Project Title

Promoting the Participation of SMEs in Textile and Apparel Global Value Chains 

Project Year

2015   

Project Number

CTI 07 2015 

Project Session

Session 1   

Project Type

Standard 

Project Status

Completed Project   
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Project No.

CTI 07 2015 

Project Title

Promoting the Participation of SMEs in Textile and Apparel Global Value Chains 

Project Status

Completed Project 

Publication (if any)

 

Fund Account

General Project Account 

Sub-fund

None 

Project Year

2015 

Project Session

Session 1 

APEC Funding

175,708 

Co-funding Amount

33,095 

Total Project Value

208,803 

Sponsoring Forum

Committee on Trade and Investment (CTI) 

Topics

Trade Facilitation 

Committee

Committee on Trade and Investment (CTI) 

Other Fora Involved

 

Other Non-APEC Stakeholders Involved

 

Proposing Economy(ies)

Viet Nam 

Co-Sponsoring Economies

Indonesia; Korea; Malaysia; Papua New Guinea; Peru; Thailand; United States 

Expected Start Date

01/01/2015 

Expected Completion Date

31/12/2016 

Project Proponent Name 1

Pham Quynh Mai 

Job Title 1

Deputy Director General 

Organization 1

Ministry of Industry and Trade 

Postal Address 1

54 Hai Ba Trung street, Ha Noi, Viet Nam  

Telephone 1

84-4 22205522 

Fax 1

Not Applicable 

Email 1

maipq@moit.gov.vn; patbeo81@gmail.com 

Project Proponent Name 2

Not Applicable 

Job Title 2

Not Applicable 

Organization 2

Not Applicable 

Postal Address 2

Not Applicable 

Telephone 2

Not Applicable 

Fax 2

Not Applicable 

Email 2

Not Applicable 

Declaration

Pham Quynh Mai 

Project Summary

In line with instructions of APEC Economic Leaders of 2014, where Leaders “endorsed the Terms of reference of Promoting SME’s Integration into the global value chains, and welcomed the launch of the related activities, this project focuses on textile and apparel industry. There are 2 proposed activities under this project:

(1) Production of a report, which contains some case studies of APEC member economies on the status of SMEs participating in GVCs in the textile and apparel industry (with recommendations); and

(2) Organisation of a  workshop to present the outcomes of the case studies, and discuss recommendations and way forward to facilitate and encourage SME’s integration in the global textile and apparel value chains.

Project timeline: June 2015 – First quarter 2016. The project report and recommendations will be submitted to APEC MRT 2016.

Relevance

Relevance - Benefits to Region: APEC is a region where Global Value Chains (GVCs) have been evolving in an unprecedented way and changing the overall industrial landscape. According to a recent report by APEC Policy Support Unit (PSU) (2013), multi-national corporations (MNCs) have become the major players in managing the GVCs. Small and medium-sized enterprises (SMEs) on the other hand, are engaged in the business activities that link up with MNCs, usually providing goods or services that are used to produce the final products.  Nevertheless, SMEs have often been left out of the network of GVCs as the outsourcing of production processes and cross-border trade takes place mostly within networks of MNCs.

Realizing that fact and in order to tackle this issue, in 2014, APEC Economic Leaders “endorsed the Terms of Reference of Promoting SME’s Integration into the global value chains, and welcomed the launch of the related activities”, in order to explore ways in which policy-makers of APEC economies can contribute to increased SMEs participation in GVCs of major industries through positive trade and investment outcomes, while improving their competitive edge in the international markets.

Viet Nam is participating as a Sector Lead in the area of textile and apparel while Korea takes the leading role in the overall initiative on “Promoting SME’s Integration into the global value chains”. Focusing on textile and apparel industry, policymakers as well as stakeholders from the private sector and academia will be able to gain a deeper understanding of GVCs in the sector and come up with more practical solutions to promote SMEs’ integration into GVCs through positive trade and investment outcomes.

In order to implement this project, Viet Nam proposed 2 activities:

-  Production of a report, which contains some case studies of APEC member economies on the status of SMEs participating in GVCs in the textile and apparel industry (with recommendations);

-  Organisation of a workshop to present the outcomes of the case studies, and discuss recommendations and the way forward to facilitate SME’s integration in the global textile and apparel value chains through positive trade and investment outcomes.

