical reports/materials Not applicable None in Q1 findings 2.4 Initiate & submit Annual Progress report Ron Annual Report Not applicable Future 3. Implementation of Monitoring, Evaluation, and Learning 3.1 Work w/ HO MEL director to create database and data collection MEL database and data Anh HO MEL Complete tools based on approved MEL Plan collection tools Tested and finalized data 3.2 Test and fine-tune data collection tools and methods Anh MEL Officers On track collection tools 3.3 Meet with PD ahead of all staff quarterly reflection meetings to Anh Ron Meeting notes, follow-up items On track review trends and progress towards targets 3.4 Collect data for quarterly/annual reports Anh Data, Quarterly/Annual Report In process 3.5 Submit updated performance reporting table to PD and HO for Anh In process inclusion in quarterly and annual reports 4. Communications Plan 4.1 Draft, finalize, submit Branding Implementation & Marking Plan COM HO Approved B&M Plan Complete 4.2 Develop Communications Plan and establish social media accounts COM HO Comms plan, Online accounts In process 5. Project Management 5.1 Hold regular all staff administration and technical meetings Ron Agenda & follow-up items On track 5.2 Conduct weekly teleconference with home office Ron Lien, IESC HO Agenda & follow-up items On track As required 5.3 Produce HO to FO weekly communique Beth Weekly communique Complete 5.4 Conduct regular senior leadership meetings with COR Ron Lien, COR Agenda and meeting notes On track 5.5 Hold regular administrative meeting with KPMG & TAJ Media Ron Lien Agenda and meeting notes In process 5.6 Hold bi-annual knowledge sharing meetings with USAID projects Ron TBD Agenda and meeting notes In process Regular meetings with TFP held
6.1 Complete finance and operations assessment Ron STTA, Lien Finance & Ops Assessment Not applicable Future 6.2 Respond to the assessment Ron Lien Action plan matrix Not applicableFuture Annex C – Summary of Electronic Attachments
The following list includes names of reports, success stories, and other relevant documents prepared during the quarter, which are submitted separately electronically:
1. USAID LinkSME Project Brochure, English 2. USAID LinkSME Project Brochure, Vietnamese 3. USAID LinkSME Fact Sheet, English, September 2018 4. USAID LinkSME Fact Sheet, Vietnamese, September 2018 5. USAID LinkSME Project Introduction for Supplier Days, September 2018, English 6. USAID LinkSME Project Introduction for Supplier Days, September 2018, English and Vietnamese 7. USAID LinkSME Project Presentation for VIMAF and WSIF Conference, December 2018 8. USAID LinkSME Project Presentation for VCCI Export Forum, December 2018
For ease of reference, IESC has included the final versions in the google shared folder for USAID.
USAID LinkSME Quarterly Progress Report Yr1 QPR 01 Page 25
LIÊN KẾT DOANH NGHIỆP VỪA VÀ NHỎ (LINKSME) 9/2018 – 9/2023 | ĐỐI TÁC THỰC HIỆN: IESC | NGÂN SÁCH DỰ KIẾN: 22,1 triệu đô la
Dự án Liên kết doanh nghiệp vừa và nhỏ (LinkSME) của USAID có mục tiêu củng cố mối quan hệ nhà cung cấp - bên mua giữa các doanh nghiệp vừa và nhỏ Việt Nam (DNVVN) và các công ty đa quốc gia tại Việt Nam nhằm giúp các doanh nghiệp trong nước tham gia vào chuỗi giá trị toàn cầu. LinkSME sẽ cải thiện môi trường kinh doanh thông qua việc giúp các công ty đa quốc gia tại Việt Nam giảm chi phí khi sử dụng nguồn cung trong nước đồng thời là cơ hội lớn để phát triển lĩnh vực DNVVN Việt Nam và xây dựng tầng lớp trung lưu – những người tiêu dùng các sản phẩm của Mỹ. Dự án cũng giúp Việt Nam
cải thiện năng lực cạnh tranh trong khu vực bằng cách làm cho môi trường đầu tư của Việt Nam trở nên hấp dẫn và dễ dự đoán hơn.
TĂNG CƯỜNG CÁC LIÊN KẾT KINH DOANH GIAI ĐOẠN 1: Trong hai năm đầu tiên, LinkSME sẽ tạo thuận lợi cho hoạt động giao dịch giữa các DNVVN Việt Nam đã sẵn sàng kết nối với các công ty nước ngoài tại Việt Nam trong lĩnh vực điện tử và kim loại. Giai đoạn 1 tập trung đánh giá, thiết lập bằng chứng và củng cố mối quan hệ giữa các bên liên quan nhằm hiểu rõ những khó khăn chính mà các doanh nghiệp Việt Nam đang gặp phải khi cung cấp cho các công ty nước ngoài.
GIAI ĐOẠN 2: Bắt đầu từ tháng 9/2020, LinkSME sẽ tập trung nhân rộng và tăng quy mô các giao dịch INSTITUTION : BROOKINGS NH thí điểm Giai đoạn 1 trong lĩnh vực điện tử, kim loại và ba lĩnh vực bổ sung sẽ được quyết định vào cuối Ả Giai đoạn 1. Giai đoạn 2 tiếp tục chuẩn hóa những bài học kinh nghiệm nhằm hiểu rõ hơn những khó khăn mà doanh nghiệp Việt Nam đang gặp phải khi muốn kết nối thành công với các công ty nước ngoài.
GIAI ĐOẠN 3: Trong năm cuối cùng, LinkSME sẽ áp dụng những bài học kinh nghiệm rút ra từ Giai đoạn 1 và 2 nhằm giảm thiểu những rào cản đang hạn chế khả năng tăng trưởng của các DNVVN đồng thời vẫn tiếp tục tạo điều kiện cho các giao dịch giữa DNVVN và các công ty nước ngoài trong 5 lĩnh vực. Từ chỗ hiểu rõ những khó khăn ở cấp quốc gia và cấp doanh nghiệp trong việc phát triển mối liên kết DNVVN - công ty nước ngoài, các can thiệp của Giai đoạn 3 sẽ giúp thể chế hóa những cải cách quan trọng ngoài 5 lĩnh vực đã chọn.
