Presented by -

Daw Mu Mu Aye Assistant Director

SMEs Service Centre

Date - 28 ~ 30 November, 2012, MI,Khon Kanen ,Thailand

National Workshop SME Cluster Development and Export

Consortia Formation

Out Lines Out Lines

- Background history- Aim- Objectives- Methodologies- Activities- Outcomes- Challenges- Lesson learned- Recommendation- Way Forward- Conclusion

Background HistoryBackground History

- MI conducted two-week Regional Training Programme of “SME Cluster Development and Export Consortia” on 14th – 25th May, 2012 at its Residential Training Center in Khon Kaen, Thailand.

- Part of the three-year project on “Capacity Building for the Integration of CLMV Economies into ASEAN Economic Community” from 2012-2014

- Six participants from Myanmar attended

- Divided into two groups CD & CC

- As a fulfillment of CD Action Plan about the Regional training of SME Cluster Development and Export Consortia held by Mekong Institute

AimAim

- This national workshop aims to introduce Myanmar SME exporters to necessary steps and tools to form clusters and their integration into regional and global market through export consortia.

Objectives

To increase understanding of SME and their significance in the context of AEC 2015; To facilitate formation of SME clusters and export consortia across the country; To promote SME cluster linkages and support their integration to regional and global value chains; To promote SME cluster linkages to reinforce long- term business cooperation and networking locally and globally

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- Using Guide by MI ( power point presentation)

There are 2 main activities had been included as it follows:

Preparation

Implementation

ActivitiesActivities1. Preparation

− Planning

− Meeting ( RUMFCCI, MIA , MWEA and CD group)

− Translate documents into local language

− Print out

− Survey

− Choosing the best product

− Contact with the association

− Setup the training agenda

− Inviting the potential members

ActivitiesActivities1. Preparation

* Conducting a quick survey on SME cluster and Export Consortia across the country

* Collecting forms and information from concerned Ministry on the registration process of export consortia

* Developing the tentative schedule and the detailed budget for the workshop

* Contacting resource persons (Invite technical staff from relevant agencies/organizations to talk about export consortia registration process and obtaining an export certificate/license).

* Submitting the proposal (including the tentative schedule, detailed budget, list of participants and resource persons) to Mekong Institute for approval

* Arranging logistics (send invitations, book accommodation and workshop room, arrange lunch and coffee break, print hand-outs; prepare evaluation tools including mood meters, pre & post assessment sheets)

ActivitiesActivities2. Implementation

- Opening (Introduction speech by Director and Ms Sweety from MI)

- Lecture presentation and discussion .

- Action plan discussion

- Closing ( speech by Deputy Director and one of the participants)

Government : - Ministry of Industry Ministry of Commerce

Ministry of National Planning

NGOs : - Republic of Union of Myanmar Federation of Chamber of Commerce and Industry (RUMFCCI)

- MFTB bank - Mekong Institute (MI)

Association : Myanmar Industrial Association (MIA) Myanmar Women Entrepreneur Association

(MWEA)

Government : - Ministry of Industry Ministry of Commerce

Ministry of National Planning

NGOs : - Republic of Union of Myanmar Federation of Chamber of Commerce and Industry (RUMFCCI)

- MFTB bank - Mekong Institute (MI)

Association : Myanmar Industrial Association (MIA) Myanmar Women Entrepreneur Association

(MWEA)

Partners

Supporting OrganizationSupporting Organization

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Holding workshop

- Date 15th to 16th August 2012

-Place SMEs service Centre

No.35B/15 ,New University Avenue ,Bahan Township, Yangon -Financial support

New Zealand Aid Programme (NZAID)-Technical support

Mekong Insitute (giving guide line)

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Participants

- Fifteen participants ( business owners and members of MFFVPEA (Myanmar Fruit, Flower & Vegetable Producer & Exporter Association )

- Seven participants (MFFVPEA)

- Eight participants (Business Owners)

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List of participantsNAME POSITION CONTACT DETAILS

Ms Lai Lai Oo Vice President Marlar Myaing Co.,Ltd., Yangon

Ph: 95 1 513017, 501352

E-mail: dawlailaioo@gmail.com marlarmyaing@gmail.com

Ms Than Than Swe(*) Managing Director Thazin Nwe Family Co.,Ltd., Mandalay

Ph: 09 50 33124, 09 59 2003283

E-mail: Phothar23@gmail.com

Thanswetzn@ gmail.com

Mr Khin Maung Htay(*) Managing Director Summe Co.,Ltd., Mandalay

Ph: 95 9 2002607

E-mail: kyawkyarsumme@gmail.com

Mr Soe Htun Zaw (Larshio)(*) Dragon Fruit & Orchid Grower

C/O U Thaung Han

Ph: 09 5260346, 082 30600

Ms May Hnin Yi Member of MFFVPEA Myanmar Fruit, Flower & Vegetable

Producer & Exporter Association (MFFVPEA)

Ph: 95 1 218367

E-mail: mayhninyi@gmail.com

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List of participants

NAME POSITION CONTACT DETAILS

Ms Mya Mya Maw Member of MFFVPEA Myanmar Fruit, Flower & Vegetable

Producer & Exporter Association (MFFVPEA)

Ph: 094 450044073

E-mail: mapan380@gmail.com

Dr.Thet Thet Mar(Ms) Consultant of MFFVPEA Myanmar Fruit, Flower & Vegetable

Producer & Exporter Association (MFFVPEA)

