BUILDING ON THE EXPERIENCE OF SUSTAINABLE PRODUCT DESIGN

1. 3rd Global Networking conference on Resource Efficient & Cleaner Production In developing and transition countries Montreux, Switzerland 4-6 September 2013 BUILDING ON THE EXPERIENCE OF SUSTAINABLE PRODUCT DESIGN Vietnam Cleaner Production Centre

2. Outline • Brief description of the Cleaner Production for Better Product (CP4BP) project • From CP4BP to Sustainable Product Innovation (SPIN) • Closing remarks 2

3. Brief on CP4BP project • Lead applicant: Vietnam Cleaner Production Centre (VNCPC) • International partners: UNEP DTIE (France), TU Delft (Netherlands) • Regional partners: AITCV (Vietnam), LNCCI (Lao PDR), PSMI (Cambodia, Associate) • Project Start: November 2007 • Duration: 20 months • Budget: 500,000 € (EC financing: 75% = 400,000 €) • Beneficiaries: Vietnamese, Cambodian and Lao population

4. Brief on CP4BP project Objectives: • Through the uptake of CP and D4S, to increase the capacity on developing eco-friendly and socially responsible products in Vietnam, Cambodia and Lao PDR to create trade opportunities with European countries Main activities: • Project Start-up and initial training • Pilot projects and research studies • Finalization of project and dissemination of resources

5. From CP4BP to SPIN Key Overall Findings from the CP4BP project • D4S is a valid concept that can be profitable and result in environmental and social improvements • Sustainability can bring value to a quality product for which a growing market is willing to pay • Integrating sustainability remains a challenge for companies and their intermediaries - D4S approach can be more streamlined - Companies need technical support to develop sustainable innovation capacities and marketing support to sell new products - More commitment is needed from companies

6. From CP4BP to SPIN • Duration: Four years: 4/2010 – 03/2014 • Donor: SWITCH-Asia program, EU funded • Partners: • Delft University of Technology (TUD), The Netherlands – Leading • Vietnam Cleaner Production Center (VNCPC), Vietnam • Asian Institute of Technology in Vietnam (AITVN), Vietnam • United Nations Environment Programme (UNEP), France • Lao National Chamber of Commerce and Industry (LNCCI), Laos • Cambodia Cleaner Production Office (CCPO), Cambodia

7. Introduction of SPIN Overall objectives: To promote potential innovation in the industry and increase social and environmental quality of the products produced in Vietnam, Laos and Cambodia in a large scale 7

8. Introduction of SPIN Specific objectives: • Domestic • Regional • EU Markets More sustainable and advanced products (more than 1000 new products) • Furniture • Handicraft • Food processing • Textile • Footwear 500 companies in Vietnam, Laos and Cambodia 8

9. SPIN methodology

10. Project work packages • Coordination and Inception: - Set-up the SPIN GO in Hanoi and help desks in HCMC, Laos and Cambodia • - Project preparation report; - Kick-off workshop and launching ceremony… • SPIN Toolkit Development and Studies: - SPIN toolkit • - Studies on SPIN potential, market requirements and market channels • - Studies on policy and institutional mechanisms for promoting sustainable product in Vietnam, Laos and Cambodia • SPIN Capacity Building and Support: - Train the trainer workshops • - Exchange programme; - Innovation skill building workshops • SPIN Implementation – Products re-/new design in 500 companies • - Companies identification and selection; - Company-projects kick-off events and company staff training • - Company-projects implementation and follow-up; - Company-projects monitoring and evaluation • Marketing and Market Building: - Project image and promotion material, project branding • - Marketing skills for companies; - Market access and participation in trade fairs and related events • - Sustainable product policy workshop; - Promotion of sustainable public procurement • Outreach and Sustainability: - Information dissemination & Networking; - Networking events • - SPIN product fairs; - National working conferences on sustainable product policy • - Stakeholders review meetings; - Final report on lessons learned 10

11. Enabling Mechanism Source of Innovation Mechanism for acquisition & transfer Outcomes Policy and institutional mechanisms for promoting sustainable product • Technology transfer • Technical Assistance • International Trainings, education and exchange programmes • ICT based International Sources • Policy level intervention plays a critical role; • Synergy between private sector interests and public policies become more important. Institutional governance • Specialised R&D institutions • Efficient businesses • Developed of supply chain • Network (of businesses, stakeholders) • Efficient extraction and use of natural resources Financial governance Indigenous knowledge • Patenting & Licensing • Capacity building • University – Business linkages • Business incubators • Information sharing network Education & training Knowledge Creation