KẾT QUẢ DỰ KIẾN Mục tiêu của USAID là đạt được những kết quả như sau trong Giai đoạn 1 và nhân rộng trong Giai đoạn 2: (i) Liên kết thành công các doanh nghiệp Việt Nam và công ty nước ngoài trong các lĩnh vực mục tiêu và Nhân rộng được những liên kết bổ sung ngoài các lĩnh vực mục tiêu; (ii) Tăng giá trị, khối lượng và hiệu quả sản xuất của những doanh nghiệp được hỗ trợ; và (iii) Xác định được những đặc điểm chính của các doanh nghiệp sẵn sàng kết nối.
Tháng 9/2018 ĐỂ BIẾT THÊM THÔNG TIN: https://www.usaid.gov/vietnam
USAID LINKAGES FOR SMALL AND MEDIUM ENTERPRISES (LINKSME) SEPTEMBER 2018 – SEPTEMBER 2023 | IESC | PLANNED BUDGET: $22.1 million
USAID Linkages for Small and Medium Enterprises (LinkSME) aims to strengthen the supplier-buyer relationships between Vietnamese small and medium enterprises (SMEs) and multinationals located in Vietnam to help local firms participate in global value chains. USAID LinkSME will improve the business environment by lowering costs for multinationals located in Vietnam to source locally while
representing a huge opportunity to grow Vietnam’s SME sector and build its middle class, major consumers of American products. The project is also helping to improve Vietnam’s regional competitiveness, by making it a more attractive and predictable investment climate.
STRENGTHENING BUSINESS LINKAGES PHASE 1: During the first two years of the project, USAID LinkSME will facilitate transactions between linkage-ready Vietnamese SMEs and foreign firms located in Vietnam in the electronics and metal sectors. Phase 1 focuses on learning, developing evidence, and strengthening relationships among relevant stakeholders to better understand the major constraints that Vietnamese firms face when supplying to foreign firms.
BROOKINGS PHOTO: INSTITUTION PHASE 2: Beginning in September 2020, USAID LinkSME will focus on replication and scaling of Phase 1 pilot transactions within the electronics and metal sectors, and three additional sectors to be determined at the end of Phase 1. Phase 2 will continually refine lessons learned to better understand the constraints faced by Vietnamese enterprises to successfully engage with foreign firms.
PHASE 3: In the last year of the project, USAID LinkSME will apply lessons learned from Phases 1 and 2 to reduce major barriers limiting SME growth across Vietnam while continuing to facilitate SME- foreign firm transactions within the five sectors. By understanding national-level and firm-level constraints to SME-foreign firm linkage development, Phase 3 interventions will help institutionalize key reforms beyond the five selected sectors.
EXPECTED RESULTS USAID aims to achieve the following results in Phase 1, which will be scaled and replicated in Phase 2: (i) Linkages between Vietnamese enterprises and foreign firms in targeted sectors completed and additional linkages outside of target sectors replicated; (ii) Value, volume, and efficiency of production among assisted firms increased; and (iii) Key characteristics of linkage-ready enterprises identified.
September 2018 FOR MORE INFORMATION: https://www.usaid.gov/vietnam Chúng tôi quan tâm và Dự án Kết nối muốn tham gia LinkSME Dự án Kết nối Doanh nghiệp Nhỏ và Vừa Doanh nghiệp Nhỏ (LinkSME) của USAID Thông tin chung và Vừa (LinkSME) Tên công ty: Nhân sự Dự án Thông tin Liên lạc của USAID Email: [email protected]
Chủ doanh nghiệp: Nam Nữ Ông Ronald Ashkin Giám đốc Dự án Chúng tôi là: Công ty Doanh nghiệp vừa nước ngoài và nhỏ Việt Nam Điện thoại: +84 (0) 35 802 1163 Email: [email protected] rg Địa chỉ: Bà Dương Liên
AM N
Phó Giám đốc Dự án và H N I D
Giám đốc kết nối các DNNVV G A N Điện thoại: +84 (0)913 213 417 H O Tỉnh: Email: [email protected] Người liên lạc: Ông Frank Weiand Chức vụ: Giám đốc kết nối các DNNN Điện thoại: +84 (0)702 208 132 Số điện thoại: Email: [email protected] Email:
E
Số lượng nhân viên: I T R U O T
Sản phẩm:
Đăng ký nhận thông tin dự án tại http://bit.ly/LinkSME1 Các ngành trong Đối tác của chúng tôi Giai đoạn 1 là ai Điện tử • Các DNNVV (là các công ty Việt Nam sử • Là lĩnh vực lớn nhất và tăng trưởng nhanh dụng dưới 500 lao động) trong năm lĩnh vực nhất ở Việt Nam được lựa chọn đã sẵn sàng kết nối • Việt Nam là nước xuất khẩu hàng điện tử lớn • Các công ty nước ngoài hoạt động ở Việt thứ ba trong khu vực ASEAN và đứng thứ 12 Nam, có xuất khẩu hàng hóa từ Việt Nam trên thế giới • Các cơ quan nhà nước ở trung ương và địa • Hầu hết các nhà cung ứng của Việt Nam chỉ phương Thông tin về sản xuất các bộ phận đơn lẻ như bao bì, phụ • Các Hiệp hội ngành nghề của Việt Nam Dự án LinkSME tùng, kim loại và dịch vụ hậu cần kho vận. • Các Phòng Tương mại USAID LinkSME là dự án 5 năm do USAID tài Kim khí (linh kiện và đầu vào) trợ, được thực hiện từ tháng 9/2018 đến tháng • Là ngành công nghiệp hỗ trợ có tính xuyên Chiến lược Hợp tác, 9/2023. Các mục tiêu cơ bản của Dự án gồm: suốt cung cấp đầu vào cho nhiều ngành công • Nâng cao năng lực tham gia các chuỗi giá trị Học tập và Thích ứng nghiệp khác nhau toàn cầu trong 5 lĩnh vực của các DNVVN Việt Nam • Công cụ máy móc là mặt hàng xuất khẩu của (CLA) Việt Nam có tốc độ tăng trưởng đứng thứ hai • Tăng cường khung liên kết kinh doanh giữa • Hợp tác: Thảo luận về những biện pháp có • Nhiều công ty nước ngoài muốn tìm nguồn các DNVVN và các công ty nước ngoài hiệu quả/không có hiệu quả, tăng cường sự cung ứng từ các nhà DNNVV trong nước. hiệp lực trong nhóm/với các bên liên quan Mục đích • Bao gồm các loại thiết bị như máy móc và bên. Tương tác và phát triển quan hệ đối USAID LinkSME sẽ tạo ra những thay đổi mang công cụ liên quan tới hiệu chỉnh các bộ phận tác với khu vực tư nhân. tính hệ thống trong mối quan hệ kinh doanh bằng kim loại, và đi kèm