National Workshop SME Cluster Development and Export Consortia

National Workshop SME Cluster Development and Export Consortia Formation Presented by Mu Mu Aye Daw Assistant Director SMEs Service Centre Date - 28 ~ 30

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

Background History - MI conducted two-week Regional Training Programme of “SME Cluster Development and Export Consortia” on 14 th – 25 th 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

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

Methodologies - Using Guide by MI ( power point presentation) 6

* Activities There are 2 main activities had been included as it follows: v Preparation v Implementation

Activities 1. 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

Activities 1. 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)

Activities 2. 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)

Supporting Organization Partners 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)

Holding workshop - Date 15 th to 16 th August 2012 -Place SMEs service Centre No. 35 B/15 , New University Avenue , Bahan Township, Yangon -Financial support New Zealand Aid Programme (NZAID) -Technical support Mekong Insitute (giving guide line) 12

Participants - Fifteen participants ( business owners and members of MFFVPEA (Myanmar Fruit, Flower & Vegetable Producer & Exporter Association ) - Seven participants (MFFVPEA) - Eight participants (Business Owners) 13

List of participants NAME Ms Lai Oo POSITION Vice President CONTACT DETAILS Marlar Myaing Co. , Ltd. , Yangon Ph: 95 1 513017, 501352 Ms Than Swe(*) E-mail: dawlailaioo@gmail. com marlarmyaing@gmail. com Thazin Nwe Family Co. , Ltd. , Mandalay Managing Director Ph: 09 50 33124, 09 59 2003283 E-mail: Phothar 23@gmail. com Mr Khin Maung Htay(*) Thanswetzn@ gmail. com Summe Co. , Ltd. , Mandalay Managing Director Ph: 95 9 2002607 E-mail: kyawkyarsumme@gmail. com Dragon Fruit & Orchid Grower Mr Soe Htun Zaw (Larshio)(*) C/O U Thaung Han Ms May Hnin Yi Member of MFFVPEA Ph: 09 5260346, 082 30600 Myanmar Fruit, Flower & Vegetable Producer & Exporter Association (MFFVPEA) 14 Ph: 95 1 218367 E-mail: mayhninyi@gmail. com

List of participants NAME Ms Mya Maw POSITION Member of MFFVPEA CONTACT DETAILS Myanmar Fruit, Flower & Vegetable Producer & Exporter Association (MFFVPEA) Ph: 094 450044073 Dr. Thet Mar(Ms) Consultant of MFFVPEA E-mail: mapan 380@gmail. com Myanmar Fruit, Flower & Vegetable Producer & Exporter Association (MFFVPEA) Ph: 09 421030913 Mr. Thaw Zin Nyain E-mail: thetmar. thet@gmail. com San Foodstaff Owner No. 48, Mya Khwar Nyo Street No. (3), Thar Kay Ta Industrial Zone Ph: 09 5013128 Ms Wa Wa E-mail: Thawzin 81@gmail. com Macadamia Nuts Green Triangle Group Ms Nway Oo Ph: 09 73136662 Asia One Juice Director 15 Ph: 01 -376594

List of participants NAME Mr Maung Tin POSITION Managin Director CONTACT DETAILS Asia Gold Industrial Co. , Ltd Ph: 01 -394593, 385070, 399382 Mr Nyan Lin Shan Maw Myae Co. , Ltd Ph; 09 5501282 Email: nyanlin 49@gmail. com Mr Aung Myint Ph: 421015471 Ms Yin Than Shan Maw Myae Co. , Ltd Ph: 095501363 Email: Mr Ko Thein Naing Oo yinyinpl@gmail. com Macadamia Nuts Green Triangle Group Ph: 098627050 16

Resources Persons Mrs Tin Htwe Director (Retired) Directorate of Investment & Company Adminstration Ministry of National planning and Economic Development Module 1: AEC blueprint and AEC Challenges Dr Than Sein (Ms) Consultant , Myanmar Fruit , Flower and Vegetable producer and Exporter Association, UMFCCI, Yangon Module 1. Organic farming and Certificat 17

Resources Persons Mrs. Aye Win Deputy Director Central Department of SMEs Development Module 1: AEC Challenges on SME development Ms Mu Mu Aye Assistant Director Central Department of SMEs Development Module 1: Developing SME Clusters 18

Resources Persons Mr Tin Maung Htay Director (Planning) Myanmar Belle Company Ltd. Module 2: Principle of Export Consortia Creating an Export Consortia Mrs San Nwe Directorate of Investment & Company Adminstration Ministry of National planning and Economic Development Module 2: Creating an Export Consortia “ How to register public and private company ” & how to obtain an export certificate / licence 19

Resources Persons Mr Naing Aung Deputy Director Ministry of Commerce Module 2: Creating an Export Consortia “ How to register an export consortia ” & how to obtain an export certificate / licence Mr. Winn Maung Deputy Director Central Department of SMEs Development - Coaching to develop action plan 20

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 21

Workshop Activities 22

Workshop Activities 23

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 ü 1 st group selected Chilli (still need a company who can deal with Export and not export company registration yet) ü 2 nd group selected - Mango group - Macamidia group (they are also looking for Exporter since they are also producers and suppliers to domestic 24 market. )

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. 25

Outcomes - The output of the National workshop is Mango group export consortia from Mandalay region ) 26

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) 27

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. 28

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. 29

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. 30

Way Forward q National Workshop brings together individuals with complementary knowledge and skill in order to find innovative solutions to their problems big or small. q National Workshop takes collaboration to a whole new level by connecting them with new partners in the real world q 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. q 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. 31

v Conclusion v The participants gained new knowledge and skills from the modules. v They confirmed that it related to their field of works and they could certainly apply in their jobs. v The participants extended professional networks with their co- participants. v They enhanced social relationships and exchanged idea with one another. v. The participants developed the action plan on building capacity development on identified businesses with representatives from the relevant group among the participants. v 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. 32

Thank You Kyae Zu Tin Par Dal