Given the important role and deep involvement of women in economic and social activities, especially in SME development, the proposed project will also consider the issue specific to women-led SMEs.

Relevance - Rank: This project falls under rank 1, as (i) it will contribute to SME development and (ii) it is one integral part of the APEC Strategic Blueprint for Promoting Global Value Chains for Development and Cooperation (Assist SMEs to benefit from GVCs).

Objectives

a) To facilitate the integration of SMEs into GVCs in the textile and apparel industry through positive trade and investment outcomes and building their capacity for sustainable and inclusive business growth;

b) To identify the main barriers to trade and investment, such as tariffs and Non-Tariff Barriers (NTBs), that prevent SMEs from participating in GVCs in the textile and apparel industry;

c) To develop policy recommendations and concrete action plans that APEC economies can undertake to facilitate the integration of apparel and textile SMEs into GVCs, resulting in  positive trade and investment outcomes and improved competitiveness.

Alignment

First, this project is in line with the instructions of APEC Economic Leaders of 2014, where Leaders “endorsed the Terms of Reference of Promoting SME’s Integration into the global value chains, and welcomed the launch of the related activities.” They also instructed officials to make efforts in advancing this work.

Second, this project also conforms to the instructions of APEC Ministers. At the APEC Ministerial Meeting of 2014, APEC Ministers endorsed the initiative on Promoting SME’s Integration into Global Value Chains in Major Industries and welcomed the voluntary participation of leading economies in the key industrial sectors. They encouraged APEC economies to make concerted efforts to bring concrete policy recommendations that can facilitate the integration of SMEs into GVCs.

This project will explore barriers to trade and investment, such as tariffs and Non-Tariff Barriers (NTBs), in the textile and apparel industry in APEC economies. Through the experience shared and analysis on the case study conducted during the workshop, participants will be able to champion trade- and investment-related policy recommendations to their respective governments.

Last but not least, the project is expected to directly contribute to the APEC Strategic Blueprint for Promoting Global Value Chains for Development and Cooperation, which was endorsed by APEC Economic Leaders in 2014.

TILF/ASF Justification

Not Applicable.

Beneficiaries and Outputs

Outputs: One of the outputs will be 4 case studies in selected APEC member economies. It is expected that case studies will be conducted by independent researchers regarding SME’s integration into GVCs in textile and apparel in Latin America, Northeast Asia, and ASEAN (APEC members; 2 case studies in ASEAN). Researchers are encouraged to suggest recommendations in their case studies. All case studies will be compiled in a paper, which will be discussed at the Workshop held as a part of this project.

Another output is a 2-day Workshop held in Ho Chi Minh city, Viet Nam in 2016. The Organizing Committee will invite consultants to come and present their case studies (output 1). In addition, suitable speakers from international organizations, agencies, academics and government sector will also be invited to (i) comment on the case studies, (ii) share information and best practices, (iii) identify key trade and investment policy recommendations, promoting SMEs’ increased integration into GVCs in textile and apparel. Furthermore, the Workshop is an opportunity for networking and matching potential partners between TNCs and SMEs in the industry of textile and apparel. There will also be a session on lessons learned and recommendations suggested by the Workshop’s attendants. These findings will be compiled for sharing and dissemination to APEC related fora and stakeholders.

The 3rd output of the project is an SMEs’ exhibition. This event is also an opportunity for networking and matching potential partners between TNCs and SMEs in the industry of textile and apparel.

A report will be produced after the Workshop as one of the project’s outputs. This report may be composed of, but not limited to, the following sections: introduction of the project; briefings of the presentations made at the Workshop; briefings on discussions at the Workshop (possibly including best practices and challenges in facilitating the global apparel value chain); trade and investment policy recommendations (that reduce tariff and NTBs for SMEs in the textile and apparel industry)made by Workshop attendants and the project consultant. The final report may also design future APEC activities for further collaboration in this area.

Outcomes: Workshop participants will gain an increased awareness and knowledge on integrating SMEs’ participation in GVCs in the textile and apparel industry. Workshop participants will be encouraged to propose trade and investment policies that reduce any tariff and NTBs preventing SMEs from integrating into the GVCs in the textile and apparel industry.  They will have the opportunity to raise any useful trade and investment policy suggestions in practice once returning to their home economies or organizations.

Similar Workshops will be held in the future in order to bridge TNCs and SMEs, promoting potential partnering among them in GVCs in textile and apparel.

