Vietnam - Italy Business Partnerships: Complementing Strengths Conquer New Markets

After months of preparation, top Italian experts worked with over 80 Vietnamese enterprises, associations, service and technical centres, the Forum was a great success. It was the end of a long journey for our project. Over 300 B2B meetings were held and dozens of factory visits took place. All participants were enthusiastic. Several business negotiations are ongoing and shall be finalized in the coming weeks to produce in Vietnam for the domestic and regional markets, to source in Vietnam goods for major Italian fashion brands, to restructure companies and enter into joint ventures, to distribute products in Vietnam, and to develop equity schemes between customers. A few test orders for furniture and footwear were agreed to check quality and delivery capabilities. In addition, agreements were finalized between Italian and Vietnamese Universities, testing and certification centres, trade fairs and design schools and services. This will integrate better Clusters and supply chains between the two countries.

 

It was a challenge to overcome fear and lack of knowledge, but there are also great opportunities. To face the world economic crisis, many SMEs are today more keen to group and partner together to explore synergies to reduce costs and look for new markets, to combine innovation and creativity with cost-effective production capabilities. The message was clear, one plus one should make more than just two. If you play alone the waves of the economic downturn may sink you, so better to anchor to a rock or make a winning fleet.

 

We actually responded to the demand of those Companies that accepted our call for assistance and partnerships, that were ready to open their factories and accounts and that wanted to find new partners and new ideas about design, production methods, product development, quality, reducing costs, energy and environmental impact. Most of the companies developed new products and those in fashion made new collections, having their designers team up with Italian experts. All the companies are asking for more.... In Vietnam there are no SME upgrading programs and with a small budget within the cluster project we brought in top experts that worked at the shop floor that trained several national experts. We did not employ academicians doing theoretical training. This is the UNIDO strength and approach. Now, we stimulated the appetite. SMEs are more efficient, lean and this allowed them to discuss with potential partners from a stronger position, reducing management and production gaps between European and Vietnamese SMEs. UNIDO experts were also able to pass this message to the Italian companies, building trust and confidence.

 

Our advantage is to operate globally. The industrial cluster approach has been studied, tools and training packages developed, monitoring and evaluating systems put in place. We continuously improve it. We are adapting to the local conditions and needs. We are working in emerging countries and LDCs, from Montegro to Senegal, from Russia to Central America, from Bolivia to South Africa. The approach was particularly successful in India. We started the like in Vietnam with a cluster of 30 companies. After 15 years, the country has promoted and reached the development of over 2000 clusters with good performance, efficiency and access to markets and employment. A Ministry has literally been created to promote SMEs cluster development, a Foundation created as an excellence centre and is now operating in many countries, new innovation cluster schemes are being launched to focus on innovation, CSR, environment. We are very proud of this and we hope that in Vietnam we can follow the same path.

 

The approach we adopted is not paternalistic. Both parties have something to learn, share, and build. Vietnam cannot continue on the long run to be exploited as a cheap production and sourcing destination. We promote a true integration of skills and know-how, of production and marketing, of innovation and product development for the local, regional and global markets. We tried to educate entrepreneurs, their purchasing and marketing people, their designers and commercial agents on this mutual and win-win focus and we are confident: it is happening.