1. Danida Support to do business in Vietnam JPO Workshop 16 June 2004 in Hanoi Lars Mikkel Johannessen Development Counsellor Royal Danish Embassy

2. Introduction Reform process and general support The Private Sector Development Programme The Business Sector Programme (prep.) Public Private Partnership (prep.) The Industrilization Fund For Developing Countries

3. Reform Process Equitisation of State Owned Enterprises Strategy for Public Administrative Reform Capacity development in Central Institute for Economic Management TA to State Bank of Vietnam in International Accounting pracitices Capacity development to Business Associations in Hanoi and HCMC

4. General support Support to Vietnam Business Forum Capacity development to Vietnams Garments Association Research cooperation between Vietnamese and Danish business universities.

5. Private Sector Development Program

6. The PSD Programme Objectives: –Support business-to-business partnerships –Create economic growth –Poverty alleviation Disbursements in 2003: $ 4.7 million

7. Criteria for partnership support Development prospects (Danida’s development objectives) Open to all sectors of business and industry Long-term partnerships Commercially viable

8. Phases of a partnership Preparation phase Study visits (by Danish Partner company) Market and feasibility studies Grants: Max. DKK 250,000 Preparation phase Study visits (by Danish Partner company) Market and feasibility studies Grants: Max. DKK 250,000 Start-up phase Two types of start-up facility: Testing the partnership Training and technical assistance Maximum duration of 1 year Grants: Max. DKK 500,000 Start-up phase Two types of start-up facility: Testing the partnership Training and technical assistance Maximum duration of 1 year Grants: Max. DKK 500,000 Project phase Business partnerships: Training and technical assistance Transfer of knowledge and know-how Environmental support Export promotion Loans: Based on specific assessment Grants: Max. DKK 3 mill. Project phase Business partnerships: Training and technical assistance Transfer of knowledge and know-how Environmental support Export promotion Loans: Based on specific assessment Grants: Max. DKK 3 mill.

9. Case: Mascot Int. A/S Nhu Quynh Garment Co. Ltd. Co-operation on production of work wear to the Danish market –Training and technical assistance in production and marketing Located in Hung Yen Province www.mascot.dk

10. Case: Kiki Design A/S Quang Vinh Co. Ltd. Co-operation on production of ceramics aimed at the Western markets: –Transfer of know-how in manufacturing and selling pottery –Training and technical assistance to creation of new designs, organising production, management, marketing and application of IT Located in Hanoi www.kiki.dk

11. Case: Topas A/S Le The Chinh Private Enterprise Co-operation on eco-tourism –Eco-Lodge –Financial and Technical co- operation –Training in environmental friendly tourism Located in Hanoi and Sapa www.topas.dk

12. The Business Sector Program

13. The Business Sector Programme We want to: –Support economic growth through development of the business sector in Vietnam Budget: $ 30 million Start late 2004 - five years

14. Basis for Danida support The CPRGS Obstacles and barriers for business development Other donors in the sector

15. In business with the CPRGS ”The private sector is an integral part of the national economy generating more jobs and making an important contribution to GDP growth” ”Vietnam will create a fair and level playing field for all enterprises” Small- and medium-sized enterprises (SMEs) must have easy access to government support”

16. Some business barriers Insufficient access to capital and land Limited transparency in the legal system Poor implementation of reforms Corruption and harassment of the private sector Limited market knowledge and access

17. Danida Business Sector Programme content Support to the local business environment Improved labour standards Competitiveness of SMEs Improvement of commercial dispute resolution Business related research

18. Main co-operation partners Agency for SME-development, Ministry of Labour, Invalids and Social Affairs, Ministry of Justice, National Assembly Committee for Economic and Budgetary Affairs Province based: People’s Committees and Councils, Business Associations and Trade Unions UNDP, UNIDO, ILO and other donors involved

19. Public-Private partnership (under preparation) Business Linkage Projects between Vietnamese SOE’s and Danish companies: Support to ’due diligence’ assessements in relation to equitisation of SOE’s. Public/private investment: Joint investments from Danida and private Danish companies in Vietnam

20. The Industrialisation Fund for Developing Countries IFU offers capital and advice to joint venture enterprises in developing countries IFU participates as a partner in the joint ventures through committing equity capital and/or loans through board membership Carlsberg, KMC, Sea Saigon Shipping, Orana, Scancom, Vidagis

21. Stay in business stay in contact Thomas Bo Pederesen – Business counsellor at the RDE, Hanoi

22. Thanks for your attention