12. Implementation & lesson learned • Technology push • Market pull • CP + Product modification/improvement • Product strategy • Business to Business (B2B) initiative (or company clustering) • Community development through system innovation

13. Implementation and lesson learned Concept: Based on current technologies of companies, helps to improve or shift to advanced technologies to enhance product quality and competitiveness Technology push • In-practice examples: • TxT (Quan Hoa, Thanh Hoa): • Carbonizing technology to reduce 10 times the period of processing “luong” bamboo; and Zero-waste technology to make use of all solid waste in the process • Bamboo Living Co.: • Green composite technology to reduce the amount of chemicals in matrix and shift to the use of natural fibers (jute, coconut) and lignin • Lesson learned: • Feasible if technology is not too complicated and requires reasonable investment • Technology should be owned and transferred by national consultant companies Technology innovation in TxT Co.

14. Implementation and lesson learned Market pull (demand pull) Concept: Innovation is developed in response to an identified market need • In-practice examples: • Ngoc Dong Co.: Mushroom products: • Very high demand of the market • Make use of agricultural wastes • →SPIN implementation: • Providing consultancy in technology, packaging and market analysis Lesson learned Reliable assessments on market research and profits are very important Mushroom product of Ngoc Dong Co. Mushroom bracket made from agricultural wastes

15. Implementation and lesson learned CP + Product modification/improvement Concept: Redesign and benchmarking in combination with CP In-practice examples: 70 companies in Cycle 1 (2011) in 3 sectors (handicraft, furniture and food processing) Blue and white collection by An Do Co. Leaf collection by Han Hanh Co. Lace collection by Viet Quang Co. • Lesson learned: • Product selection is very essential • Solutions must be practical, both qualitative and quantitative, and regularly updated

16. AnDo Ceramics, Bat Trang “When we introduced these new products, even national producers and Bat Trang pottery craftsman did not believe that An Do was able to produce such delicate, light and sophisticated products”. “In the upcoming years, the orientation of An Do is keeping moving towards cleaner production and sustainable product innovation to increase the product value and reduce environmental impacts”. Name: Vu Thi Cam Tu Function: Director An Do Age: 36

17. Implementation and lesson learned Product strategy Product strategy: Develop a simple and practical CP-D4S strategy for company with a practical focus that can bring in the measurably tangible results. In-practice examples: - CauTre Co.: To develop company’s product brand identification and new product line - ThuyPhu Lang Co.: To make use of traditional product characteristics • Lesson learned • Most of Vietnamese SMEs do not have product strategy • Need to combine strategy with specific intervention to re-/new-design products Product of Thuy Phu Lang Co.

18. Implementation and lesson learned B2B (Business to Business) initiative (company clustering In-practice examples: - Horizontal clustering: Dong Trieu households - Vertical clustering: X4 & Ngoc Dong companies • Concept: • To connect businesses • in the same sector to collaborate in production improvement • or in the same supply chain to improve system sustainability Terra Cotta products manufactured by Dong Trieu households. B2B initiative clustering helped them in the way of fostering implementation and learning process among businesses Lesson learned Enterprises are more encouraged to implement innovation together with other firms in their sector or supply chain

19. Implementation and lesson learned Community development through system innovation In-practice examples: SuoiGiang tea project: Making waste a great resource for Hmong people in the mountainous area. Provide equipment and technologies that are combined to form a closed-loop waste management model, thus producing useful products for the community. Concept: Enhance the flow of technology and information among people, enterprises and institutions for a sustainable development of community Lesson learned: System innovation requires commitment, but can lead to a more effective result. Gasifier – an improved cooking stove – uses agricultural wastes for effective burning and causes less environmental impacts

20. Closing Remarks • There are huge potentials for sustainable product innovation in design and processing SMEs; • There is a need for national capacity building in VN, Laos and Cambodia on sustainable product innovation; • Policy should be made for encouraging sustainable product (labeling, economic instruments, etc.); • Awareness of consumers should be raised for market pull effects.

21. Vietnam Cleaner Production Centre 4th floor C10 Bldg Hanoi University of Science & Technology Dai Co Viet Road, Hanoi – VIETNAM Tei; (84-4) 3868 4849; Fax: (84-4) 3868 1618 Email: vncpc@vncpc.org; Website: www.vncpc.org Thank you!