s3 Calzadilla Sarmiento

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Published on January 22, 2008

Author: Silvestre

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Slide1:  Market Access Support for Vietnam, through the Strengthening of Capacities Dr. Bernardo Calzadilla Sarmiento UNIDO Deputy Representative - Geneva Presentation Outline::  Presentation Outline: UNIDO’s Trade Capacity Building Approach UNIDO’s current and planned programmes in the Trade Capacity Building field FOCUS: Vietnam Outcomes and Conclusions Presentation Outline: Slide3:  Global Trade Growth & Marginalisation Concerns Share of developing countries in global trade only 26% Every 1% growth in Trade, LEADS TO one-half % Income increase Over 75% of global trade is in manufactures (industrial goods) Slide4:  Global Trade Participation Challenges WORLD TRADE: MANUFACTURED GOOD Slide5:  Global Trade Participation Challenges NO TRADE GAINS WITHOUT PRODUCTIVE CAPACITY Slide6:  CHALLENGES IN ACCESSING MARKETS - Food Safety Requirements FDA IMPORT REFUSALS for the African Countries by Sub-region UNIDO ANALYSIS of Import Refusals, Source:US Food and Drug Administration Fishery/Seafood 717 refusals Global Trade Participation Challenges FROM TARIFF TO NON-TARIFF BARRIERS TO TRADE January 2005 – December 2006 Slide8:  Three thematic areas: Slide10:  “Products must conform to requirements of clients and markets”  CONFORMITY with standards “Rules for trade must be equitable and customs procedures harmonized”  CONNECTIVITY to markets “Countries must have marketable products for exportation”  COMPETITIVITY of productive capacities Challenges for trade participation: UNIDO 3Cs Global Trade Participation Challenges Integrating into Global Trade Slide11:  Supply side development (UNIDO) Industrial policy and supportive institutional structure Investment and technology transfer SME development and access to finance Cluster and export consortia development Productivity and quality Industrial Upgrading, sectoral technology support Cleaner Production, energy efficiency Standards & Conformity Assessment/Compliance (UNIDO) Development and harmonization of standards Development of testing services , PT Schemes Certification (products and enterprise systems) Metrology/Calibration chain Accreditation schemes Integration in to the MTS (WTO, UNCTAD, ITC, WB…) WTO rules, negotiations Trade facilitation (customs, documentation) Infrastructure (transport, ports) Compete Conform Connect UNIDO TCB - Key Focus Areas Slide12:  UNIDO’s TCB Projects: A FEW EXAMPLES Slide13:  NATIONAL PROGRAMS: Aid-for-Trade type Programmes (Supply-side & Conformity) Specific TRTA: EGYPT- Traceability of agro-industrial products for the European Market Product Specific TRTA: Regional Cotton Programme- a key issue in Cancún Supply and Conformity: INTEGRATED INDUSTRIAL DEVELOPMENT SUPPORT PROGRAMME FOR SRI LANKA Slide14:  Regional Programmes: Aid-for-Trade type Programmes (Supply-side & Conformity) - Regional Trade: UNIDO/EU - UEMOA Programme Productive Capacities and Quality Promotion Standards and Conformity Assessment Regional accreditation scheme Regional Trade: EAC (Burundi, Kenya, Rwanda, Tanzania, Uganda) - Trade capacity building in agro-products for the establishment and proof of compliance with international market requirements…with special focus on regional cooperation. Regional Trade: MEKONG (Cambodia, Lao PDR, Vietnam) Slide15:  Cambodia and Lao PDR Formulation and publication national standards, for domestic and export products Development of ISO 9001, ISO 14001 and HACCP certification services, reinforcing corresponding institutions Accredited Product Certification scheme established TBT enquiry point, standards library and documentation centre with facilities for acquisition and dissemination of information established   Vietnam Product certification scheme for CE marking and other IEEE requirements Compliance capacity for EU traceability, EUREPGAP, GVP and GTP Upgraded Vietnam Metrology Center National proficiency scheme launched and BOA staff trained in specialised areas Within this regional context, one area in which UNIDO has focussed has been on the issue of Vietnam's market access issues. Budget: US$ 2.5 million Donor: Norway Regional Trade: MEKONG (Cambodia, Lao PDR, Vietnam) UNIDO Aid-for-Trade type Programmes (Supply-side & Conformity) Slide16:  Market Access Support for Vietnam, through the Strengthening of Capacities Related to Metrology, Testing and Conformity US/VIE03/083 Slide17:  Asia’s Second-fastest-growing economy Source: FORTUNE (European ed.), Nov. 2006, No.9, Vol.154 GDP average during the past 5 years: 7.4% GDP growth in 2005 second highest in the Asian region: 8.4% Increasing Exports (textiles, seafood & furniture): US$32 billion FDI as a percent of GDP: 3.8% Literacy rate: 90% Growing interest from Global Manufacturers (looking for alternatives for China) such as: Intel, Victoria’s Secret, etc. Vietnam reduced its poverty rate from 51% to 8% in only 15 years Remarkable achievement - Exports the Key Lessons from high growth countries: Vietnam VIETNAM – Surging Ahead Slide18:  VIETNAM: Significant Trade Potential Rapid Economic Growth GDP growth 8.4% in 2005, fastest growth in Southeast Asia, from US$ 31 bn. To US$ 52 bn. over the last 5 years Population of 82 mn., ranking 14th largest in the world Growing Imports, Exports and Investment Becoming a competitive regional manufacturing base Source: WDI Slide19:  US/VIE/03/083 PHASE I Quality Assurance and Testing Centre 3 (QUATEST 3), Ho Chi Minh City Mass