với vật tư tiêu hao, giữa các DNVVN của Việt Nam với các công ty phần mềm và dịch vụ. • Học tập: Hiểu được những lý do dẫn tới sự nước ngoài, qua đó tăng đáng kể về số lượng và hiệu quả/chưa hiệu quả, những lĩnh vực có chất lượng các mối liên kết kinh doanh giữa thể mở rộng, nhận rộng và cải tiến. DNVVN Việt Nam và các chuỗi giá trị toàn cầu. • Thích ứng: Điều chỉnh chiến lược và các Việc cải thiện và gia tăng các mối liên kết kinh hoạt động trên cơ sở các bài học đã rút ra doanh sẽ giúp các công ty tư nhân của Việt Nam và các dữ liệu/bằng chứng thu thập được để tạo thêm công ăn việc làm, nâng cao đời sống và tiếp tục cải thiện và đạt được kết quả đề ra. khuyến khích tinh thần đổi mới doanh nghiệp. Thông qua khoản tài trợ của USAID, USAID LinkSME sẽ hỗ trợ các doanh nghiệp Việt Nam hội nhập tốt hơn trong các chuỗi cung ứng toàn cầu với tính chất là các nhà cung ứng giá trị gia tăng và đổi mới sáng tạo. We are interested in USAID Linkages joining LinkSME USAID Linkages for for Small and General Infomation Small and Medium Medium Enterprises (LinkSME) Company Name: Project Personnel Enterprises Contact Information (LinkSME) Email: [email protected] Registered Business Owner: Male Female
We are a: Foreign firm Local SME Mr. Ronald Ashkin Project Director Phone: +84 (0) 35 802 1163 Company Address: Email: [email protected] rg
AM Ms. Duong Lien N H N I D
Deputy Project Director & G A N Province: SME Linkage Director H O Phone: +84 (0)913 213 417 Contact person: Email: [email protected] rg Title:
Phone: Mr. Frank Weiand Foreign Firm Linkage Director Email: Phone: +84 (0)702 208 132 Email: [email protected] Number of employees:
E I T R U O Products: T
Sign up for project information at http://bit.ly/LinkSME1 Phase 1 Sectors Who We Work With Electronics Linkage-ready small and medium enterprises (Vietnamese firms with Largest and fastest growing sector in less than 500 employees) in five Vietnam selected sectors Vietnam is the third largest electronics Foreign firms operating in and exporter in ASEAN and number 12th in the world exporting from Vietnam
Most Vietnamese suppliers produce single National and local level government entities About USAID LinkSME components such as packaging, spare parts, metal, and logistics services Vietnamese sector-specific USAID LinkSME is a five year USAID-funded associations project that will be implemented between Metals (parts and inputs) Chambers of Commerce September 2018 and September 2023. The Cross-cutting support sector that feeds into main project objectives are the following: a variety of industries
Enhance Vietnamese SMEs’ capacity to Machine tools is the second fastest growing Collaborating, Learning, participate in global value chains in five export from Vietnam sectors and Adapting (CLA) Strengthen the SME-foreign firm business Many foreign firms in Vietnam want to Strategy linkage framework source from current local SME Includes equipment such as machinery and Collaborate: Discuss what is and is Purpose tools dealing with the fabrication of metal not working and potential synergies within the team and amongst USAID LinkSME will catalyze systemic changes components, and the accompanying consumables, software, and services external stakeholders. Engage and in the business relationships between develop partnerships with the private Vietnamese small and medium enterprises sector. (SMEs) and foreign firms, significantly increasing the quantity and quality of linkages between Learn: Understand what is and is SMEs and global value chains. Improved and not working, areas for replication, increased business linkages will help Vietnam’s scaling up, and improvement. private firms generate jobs, improve livelihoods, and encourage entrepreneurial innovation. Through USAID funding, USAID Adapt: Adjust strategy and activities LinkSME will support Vietnamese based on lessons learned and data enterprises to better integrate as value- and evidence for continuous addition suppliers and innovators in global improvement and achievement of value chains. results. BROOKINGS BROOKINGS INSTITUTION
USAID LINKAGES FOR SMALL AND MEDIUM ENTERPRISES (LinkSME)
HOW TO CONNECT TO GLOBAL VALUE CHAINS
VIMAF and VSIF Conference 2018 Ho Chi Minh City December 13, 2018
9/20/201 USAID Linkages for Small and Medium Enterprises 1 Vietnam’s Challenge – Connecting SMEs to the Global Value Chain Small and Medium ■ 98 percent of total enterprises Enterprise ■ 63 percent of employment 1 (SME) ■ 45 percent of GDP Landscape
■ Foreign direct investment (FDI) in 2017: $30 billion Foreign Firms ■ FDI firms represent 70 percent of Vietnam’s exports (FFs) in 2 Vietnam ■ Key investors: South Korea, Japan, Singapore, Taiwan, U.S. ■ Most FFs co-locate with their foreign suppliers
SME Linkages ■ Only 21 percent of SMEs engage in FF supply chains 3 to Foreign ■ Why? Low technology adoption, low productivity, lack of Firms experience with FFs, insufficient standardization, inadequate skilled staff…
USAID Linkages for Small and Medium Enterprises Slide No. 2 A New USAID Project Addresses This Challenge
• USAID Linkages for Small and Medium Enterprises (LinkSME) • $22.1 million over five years (2018 – 2023) • Implemented by IESC with partners KPMG and Taj Media • Purpose: • Systemic changes in business relationships between Vietnamese small and medium-sized enterprises (SMEs) and foreign firms (FF) • Significant increases in the quantity and quality of linkages between Vietnamese SMEs and FFs • Objectives: 1. Strengthen the SME-foreign firm business linkage framework 2. Enhance Vietnamese SMEs’ capacity to participate in the global value chain in five sectors
Slide No. 3 Slide No. 3 Benefits for Participants