A report with 4 case studies of this project will be used as inputs for the overall project “Promoting SMEs’ Integration into Global Value Chains in Major Industries” (initiated by Korea). Recommendations of this sectoral project will be part of the overall project, which will be submitted to MRT and/or AMM for considerations and instructions. APEC members, in accordance with their domestic circumstances, may pursue relevant trade and investment policy actions to reduce tariffs and NTBs in order to enable  SMEs’ integration into GVCs in the textile and apparel industry.

Beneficiaries: 

a) Public Sector (Government agencies in charge of trade, industry, investment, SMEs etc).

On the public side, SMEs GVC related-policy makers will be able to formulate reasonable policies to satisfy both SMEs and MNCs interests.

b) Industrial Sector (MNCs, SMEs and related associations in textile and apparel or light industries)

Various stakeholders concerned will have a better understanding of GVCs and how to integrate principles and experience into their corporate strategy to ultimately capture larger gains in the GVC.

c) Academic Sector (in the areas of trade, industry, SMEs, investment etc)

Researchers and professors on related subjects will have a better perception on the concept of GVCs and SMEs participation for further research and studies.

Dissemination

The Organizers intended to publish 160 copies of the report of 4 case studies. This publication will be made in hard copies and CD-ROMs format and will be distributed to Workshop participants and visitors of SMEs’ exhibition. Such hard copies and CD-ROMs will also be sent to the APEC Secretariat for records and distributed at the final GVC Conference[1]. Electronic publication will also be used to disseminate the Workshop’s documents widely. APEC’s official website will be the main one to upload the documents. Other Vietnamese Ministries’ websites (e.g: Ministry of Industry and Trade) could also be used to disseminate the information with hyperlink to APEC website. Other means of dissemination such as press release and social media will also be used.

The project targets  governments officials, who are directly or indirectly involved in the process of trade- and investment-related policy making in textile and apparel industry in particular; SMEs involve in global textile and apparel value chain; local and international experts in global textile and apparel value chains; and other types of business sector who are directly or indirectly engaged in the process of facilitating and promoting global textile and apparel value chains; as well as interested academic representatives.

No intention to sell outputs arising from this project.

[1] According to paper 2014/CSOM/045 “Terms of Reference – Promoting SMEs’ Integration into Global Value Chains in Major Industries”, one final GVC Conference will be held. All five industries (automotives, IT/electronics, textile and apparel, healthcare, agribusiness) will join and share the main findings and policy recommendations from their work.

Gender

Gender issues are addressed by the project proponent. Women are involved in the development of this proposal, and the Project Overseer is a woman. Both men and women will get equal opportunity to participate in the project implementation, including in the process of preparatory stage, consultation and direct labours, etc. In addition, to address gender concern and make sure that men and women are engaged efficiently in the Workshop, the evaluation form delivered at the end of the Workshop will include information on gender to aggregate for project assessment.

Given the important role that women play in the apparel sector (according to the World Bank, women constitute 70 to 80 percent of workers employed in the apparel industry), this proposal will indirectly benefit women. More effectiveness in SME’s integration in the global textile and apparel value chain has the potential yield proportionally positive economic impacts for women because the SMEs in this industry largely employ women. 

Therefore, in the case studies and presentations made at the Workshop, researchers and speakers will be encouraged to integrate gender into GVC textile and appareal assessments with the participation of SMEs to understand how men and women are employed in SMEs, identify gender-related barriers that lower efficiency as well as understand gender inequalities related to activities in GVC in textile and apparel.

Work Plan

Timeline

Actions

February – June 2015

Submit concept note (then a full project proposal) to APEC for consideration and approval

June 2015

BMC approval

July – November 2015

Development of case studies in selected APEC member economies (expectations: from Latin America, Northeast Asia, ASEAN).

October - November 2015

Draft the Workshop agenda and circulate it to economies for comment. Economies are strongly encouraged to provide comments on the draft agenda to the Workshop Organizers.

Incorporate the comments and finalize the agenda to reflect all interests by stakeholders.

The Workshop and SMEs’ exhibition location will be determined and finalized no later than December 2015.

Invite and secure speakers for the Workshop, from international organizations, research institutes and APEC economies.

Promotion and dissemination of information on the Workshop.

December 2015 – January 2016

Invite participants from relevant APEC Ministries/ agencies - academia and research institutes in APEC member economies.

