STUDY ON MARKET &

VALUE CHAIN MAPPING

Study on Market and

Value Chain Mapping

Study of SME Cluster Value Chain of 19 Provinces along

the Southern Economic Corridor and Southern Coastal Corridor of

the Greater Mekong Subregion

November 2016

Trade & Investment Facilitation Department

Mekong Institute

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The Study Team

Trade & Investment Facilitation Department

Mekong Institute

Madhurjya Kumar Dutta, Program Director

Quan Anh Nguyen, Program Specialist

Reza Iftekhar Patwary, Program Specialist

Sanga Sattanun, Program Manager

Toru Hisada, Sr. Project Coordinator

Seang Sopheak, Program Coordinator

Ronnarit Chaiyo-seang, Program Officer

Study of SME Cluster Value Chain of 19 Provinces along

the Southern Economic Corridor and Southern Coastal Corridor of

the Greater Mekong Subregion Study conducted in: Cambodia, Myanmar, Thailand & Vietnam

Period of Study: June 2016-July 2016

Project: Enhancing Competitiveness of Small and Medium-sized Enterprises (SME) along the Southern Economic Corridor (SEC) of ASEAN Mekong Sub region (AMS)

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Abbreviations and Acronyms

ADB Asian Development Bank

AOBO Analysis of Business Operations

ASEAN Association of South East Asian Nations

B2B Business to Business

BDS Business Development Service(s)

BDSPs Business Development Service Provider(s)

BMO Business Membership Organisation

CCI Chamber of Commerce and Industry

CDE Community Development Enterprise

CFC Common Facility Centre

CIFR Cambodian International Financial Reporting Standards

CMTV Cambodia, Myanmar, Thailand, Vietnam

DOI Department of Industries

ERIA Economic Research Institute for ASEAN and East Asia

FGD Focus Group Discussion

FOB Freight On Board

FTI Federation of Thai Industries

GSO General Statistics Office (Vietnam)

GVC Global Value Chain

HACCP Hazard Analysis and Critical Control Points

HH Households

HP Horse Power

KHR Cambodian Riel

LC Letter of Credit

LVC Local Value Chain

OSMEP Office of SMEs Promotion (Thailand)

OTOP One Tambon One Product

ROCL Ratchaburi Organic Company Ltd.

SEC Southern Economic Corridor

SCC Southern Coastal Corridor

SEZ Special Economic Zone

SME Small and Medium Enterprises

SWOT Strengths, Weaknesses, Opportunities, Threats

THB Thai Baht (currency)

ToR Terms of Reference

ToT Training of Trainers

UNHCR United Nations High Commissioner for Refugees

UNIDO United Nations Industrial Development Organization

VA Value Addition

VC Value Chain

VASEP Vietnam Association of Seafood Exporters and Processors

VCCI Vietnam Chamber of Commerce and Industry

VD (or VND) Vietnamese Dong (currency)

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Contents

ABBREVIATIONS AND ACRONYMS .................................................................................................................................................. III

LIST OF TABLES ................................................................................................................................................................................. VIII

LIST OF FIGURES ................................................................................................................................................................................. IX

LIST OF MAPS ...................................................................................................................................................................................... X

EXECUTIVE SUMMARY ....................................................................................................................................................................... 1

CHAPTER A ......................................................................................................................................................................................... 4

INTRODUCTION, BACKGROUND OF THE STUDY & METHODOLOGY .......................................................................................... 4

1.1 INTRODUCTION ............................................................................................................................................................................ 5

1.2 BACKGROUND OF THE STUDY ................................................................................................................................................... 5

1.3 DEFINITION AND IMPORTANCE OF CLUSTERS: RECENT LITERATURE ...................................................................................... 6

1.3.1 About SME Clusters and Selection of SME clusters ............................................................................................................. 6

1.4 DEFINITION OF SMES IN CMTV ................................................................................................................................................... 7

1.4.1 Product Value Chain of SME clusters ................................................................................................................................... 8

1.5 TRADE FACILITATION ASSESSMENT ............................................................................................................................................ 8

1.5.1 Identification of investment needs ....................................................................................................................................... 8

1.5.2 Role of Trade Facilitators ........................................................................................................................................................ 8

1.6 METHODOLOGY .......................................................................................................................................................................... 8

1.6.1 Population Size (Total Number of SMEs in each country).................................................................................................. 9

1.6.2 Sampling ................................................................................................................................................................................... 9

1.6.3 Sources of Data ....................................................................................................................................................................... 9

1.6.3.1 Secondary Sources .......................................................................................................................................................... 9

1.6.3.2 Primary Sources ................................................................................................................................................................. 9

Details on Types and Numbers of Representatives ..................................................................................................................... 9

CHAPTER B ........................................................................................................................................................................................ 10

CLUSTERS & GENERAL ANALYSIS ................................................................................................................................................... 10

2.0 STAKEHOLDERS PERCEPTION ON TRADE POTENTIAL ............................................................................................................ 11

2.1 GENERAL ANALYSIS ................................................................................................................................................................... 11

ROADMAP MATRIX FOR THE CLUSTERS IN 19 PROVINCES OF VIETNAM, CAMBODIA, THAILAND, MYANMAR .................. 12

CHAPTER C ....................................................................................................................................................................................... 13

VALUE CHAINS OF SME CLUSTERS IN 19 PROVINCES .................................................................................................................. 13

3.1 CAMBODIA ................................................................................................................................................................................ 14

3.1.1 Banteay Meanchey Silk Weaving Cluster .......................................................................................................................... 15

3.1.1.1 Provincial Overview ....................................................................................................................................................... 15

3.1.1.2 Cluster Introduction and SWOT Analysis ..................................................................................................................... 15

3.1.1.3 Value Chain Map of Banteay Meanchey Silk Weaving Cluster .................................................