• Foreign Firms • Reduced cost of locating potential Vietnamese suppliers • Get connected with Vietnamese SMEs interested in joining global value chains and receive related supplier development support • Better information about suppliers’ product lines, capabilities, capacities and efficiency • Well prepared SME vendors understanding FF needs • SMEs • Connecting with foreign firms (FFs) interested in deepening their local supply chains • Access to FF procurements • Implementation support of FF specific requirements and specifications • Upgrading in some key areas
Slide No. 4 NHAN DAN ONLINE DAN NHAN
USAID Linkages for Small and Medium Enterprises Slide No. 5 Connecting to Global Value Chains: The First Step for SMEs
• Quality Understand • Quantity buyer • Timeliness requirements • Cost • Data (Both global trends and specific company needs) • Customer service • Standardization
USAID Linkages for Small and Medium Enterprises Slide No. 6 Connecting to Global Value Chains: Next Steps
Consider your • Compare them to buyer requirements capabilities
Identify, investigate • What are the differences between your and prioritize gaps capabilities and what buyers need? Upgrade within • Financial • Technology resource availability • Human Move quickly, one • Deal with high impact, easy to implement issues first, while addressing longer-term step at a time challenges
Every SME has • Get assistance from LinkSME to connect with different needs buyers and upgrade your capabilities
USAID Linkages for Small and Medium Enterprises Slide No. 7 Project Methodology
TRANSACTION ORIENTATION
▼ Facilitate transactions between SMEs and FFs in two initial sectors
▼ Focus on learning, developing evidence, and strengthening relationships
▼ Select three additional sectors for expansion
▼ Replicate pilot transactions into the three additional sectors
Initial Sectors: Electronics and Metals (components, parts, input supplies)
USAID Linkages for Small and Medium Enterprises Slide No. 8 Project Methodology
COLLABORATING, LEARNING, AND ADAPTING
▼ Refine lessons learned → Why were some transactions successful while others failed? → What were the barriers faced by SMEs?
▼ Apply lessons learned to reduce barriers to SME growth across Vietnam
▼ Develop policy recommendations to improve the SME business environment
Institutionalize key reforms
USAID Linkages for Small and Medium Enterprises Slide No. 9 Introducing LinkSME REPOSITORY KPMG
USAID Linkages for Small and Medium Enterprises Slide No. 10 Introducing the Project Director
• LinkSME Project Director Ron Ashkin: [email protected]
• Responsible for overall project performance • Based in Hanoi • International development economist • Educated at Harvard University and The Wharton School • 35 years experience in global exporting and private sector development consulting • Professional experience in more than 60 countries worldwide
Slide No. 11 Foreign Firms How Can We Participate? • Contact LinkSME Foreign Firm Linkage Component Director Frank Weiand: [email protected] Frank is here today 1. Discuss your Vietnam supply chain needs 2. Sign an MOU with LinkSME 3. Elaborate your requirements and specs 4. Develop requests for quotations (RFQs) 5. LinkSME will refer potential Vietnamese SME suppliers 6. Your firm will negotiate commercially with these potential suppliers 7. LinkSME will assist supplier
development until start of production Slide No. 12 SMEs How Can We Participate? • Contact LinkSME Deputy Project Director / SME Linkage Component Director Lien Duong: [email protected] Lien is here today 1. Discuss your products and capabilities 2. Register your interest online at http://bit.ly/LinkSME1 3. If in our focus sectors, a LinkSME Linkage Manager will visit your facility to assess your linkage readiness 4. LinkSME will match you to appropriate foreign firm RFQs and help you prepare 5. Your firm will negotiate commercially with these potential buyers 6. After nomination, a supplier
development plan will take place Slide No. 13 Register your interest online online at interest your Register LinkSME USAID: Thuy Nguyen, Contracting Officer’s Representative (COR) USAID Linkages for Small and Medium Enterprises Contact Information : Ron Ashkin, Project Director Frank Weiand, Foreign Firm Linkages Component Director Lien Duong, Deputy Project Director/SME Linkages Component Director Michael Trueblood, Director, Office of Economic Growth Governanceand [email protected] http://bit.ly/LinkSME [email protected] [email protected] [email protected] : [email protected] 1 Slide No. Slide 14 VIETNAMFLAVOR.COM BROOKINGS INSTITUTION BROOKINGS
USAID: DỰ ÁN KẾT NỐI DOANH NGHIỆP VỪA VÀ NHỎ VỚI CHUỖI CUNG ỨNG TOÀN CẦU
Phiên trình bày tại Ngày hội các nhà cung cấp, tổ chức bởi Amcham Thành phố Hồ Chí Minh 4/10 /2018
9/20/2018 USAID Linkages for Small and Medium Enterprises 1 PRESSE/GETTY IMAGES PRESSE/GETTY Các mục tiêu của USAID về - phát triển kinh tế
Mục tiêu phát triển quốc gia: Việt Nam tiếp tục DINH FRANCE ONG NAM/AGENCE chuyển đổi thành một đối tác có trách nhiệm và có sự tham gia của nhiều thành phần xã hội vào hoạt động phát triển kinh tế
Mục tiêu phát triển 1: Tăng cường quản lý công nhằm tăng trưởng bền vững và sâu rộng hơn
9/20/2018 USAID Linkages for Small and Medium Enterprises 2 Việt Nam là một trong những nền kinh tế phát triển nhanh nhất thế giới Tăng trưởng GDP Kết quả là, thu nhập bình quân đầu người tăng từ 250 đô la năm 1995 lên 2,170 đô la vào năm 2017, đưa Việt Nam vào nhóm các nước có thu nhập trung bình thấp
USAID Linkages for Small and Medium Enterprises 3 Trong tương lai, thách thức lớn nhất của nền kinh tế là thoát bẫy thu nhập trung bình
Cần phải nâng cao năng suất lao động … Nhưng cần làm như thế nào ?
