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Small space furniture cluster IN Vientiane

Present by F4 group. Small space furniture cluster IN Vientiane. by Mr. Khao, Mr. Sak, Mr. Phom, Mr. Oaun (Bounkane). Target Cluster:. Small- space furniture Cluster in Vientiane. Location. Vientiane Vientiane is the capital of Lao PDR, which located in central of Laos

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Small space furniture cluster IN Vientiane

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  1. Present by F4 group Small space furniture cluster IN Vientiane by Mr. Khao, Mr. Sak, Mr. Phom, Mr. Oaun (Bounkane)

  2. Target Cluster: • Small- space furniture Cluster in Vientiane

  3. Location • Vientiane • Vientiane is the capital of Lao PDR, which located in central of Laos • an essential economic zone central of education(many colleges, school, NUOL) • more modern city than other, have many hotels, apartments (small room)… • there are a lot of SMEs who do furniture business • good infrastructure • transportation and logistic

  4. Description of Potential Members • Small Space Furniture was located in Chanthabouly District, which has more than 300 wood processing factories and furniture companies which employs about 5000 workforce. • Around the city there are transportation and logistic companies, textile factories; school and, Faculty of Forestry(National University of Laos) also were placed here which educate a lot of furniture workers

  5. Client Products and Services • Small space furniture • Flooring • Household items • joinery products • Design • Repair and maintenance service • Etc…….

  6. The Cluster Diagram

  7. The Cluster Diagram (Cont’) Products and Service of the SME cluster “ Small furniture space”

  8. Previous Cluster or EC Initiatives • Laos don’t have cluster yet

  9. The Diagnostiques Survey • Have many small size wood processing factories run by households • Mostly they make the same furniture with different quality • Low price (small value add) • Limited skill, low technology, learn by themselves • New Hotels, Restaurants, office…  increase SSF’s demand •  NEED to create CLUSTER

  10. Potential stakeholders • SMEPDO • TPPD( Department of Trade Promotion and Product Development) • LNCCI • National University of Laos, Faculty of Forestry • Lao Wood Industry Association and Lao Furniture Association • GIZ (representative from wood value chain) • TFT/WWF Lao Forest and Trade Platform • 3 SMEs (largest employment)

  11. Cluster design • Who will be in the Cluster - SME who have an experience at least 5 years - Employ at least 10 workers -

  12. Cluster design (cont’) • Incentives - Organizing a study and business tour in neighboring country(Thailand, Vietnam) - Promoting clusters - Tax incentive - Marketing and Promotion (Better trading environment) - Business matching - Grace period for land (10 years)/basic infrastructure - Soft loan - Technology transfer

  13. Cluster design (cont’) • Technical Assistance Needed - Training center - Design school - Faculty of Forestry (NOUL) • Financial Assistance Needed - SME fund - Lao Development Bank (SME bank)

  14. Cluster design (cont’) • Proposed interventions and Potential Sponsors - JICA - TDF - GIZ - WWF

  15. Conclusions and Recommendations • Conclusion - As mention above: now market need a lot of SSF - cluster has enough advantages to be able to remain competitive. Now we are ready to produce SSF • Recommendation - Government should provide: tax credits, innovative financing for furnishings manufacturers, investments in furniture research and development and job training to enhance the skills of legacy manufacturing workers - government could provide grants for researching innovation in furniture manufacturing.

  16. THANK YOU FOR YOUR ATTENTION KHOB CHAI LAI LAI

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