In_Trade: Innovation andTrademark as a tool to successfully compete in the global market

Figures 2010:

•780 mln pairs of shoes

•200 mln handbag

•320 mln square feet finished leather

•824 companies employing 650,000 people

•Major export markets: EU, America, Japan

•Major export countries: USA, UK, Germany, Belgium, Italy, France

Background Vietnamese leather industry

Notes:

• Vietnam is among the five most important footwear exporters in the world

• Majority of production of shoes and leather comes form FDI companies

• Bags from private Vietnamese companies

• 475 companies in total, among 42 tanneries, great share of FDI companies and private companies

• USA by far biggest country, Belgium playing a big role, even if relatively small

• After WTO membership access to new markets

• FTA negotiations with EU planned

• Geographical situation and political stability

• Movement of industry to Asia

• Focus not only on cheap items

• Ensure supply of quality of raw materials and staff

• Focused on manufacturing for foreign companies

• Pressured by international consumer standards

• Weak basis in terms of branding and design

Opportunities and challenges

+

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Notes:

• The industry still imports most raw materials 

• Vietnamese footwear products see little value-addition, noting that their competitive advantage in terms of prices over rivals like China, India, Indonesia, and Thailand is also gradually shrinkingTo develop sustainably and become more competitive, the sector needs to restructure and increase the local content rateThe industry should upgrade technologies, expand the product range, and improve quality to meet the increasing demands of consumers

• No quotas, but also no GSP status

• High fluctuation of staff, which often moves to higher income sectors,

The project objective

Improve the know how and capacity of the Vietnamese leather IBOs and

companies

To become

an efficient consulting partner

for the governme

nt

Provide qualified

and efficient training

to members

orstaff

Improve networkin

g to enhance visibility

on foreign markets

• Partners LEFASO Consorzio Toscana Shoe Components debelux Chamber of Commerce Toscana Promozione

• Beneficiaries IBO, Chambers of Commerce Staff employed Companies in Europe and Vietnam Further stakeholders

Partners and beneficiaries

Activities

• Phase 1: Building public-private dialogue Starting the project Workshops in Vietnam on public

private dialogue Creating awareness

• Phase 2: Training courses on trade policies and market access Training for IBO Training for companies Study visits Best practice evaluation

Activities

• Phase 3: Technical Assistance to develop an integral package of services TA on trade issues focusing on

innovation and developing a trademark

TA to develop a voluntarily trademark

Workshop on innovation for companies

Workshop on capacity building

• Phase 4: Promotion of innovative results Presentation of collection B2B meeting Publications, webpage, closing

workshop

• Kick off meeting with presence of partners and IBO and stakeholders

• Workshop on Public Private Dialogue.

• Introducing different approaches in Germany, Italy, and Belgium

• Discussion on services that can be offered by IBO to their members

• Setting targets

Results phase 1

Note:

• Getting familiarised by different system of foreign trade promotion

• Visit to EU to get information on trade policy of EU

• Seminar on social compliance and REACH

• About 50 people attending workshop in Vietnam

• Training course for IBO staff in Vietnam on WTO issues and market access in Hanoi

• Study visit to Italy and Belgium, visit to the EU

• Workshop for companies in HCM city on challenges of globalization

• Issues addressed: WTO and FTA, market access and RoO, TBT, IPR, market entry, market trends, export building etc.

Results phase 2

Note:

• Getting familiarised by different system of foreign trade promotion

• Visit to EU to get information on trade policy of EU

• Seminar on social compliance and REACH

• 20 people attending study visit

• Workshop about 40 to 50 people in Hanoi and HCM City

• Workshop for IBO on trademarks with developing a trade mark philosophy, standards, and a tool kit

• Workshop on innovation addressing theoretical issues of brand development and setting up teams of companies

• Training of companies and IBO on capacity building in cooperation with different experts

Results phase 3

• Workshop on trade mark development enabled companies to enhance knowledge of trademark and marketing strategies to promote the development of companies in the domestic market as well as export. Businesses realized the importance of building and developing brand.In Vietnam, there are many small and medium companies; therefore, developing the collective mark is very necessary. When the collective mark has been built, small and medium companies would be stronger when they used that collective mark especially for export. 60 companies trained

• Companies need to be more active on design and branding, companies could create unique features for their products to differentiate themselves from competitors, in order to promote the image, dominate the market and sustain a persistent development.

• First steps to develop a brand,

• about 60 participants in the workshop (20 from the north, 40 from the south) and 7 directly assisted companies

• Workshop on capacity building introducing different Management modells for associations and chambers as well as public private cooperation 110 people attended

Note:

• TA and workshop on design and development of a new collection

• Presentation of collection at the leather fair in HCM City

• B2B meeting in HCM City

• Workshop on the EU’s monitoring program for all types on leather upper shoes originated form Vietnam and China

• Closing Workshop and presentation of results

Results phase 4

Note:

• Assistance program for companies to address problems in designing. The companies have selected the final samples from which to develop a new collection. 95 attendents the workshop, TA: 32 companies participated in TAP on design including 14 directly assisted companies.

• B2B promoted cooperative relationships and expand export. The participated companies shared information about advantages, disadvantages, opportunities and challenges for each region and for the world. The meeting also promoted domestic industry, introduced export potential, prestige of companies, the quality of products manufactured in Vietnam and the ability to satisfy the diverse, complex requirements of customers and importers. 150 participants

• Information on how to protect the legitimate rights and interests of enterprises as well as enhance their competitiveness in the competitive in the international market, contributing to their enterprises’ success in business. 90 participants in total in Hanoi and HCM

Transfer of know, how, developing of tools and sharing of results for leather associations, leather

companies and other stakeholders

Positive impact though involvements of IBO, companies and experts

Project success

• Further development of a service portfolio which is in conformity with realistic expectations of the companies

• Further Positioning the IBO as strong partners with international reputation

• Further efforts to guarantee minimum quality standards and meet customer demand

• Further measures in terms of training of staff and management

• Further investment in branding and design

Further areas for co-operation

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Bedankt voor uw aandacht.

Merci beaucoup pour votre attention.

Thank you for your attention.