USAID Linkages for Small and Medium Enterprises 4 USAID phát triển 2 dự án nhằm hỗ trợ giải quyết vấn đề này
● Dự án Tạo thuận lợi thương mại ○ $22 triệu đô la Mỹ trong 5 năm, được thực hiện bởi Nathan Associates, Inc. ○ USAID sẽ hợp tác với khối doanh nghiệp tư nhân nhằm giải quyết các vấn đề gây ảnh hưởng đến lợi thế thương mại của Việt Nam, từ đó nâng cao năng suất lao động và khả năng cạnh tranh
● Dự án USAID hỗ trợ các doanh nghiệp vừa và nhỏ tại Việt Nam kết nối với chuỗi cung ứng toàn cầu (LinkSME) ○ $22 triệu đô la Mỹ trong 5 năm, được thực hiện với IESC ○ Dự án sẽ thúc đẩy các doanh nghiệp vừa và nhỏ trong nước kết nối với các công ty toàn cầu, hướng đến chuyển giao công nghệ và kiến thức, nhằm tăng năng suất lao động
USAID Linkages for Small and Medium Enterprises 5 Tổng quan về doanh nghiệp tại Việt Nam
■ 98% tổng số doanh nghiệp; đóng góp 45% GDP Tổng quan về Doanh nghiệp ■ 69% số doanh nghiệp nhỏ và 55% doanh nghiệp vừa có hiệu quả hoạt động kém 1 Vừa và Nhỏ (DNVVN) ■ Luật Hỗ trợ DNVVN mới sẽ xúc tiến sự phát triển của DNVVN Việt Nam
■ FDI năm 2017: ước đạt 30 tỷ USD; và chiếm tỷ trọng 70% kim ngạch xuất khẩu của cả nước Doanh nghiệp ■ Các nhà đầu tư chính: Hàn Quốc, Singapore, Nhật Bản, Nước ngoài 2 Đài Loan và Hoa Kỳ (DNNN) tại VN ■ Hầu hết các DNNN đều kéo theo nhà cung cấp lâu năm của họ khi đến Việt Nam
■ Chỉ có khoảng 21% DNVVN của Việt Nam tham gia vào Liên kết giửa chuỗi cung ứng của DNNN 3 DNVVN và ■ Năng suất lao động thấp, thiếu nhân lực có kỹ năng DNNN được đào tạo bài bản, thiếu khả năng thích ứng và sử dụng công nghệ và hạn chế về kinh nghiệm hợp tác với DNNN là những yếu tố cản trở chính
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 6
Introducing LinkSME KPMG REPOSITORY KPMG
9/20/2018 USAID Linkages for Small and Medium Enterprises 7 Những nét chính về chương trình LinkSME Mục đích: Dự án hướng đến việc tao ra những thay đổi mang tính hệ thống trong quan hệ kinh doanh giữa DNVVN và DNNN tại Việt Nam, cho phép cải thiện đáng kể về mức độ liên kết của DNVVN với chuỗi cung ứng toàn cầu. Đôi nét sơ bộ về dự án Thời gian Tổng giá trị Nhà tài trợ Đối tác triển khai Dự án đang thực hiện dự án trong quá USAID / Việt IESC hợp tác với trình đăng ký Tháng 9, 2018 Nam thực hiện KPMG Việt Nam với chính phủ đến Tháng 9, $22.1 triệu USD với sự tài trợ và TAJ Media Việt Nam 2023 của USAID Việt Nam
Mục tiêu của Dự án
✓ Củng cố khung năng lực xây dựng mối liên kết hợp tác giữa DNVVN và DNNN ✓ Nâng cao năng lực của các DNVVN Việt Nam trong việc tham gia vào chuỗi giá trị toàn cầu của 5 ngành kinh doanh được xác định
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 8 Nhân sự chủ chốt của chương trình và Văn phòng
Nhân sự chủ chốt Phó Giám đốc Dự án Phó Giám đốc Dự án Tổng Giám đốc Dự án chịu trách nhiệm phía chịu trách nhiệm phía DNVVN DNNN Ronald Ashkin Dương Thị Kim Liên Frank Weiand
Trụ sở chính: Hà Nội Văn phòng khu vực: TP HCM Văn phòng tạm thời ( tính đến Tòa nhà Sun Wah, 115 Nguyễn ngày 21/09): Huệ, phường Bến Nghé, Quận 1 , 40, Cát Linh, Đống Đa, Hà Nội sử dụng văn phòng KPMG 10000 Phòng 400 ở Khách sạn Pullman Văn phòng chính thức sẽ được Văn phòng chính thức sẽ được đưa vào sử dụng ngày 1/12/ 2018 đưa vào sử dụng ngày 1/12/ 2018
9/21/2018 USAID Linkages for Small and Medium Enterprises Slide No. 9 Phương pháp tiếp cận chung NHAN DAN ONLINE
9/20/2018 USAID Linkages for Small and Medium Enterprises 10 Tổng quan về chương trình
Giai đoạn 1: Năm thứ 1- Giai đoạn 2: Năm thứ 3- Giai đoạn 3: Năm thứ 5 2 (Tháng 9, 2018 – 4 (Tháng 9, 2020 – (Tháng 9, 2022 – Tháng Tháng 8 2020) Tháng 8, 2022) 8, 2023) • Tạo điều kiện thuận lợi cho • Tập trung mở rộng quy mô hỗ • Áp dụng các bài học rút ra việc hỗ trợ liên kết hợp tác trợ đến nhiều doanh nghiệp được trong quá trình thực hiện giữa DNNN và các DNVVN đã trong 2 ngành tập trung ở giai chương trình để giảm thiểu đạt đủ năng lực yêu cầu. Thí đoạn 1 hơn và bắt đầu mở rộng những trở ngại hạn chế sự điểm trước cho 2 ngành kinh sang 3 ngành mới tăng trưởng của DNVVN trên doanh. • Tiếp tục chắt lọc các bài học toàn Việt Nam • Tập trung học hỏi, ghi nhận học được • Soạn thảo chính sách và để những thành quả đạt được và xuất những cải cách để cải tăng cường mối quan thiện điều kiện và môi trường kinh doanh của DNVVN