Ph: 09 421030913

E-mail: thetmar.thet@gmail.com

MrThaw Zin Nyain Owner San Foodstaff

No.48, Mya Khwar Nyo Street No.(3), Thar Kay Ta Industrial Zone

Ph: 09 5013128

E-mail: Thawzin81@gmail.com

Ms Wa Wa Macadamia Nuts Green Triangle Group

Ph: 09 73136662

Ms Nway Oo Director Asia One Juice

Ph: 01-376594

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List of participants

NAME POSITION CONTACT DETAILS

Mr Maung Maung Tin Managin Director Asia Gold Industrial Co.,Ltd

Ph: 01-394593, 385070, 399382

Mr Nyan Lin Shan Maw Myae Co.,Ltd

Ph; 09 5501282

Email: nyanlin49@gmail.com

Mr Aung Myint Ph: 421015471

Ms Yin Yin Than Shan Maw Myae Co.,Ltd

Ph: 095501363

Email: yinyinpl@gmail.com

Mr Ko Thein Naing Oo Macadamia Nuts Green Triangle Group

Ph: 098627050

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Resources Persons

Mrs Tin Tin Htwe Director (Retired)Directorate of Investment & Company AdminstrationMinistry of National planning and Economic Development Module 1:AEC blueprint and AEC Challenges

Dr Than Than Sein (Ms)Consultant ,Myanmar Fruit ,Flower and Vegetable producer and Exporter Association, UMFCCI, Yangon Module 1. Organic farming and Certificat

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Resources Persons

Mrs. Aye Aye WinDeputy DirectorCentral Department of SMEs Development Module 1: AEC Challenges on SME development

Ms Mu Mu Aye Assistant DirectorCentral Department of SMEs DevelopmentModule 1: Developing SME Clusters 

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Resources Persons

Mr Tin Maung Htay Director (Planning) Myanmar Belle Company Ltd. Module 2: Principle of Export Consortia Creating an Export Consortia

Mrs San NweDirectorDirectorate of Investment & Company AdminstrationMinistry of National planning and Economic DevelopmentModule 2: Creating an Export Consortia “ How to register public and private company ” & how to obtain an export certificate / licence

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Resources Persons

Mr Naing AungDeputy DirectorMinistry of CommerceModule 2: Creating an Export Consortia “ How to register an export consortia

” & how to obtain an export certificate / licence

Mr. Winn MaungDeputy DirectorCentral Department of SMEs Development- Coaching to develop action plan

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Contents

Module 1: SMEs and Cluster Development Session 1 .AEC Challenges on SME Development Session 2. Developing SME Cluster

Module 2: Export Consortia Formation Session 1. Principles of Export Consortia Session 2. Creating an Export Consortium

Module 3: The Coaching plan to form teams for export consortia

 

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Workshop Activities

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Workshop Activities

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Outcomes

The participants were divided into two group for prepare the action plans and formation of Export consortia group provide coaching on value chain for the business members in the relevant business sector and register formally as export consortium.Each group to identify and choose one key product 1 st group selected Chilli (still need a company who can deal with Export and not export company registration yet) 2nd group selected - Mango group - Macamidia group (they are also looking for Exporter since they are also producers and suppliers to domestic market.)

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Outcomes

Although the output of the National workshop is 2 teams for export consortia which will be coached to form and register as Export Consortia within two months.

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Outcomes

- The output of the National workshop is Mango group export consortia from Mandalay region )

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Challenges

Come from participants- Most of SME are ’ t understand the meaning of SMEs

cluster very well (to build HRD) - Need to company set up registration and export license - Can’t supply market demand for export (Although they have Export market ) market )

- lack of Finance - lack of Technology (Need to upgrade the products to meet international standard)

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Challenges

-Problems that might arise due to the organization or management of the consortium- Lack of trust- Members may be reluctant to engage whole heartedly- Conflicts arise for financial contribution- Since all firms have their own agenda, many of the decisions taken within the consortium will involve the degree of compromise between the members- Members achieve different export result, tension may arise-On the quality control, member may perceive this as an intrusion into their autonomy- Members may have difficulty to agree on an external candidate for the position of Executive Director.

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Lesson learned

• Lectures with power point presentation and Native language enabled the participants to follow up the discussion more effectively.

• Sharing CD for Lectures with power point

presentation to support the participants when

they want to learn after workshop.

• Programme schedule should not be too tight.

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Recommendation

-Support is key for the start-up and development of export consortia but it should be limited to a period of time.

-It should be taken into account that the needs of consortia are not the same in all stages of their life cycle.

- Since the key factor for successful cooperation is the ability to communicate and interact, support to consortia should be oriented to the creation of conditions to make communications and interactions frequent and easy.

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Way Forward

National Workshop brings together individuals with complementary knowledge and skill in order to find innovative solutions to their problems big or small.

National Workshop takes collaboration to a whole new level by connecting them with new partners in the real world

Myanmar government is now conducted political reforms and national reconsolidation with might and main. Government has started the reform strategy and it gives special focus on SME development, and also will increase the ratio of private ownership.

These movement will also promote the SME sectors and will develop the formation of Export Consortia. In this situation SME can face their business counterparts when AEC occurs in 2015.

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Conclusion

The participants gained new knowledge and skills from the modules. They confirmed that it related to their field of works and they could certainly apply in their jobs. The participants extended professional networks with their co- participants. They enhanced social relationships and exchanged idea with one another. The participants developed the action plan on building capacity development on identified businesses with representatives from the relevant group among the participants. SMEs need to adopt a development mindset and look ahead, plan carefully, build up their capacity and capability and venture forward actively to achieve the ultimate goals.

Kyae Zu Tin Par Dal

Thank You