measurement laboratory Temperature Measurement laboratory Vietnam Metrology Institute (VMI), Hanoi Mass measurement laboratory Temperature Measurement laboratory Slide20:  Quality Assurance and Testing Centre 1 (QUATEST 1), Hanoi Textile testing laboratory: Quality Assurance and Testing Centre 3 (QUATEST 3), Ho Chi Minh City Food testing laboratory: Microbiology testing laboratory: National Fisheries Quality Assurance and Veterinary Directorate Branch 1 (NAFIQAVED 1), Hai Phong City Microbiology testing laboratory: Carries out physical and compositional testing of textiles and garments. Carries out a wide range of testing of products, food and animal feedstuffs. Carries out tests on fruits & vegetable products, fish & fish products, milk & milk products, and water. Carries out tests on fish & fish products, and potable water. Slide21:  Examples of training provided under the Project Slide22:  Accreditation in Vietnam and Corporate Governance of STAMEQ need to bring the BoA into full compliance with ISO/IEC 17011 continue training activities for BoA staff members and technical assessors ToR for proposed Accreditation Council drafted Develop new laws on standards and quality (Gov. deadline for standards legislation mid 2006 & for legislation on quality late 2006) Slide23:  Board of Accreditation (BoA): In order to continue the process towards a more independent status of the BoA, the functions of Deputy Director-General of STAMEQ and Director of BoA have been separated as of May 15, 2006. The Government published a decree (No 43/2006/NĐ-CP) in April 25, 2006 that allows “commercial entities” within the government’s administration to benefit with autonomy in personnel, finance and operations; and encourage the corporatization of organizations within the government administration. Significant developments in Vietnam’s public administration: Slide24:  STAMEQ: SWOT Analysis Longstanding customer relationships, Easy access to government-owned companies; Political connections; Good and quick response to client requests due to availability of local experts within the country, familiarity with local context/language. Testing: the ability to offer a range of technical fields in-house. High quality of service, experienced workforce. Specialized in areas where high volumes can be generated (other services are sourced from specialized laboratories). BDS: “package” approach is interesting and attractive to SMEs, especially newly established ones, and donors who are funding SME support programs, including possibly programs established in neighboring countries. HWC: Currently the only training/consulting organization specializing in the field of welding (and the only officially recognized welding institute in Vietnam). Vertical and horizontal integration within STAMEQ (provided synergies are exploited). STRENGHTS Slide25:  STAMEQ: SWOT Analysis WEAKNESSES Broad diversification rather then specialization within the entities; Internal competition in some key areas; Ability to cope with political constraints as a state organization. Although entities will enjoy a large degree of autonomy after implementation of Decree Nr. 115, they still might have to cope with political constraints; Marketing capacity/budget lower then possible new, foreign-invested market entrants, sales side weak; Lack of managerial accounting system. Slide26:  STAMEQ: SWOT Analysis OPPORTUNITIES Capitalize on testing needs arising from increased investment and export activities; Capitalize on opportunities arising from integration of Vietnamese enterprises in multi-national supply chains; Consulting and certification in ISO 9000 for government bodies (according to Decision Nr. 144/2006 issued by the Prime Minister on applying ISO 9000 in government offices). The conditions defined according to this decision leads to a de facto monopoly of STAMEQ in this field. The training center intends to develop capacities to exploit this opportunity. Slide27:  STAMEQ: SWOT Analysis THREATS Increased foreign competition in testing and in-country establishment of competitors in QMS consulting and certification; Relatively mature market for ISO 9001; The establishment of in-house testing facilities, or testing facilities in industrial zones; Gradual decrease of donor support for SME BDS; Could decision Nr. 115 lead to a situation where many smaller institutions need to seek new revenues and subsequently also use their laboratories more intensively for testing activities? Whether this is a threat or opportunity depends mainly on whether STAMEQ can maintain its quality (and convince clients to pay a higher price for it). VIETNAM: WTO Accession – a Challenge :  VIETNAM: WTO Accession – a Challenge - WTO accession – a demanding process - Success in meeting WTO obligations also depends on the technical assistance support provided in meeting the requirements of the TBT/SPS agreements - WTO TBT/SPS agreements are to be implemented immediately - Establishment of TBT and SPS Enquiry Points Promotes continued domestic reform towards perfecting a market based economy Promotes meaningful market access to foreign markets Increased export opportunities Attract larger flows of FDI Poverty reduction WTO ACCESSION BENEFITS : The way forward:  The way forward - WTO Accession. - TBT Issues addressed through Enq. points SPS Strengthen capacity to deal with Standards and Conformity Requirements related to Key Export Sectors in Vietnam Enhance ownership Improve participation and influence standard development

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