ngành được chọn: 3 ngành sẽ được chọn trong Giai đoạn 3 sẽ sử dụng thông Sắt thép (phụ tùng, nguyên nhóm các ngành khả thi dựa tin từ giai đoạn 1 và 2 và tập vật liệu đầu vào, hàng hóa trên phân tích ngành sẽ trung vào thiết lập các quy tiện dụng) Và Điện tử được thực hiện năm 2020 chế cho các cải cách quan trọng thông qua các tổ chức trong nước
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 11 Phương pháp tiếp cận của Giai đoạn 1
Tập trung kết nối DNNN và DNVVN trong ngành điện tử và sắt thép I
Duy trì liên hệ với các DNNN có tiềm năng cao để tạo ra một cộng đồng II DNNN muốn tham gia vào chương trình
Hỗ trợ quảng bá và giới thiệu các DNVVN đã sẵn sàng kết nối hợp tác đến với DNNN III
TAJ Media Vietnam sẽ là đơn vị chịu trách nhiệm công bố tin tức về những thành công của chương trình trên các kênh truyền thông tập IV trung vào đối tượng doanh nghiệp
Một kế hoạch quản lý dự án, đánh giá và học hỏi sẽ được xây dựng để đánh giá kết quả của dự án dựa trên số liệu thu thập được từ phía các V bên tham gia. Điều này cho phép chương trình điều chỉnh phương pháp hỗ trợ doanh nghiệp nếu cần thiết
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 12 Chiến lược CLA được ứng dụng cho Chương trình LinkSME Các mục tiêu của chiến lược LinkSME (CLA) Hợp tác, Học hỏi and Thích nghi 1. Sử dụng các kiến thức học được vào thực tế nhằm tăng cường các hoạt động thực hành và thúc đẩy nhân rộng 2. Đánh giá mức độ hợp tác với các chương trình tài trợ khác và gia tăng sự phối hợp
Hợp tác Học hỏi Thích nghi
Thảo luận : Thấu hiểu: Điều chỉnh: ▪ Tại sao một số giao dịch ▪ Các lĩnh vực (đầu tư và ▪ Chiến lược và các hoạt thành công và một số can thiệp vào DNVVN) để động bằng cách xác định khác thất bại? nhân rộng ở giai đoạn 2 các rào cản cho sự phát ▪ Các trở ngại nào mà ▪ Các rào cản nào cho sự triển của DNVVN và sự DNVVN phải đối mặt? phát triển của DNVVN liên kết DNVVN và DNNN ▪ Các loại đầu tư vào hoặc sự kết nối giữa Cũng như thấu hiểu : DNVVN nào sẽ mang lại DNVVN và DNNN ▪ Làm sao để thiết lập quy hiệu quả tốt hơn trong chế cải cách kinh doanh việc thúc đẩy kết nối? nhằm xóa bỏ các rào cản cho các ngành ngoài 5 ngành được chọn? 9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 13 Tổng quan giai đoạn 1, Năm thứ 1-2
Tập trung phát triển chương trình và hoàn thành những mục tiêu có thề đem lại lợi ích nhanh chóng
Xác định những DNNN phù hợp và cùng làm việc để giúp họ tìm ra những nhà cung cấp vừa và nhỏ phù hợp
Kết nối DNNN với nhà cung cấp vừa và nhỏ địa phương dựa Những trên nhu cầu kinh doanh ngày càng tăng hoạt động Kết nối DNNN với nhà cung cấp vừa và nhỏ địa phương dựa chính trên nhu cầu kinh doanh ngày càng tăng
Các can thiệp trong tương lai sẽ được thực hiện dựa vào kinh nghiệm và bài học đúc kết được từ giai đoạn 1
Một nhóm chuyên gia tư vấn khối DNVVN, bao gồm 10-12 thành viên sẽ có vai trò đưa ra những khuyến nghị về việc chọn lựa ngành nghề để hỗ trợ trong giai đoạn 2 cũng như chiến lược riêng biệt cho từng ngành
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 14 Tổng quan Giai đoạn 2, năm thứ 3-4 Những thành công, bài học và các mối quan hệ được xây dựng trong giai đoạn 1 sẽ ảnh hưởng đến hoạt động trong giai đoạn 2. Giai đoạn 2 sẽ tập trung vào doanh nghiệp trong 5 ngành kinh doanh được lựa chọn Lựa chọn ngành kinh doanh tập trung cho giai đoạn 2 ✓ 2 ngành kinh doanh tập trung trong giai đoạn 1 sẽ được đánh giá để quyết định xem có tiếp tục trong giai đoạn 2 không ✓ Các chuyên gia ngành sẽ thực hiện phân tích để xác định Những ra 3 ngành mới cần tập trung cho giai đoạn 2 hoạt Giai đoạn 2 sẽ bao gồm các gói hỗ trợ kỹ thuật chuyên sâu động cho DNVVN cho phép hỗ trợ được cho cả những doanh chính nghiệp với mức độ phát triển thấp hơn Nâng cấp năng lực của nhà cung cấp vừa và nhỏ xuyên suốt 5 ngành ✓ Tập trung vào khả năng của DNVVN trong việc đáp ứng yêu cầu của DNNN trên phương diện chất lượng, số lượng và thời gian ✓ Xây dựng niềm tin trong cộng đồng DNNN ✓ Xây dựng lộ trình phù hợp với nhu cầu và thách thức cụ thể của từng ngành
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 15 Tổng quan giai đoạn 3 – Năm thứ 5
Những bài học và kinh nghiệp đúc kết được ở giai đoạn 1 và giai đoạn 2 sẽ góp phần xác định những cơ hội ở giai đoạn 3
Chuyển đổi những bài học chính của dự án ở giai đoạn 1 và 2 thành các khuyến nghị cải cách môi trường kinh doanh, giảm thiểu những rào cản đối với DNVVN trong việc kết nối với chuỗi cung ứng toàn cầu
Những hoạt Chuyển giao năng lực hỗ trợ DNVVN cho các đơn vị địa động phương thích hợp, đơn cử là các hiệp hội, để đảm bảo tính chính bền vững của các can thiệp trong tương lai
Giai đoạn 3 sẽ tập trung vào việc tạo thêm mổi liên kết giữa DNVVN và DNNN ở 5 ngành tập trung được xác định ở giai đoạn 1 và 2
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 16 9/20/2018 USAID Linkages Linkages for SmallUSAID MediumEnterprises and Contact Information DNNN: Weiand, Frank Lien, Duong Ashkin, Ron USAID/Vietnam Linkages for Small and Medium Enterprises Enterprises Medium and for Small Linkages USAID/Vietnam [email protected] Phó Tổng Phó Giám Giám Giám đốc đốc đốc Dự Dự Dự án án án chịu : [email protected] chịu : [email protected] trách nhiệm phía Slide No. Slide 17 : VIETNAMFLAVOR.COM BROOKINGS BROOKINGS INSTITUTION
USAID LINKAGES FOR SMALL AND MEDIUM ENTERPRISES (LinkSME)
Presentation at the AmCham Supplier Days Event Ho Chi Minh City October 4, 2018
9/20/2018 USAID Linkages for Small and Medium Enterprises 1 PRESSE/GETTY PRESSE/GETTY IMAGES USAID Mission Goals Related -
to Economic Growth ONG DINH NAM/AGENCE FRANCE NAM/AGENCE DINH ONG Country Goal: Vietnam's continued transformation into a responsible, more inclusive partner
Development Objective 1: Governance Enhanced to Facilitate Broad-Based, Sustainable Growth
9/20/2018 USAID Linkages for Small and Medium Enterprises 2 Vietnam Has Been One of the Fastest Growing Economies in the World Aggregate GDP growth
As a result, per capita income has risen from $250 in 1995 to $2,170 in 2017, putting Vietnam in lower middle income status
USAID Linkages for Small and Medium Enterprises 3 A Major Economic Challenge Ahead is Avoiding the Middle Income Trap
Important need to raise labor productivity … but how?
USAID Linkages for Small and Medium Enterprises 4 Two New USAID Projects are Addressing This Issue
● Trade Facilitation Program ○ $22 million over five years, Nathan Associates, Inc. ○ Will address trade facilitation issues in consultation with private sector, thereby encouraging greater productivity and competitiveness
● USAID Linkages for Small and Medium Enterprises (LinkSME) ○ Also $22 million over five years, with IESC ○ Will encourage greater linkages between domestic SMEs and global firms that will lead to technology and skills transfer, leading to greater productivity
USAID Linkages for Small and Medium Enterprises 5 Vietnam Enterprise Data Small and ■ ~98 percent of total enterprises, 45 percent of GDP Medium 1 Enterprise ■ 69 percent of small and 55 percent of medium (SME) enterprises inefficient Landscape ■ New SME Law will catalyze growth for local SMEs
■ Foreign direct investment (FDI) in 2017: $30 billion Foreign Firms USD; accounts for 70 percent of Vietnam’s exports (FFs) in ■ Key investors: South Korea, Singapore, Japan, 2 Vietnam Taiwan, and the U.S.
■ Most FFs co-locate with their foreign suppliers
SME Linkages ■ Only 21 percent SMEs engaged in FF Supply Chains 3 to Foreign ■ Low productivity, lack of skilled employees, low Firms technology adoption and lack of experience with FFs have stunted development of these linkages
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 6 Introducing LinkSME REPOSITORY KPMG
9/20/2018 USAID Linkages for Small and Medium Enterprises 7 LinkSME in a Nutshell Purpose: The project will catalyze systemic changes in the business relationships between Vietnamese small and medium-sized enterprises (SMEs) and foreign firms (FF), significantly increasing the quantity and quality of linkages between SMEs and global value chains. Project Specifics Implementing Period of Donor Project Value Registration Partners Performance with IESC with KPMG September 5, Focus on Government of Vietnam and 2018 to core USAID / $22.1million Vietnam in TAJ Media September 4, Vietnam Process Vietnam 2023
Project Objectives
✓ Strengthen the SME-Foreign Firm business linkage framework ✓ Enhance Vietnamese SMEs’ capability to participate in global value chains in five sectors
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 8 Key Personnel and Office Locations
Key Personnel Deputy Project Director Foreign Firm Linkage Project Director and SME Linkage Director Director Ronald Ashkin Duong Thi Kim Lien Frank Weiand
Main Office: Hanoi Regional Office: Ho Chi Minh City Temporary office as of Sept 21: Sun Wah Tower, 115 Nguyen Hue 40, Cát Linh, Đống Đa, Hà Nội Street, Ben Nghe Ward, District 1, 10000 Bến Nghé, Quận 1 with KPMG Suite 400 in Pullman Hotel Permanent Office established by Permanent Office established by Dec 1, 2018 Dec 1, 2018
9/21/2018 USAID Linkages for Small and Medium Enterprises Slide No. 9
General Approach to Vietnam Linkages NHAN DAN ONLINE DAN NHAN for Small and Medium Enterprises
9/20/2018 USAID Linkages for Small and Medium Enterprises 10 Project Overview
Phase 1: Years 1 and 2 Phase 2: Years 3 and 4 Phase 3: Year 5 (September 2018 to (September 2020 to (September 2022 to August 2020) August 2022) August 2023) • Facilitate transactions • Focus on replication and • Apply lessons learned to between linkage-ready scaling of pilot transactions reduce major barriers SMEs and FFs in two within the initial two sectors limiting SME growth across selected sectors and three additional sectors Vietnam • Focus on learning, (5 sectors total) • Develop policy papers and developing evidence, and • Continued refinement of changes to enhance / strengthening relationships lessons learned improve SME’s business conditions
Selected Sectors: 3 Sectors shall be chosen Phase 3 will be informed by Metals (parts, input supplies, from among other viable Phase 1 and 2 and will focus widgets) and Electronics sectors based on sector on institutionalizing key analysis conducted in 2020 reforms through local entities 9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 11 Phase 1 Methodology
Focus on establishing FF-SME linkages in the electronics and I metals sectors
Maintain contact with high-potential FFs to ensure a II continuous pipeline
Support SMEs that are linkage-ready with marketing and III representation to the FF community
TAJ Media Vietnam to publicize successes in various business- oriented media channels IV
Project Monitoring, Evaluation, and Learning (AMEL) plan will evaluate outcomes based on collected data that will allow us V to tailor and adjust technical assistance as necessary
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 12 Vietnam Linkages for Small and Medium Enterprises CLA Strategy LinkSME Collaborating, Learning and Adapting (CLA) Objectives 1. Use lessons learned to strengthen activity implementation and foster greater replication / scaling 2. Evaluate the level of collaboration with other donor programs and improve synergies
Collaborate Learn Adapt
Discuss: Understand: Adjust: ▪ Why some transactions ▪ Areas (SME investments ▪ Strategy and activities by were successful while and interventions) for identifying constraints to some failed? replication in Phase 2 SME growth and SME-FF ▪ What were the barriers ▪ What are the constraints linkage faced by SMEs? for SME growth OR SME Also understand: ▪ What type of SME and FF linkage? ▪ How have we investments were more institutionalized business effective in creating a reforms to remove linkage? constraints beyond the chosen 5 sectors? 9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 13 Phase 1 Overview – Years 1 and 2
Focus on developing and completing quick-win transactions
Identify and engage with FFs and facilitate their ability to locate SME suppliers
Match FFs with local SME suppliers based on High increasing demand Level Activities Successful demonstrations of Vietnam Linkages for involved Small and Medium Enterprises will encourage more SMEs to engage with FFs and vice versa Future interventions will draw on experience and lessons learned in Phase 1
An SME Advisory Group, a public-private body, shall provide strategic input on the sector selection process and broad sector strategies for Phase 2
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 14 Phase 2 Summary – Years 3 and 4 Linkages in Phase 1 will inform activities in Phase 2. Phase 2 will target SMEs and FFs in five total sectors Sector Selection for Phase 2: ✓ Phase 1 sectors will be re-evaluated for continued inclusion in Phase 2 ✓ Sector experts will conduct sector analyses to identify three additional sectors based on constraints and opportunities High Phase 2 shall comprise of more intensive SME Level technical assistance packages due to their lower level Activities of readiness involved Upgrade SME supplier capabilities across all five sectors ✓ Focus on SME ability to meet FF requirements for quality, quantity, and timeliness ✓ Build trust within the FF community ✓ Develop roadmaps tailored to the unique needs and challenges of each sector
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 15 Phase 3 Summary – Year 5
Lessons and experience gleaned from Phases 1 and 2 will inform Phase 3 opportunities
Transform these key Project learnings from Phases 1 and 2 into actionable business reform recommendations that reduce barriers to SME growth
High Build SME technical assistance delivery (informed by Level FF demand) into appropriate local entities, such as Activities associations, to ensure the sustainability of involved interventions going forward
Phase 3 will also focus on creating additional linkages between SMEs and FFs from the 5 shortlisted sectors of Phases 1 and 2
9/20/2018 USAID Linkages for Small and Medium Enterprises Slide No. 16 9/20/2018 USAID Linkages for Small and Medium Enterprises Contact SmallUSAID Linkagesfor and Information Enterprises Medium Frank Frank Weiand, Foreign Firm Linkage Director: [email protected] Duong Lien, Deputy Project Director: [email protected] Ron Ashkin, Project Director: [email protected] USAID/Vietnam USAID/Vietnam Linkages for Small and Medium Enterprises Slide No. SlideNo. 17 : VIETNAMFLAVOR.COM