Confirmation of the event details (a General Information document is circulated to CTI representatives for nominating Workshop participants).

Preparation work by the Organizing Committee (logistic and documentation)

February (or March 2016)

Implementation of the 2-day Workshop

March – April 2016

Upon conclusion of the Workshop, event organizers will work with co-sponsors, speakers and other participants to draft a report for the APEC CTI.

Risks

The risks which may involve in implementing this project are as follows:

Risk

Description

Mitigation

Researchers to undertake case studies

Selection of suitable and  prominent candidates with vast experience

Early consultation with co-sponsor economies and interested stakeholders to seek for qualified researchers.

Speakers

Selection of suitable and  prominent candidates with vast experience

Early consultations with international organizations, agencies, and APEC economies in identifying prominent speakers

Cancellation of speakers

Secure back-up speakers for the Workshop and send immediate invitations when there is a cancellation of speaker(s)

Participants

To get quality and quantity from APEC economies

-        Consult with co-sponsoring economies to set general criteria for participants and highlight it in the General Information document sent to CTI representatives for nominating Workshop participants;

-        If possible, ask APEC travel-eligible economies to designate one delegate from policy-making sector and the other delegate from apparel association(s) or companies.

Awareness

Dissemination and marketing of the event

To actively market and promote the event through CTI representatives

Logistics and facilities

Restricted selection based on capacity and budget

Early reservation and planning

Monitoring and Evaluation

The Workshop’s Organizers will work closely and regularly with co-sponsor economies in determining the content of the agenda, selection of speakers, moderators, experts and participants for the Workshop. The project will adhere strictly to APEC project implementation procedures, including the timeline of actions.

An evaluation form will be prepared and distributed to all participants as well as the speakers, moderators and experts to assess the effectiveness of the Workshop with respect to the relevance on the topics, presentations by speakers, ideas generated, overall impact and suggestions for further improvement for future projects. The organizing committee will compile all comments to be  reflected them in the final report, which will be submitted to CTI for consideration.

The report and Workshop documents will be made available to Workshop participants and the APEC Secretariat, as well as uploaded to the APEC Publication Database. The draft report on the outcome of the Workshop will be sent to the APEC Secretariat for review before finalization.

In order to measure progress, project outcomes and impacts/ successes, various indicators may be used in the forms of pre-event survey, after-event evaluation form, project summary report etc. In particular:

Proposed activity

Potential indicators

Report

At least 4 case studies conducted by independent consultants.

Means: survey, data collection and analysis, desk study etc

Workshop

(To announce draft report and discuss recommendations from the report and next steps)

Means: Workshop, evaluation form, participant statistics (number, gender, economies, level), stakeholder feedback (comments or grades on how well the project met its objectives), number of recommendations adopted, total  documents distributed etc.

It is expected that the Workshop will attract 100 participants.

Linkages

Engagement: This project is one of the five pillars under the APEC initiative on “Promoting SME’s Integration into the Global Value Chains”. Committee on Trade and Investment (CTI) will take the lead in creating a platform to facilitate the global apparel value chain. Through this initiative, it will engage with other APEC stakeholders from SMEWG, ABAC, PPWE etc. There will also be involvement from non-APEC stakeholders such as International Textile and Apparel Association, OECD etc. The Organizing Committee will work with stakeholders to identify potential areas for further cooperation, in which avoidance of duplication will be seriously considered and dealt with. In this light, the Organizers will work with such international organizations to make sure that those organizations’ previous and on-going work or outcomes will be shared with APEC participants in a selected and organized manner. Their involvement and presentation will be tailor made based on the expectations of participants’ surveys in order to add value to the Workshop. In addition, during the implementation process, information will be disseminated to these fora to encourage their participation in the workshop.

Previous work: There have been several projects on global value chains, namely:

-   Building Asia Pacific Partnership through Global Value Chain Collaboration (2013);

-   Workshop on facilitating Global Apparel Value Chain in APEC Region (2014);

-   High Level Public-Private Forum on Cold Chain to Strengthen Agriculture and Food’s Global Value Chain (2014);

-   APEC SME Business Matching and Internship Consortium for Global Value Chain Integration (2014);

-   Global Value Chain Workshop (2009).

This newly proposed project is in line with previous and current work on global value chains, butthis is the first project with special priority given to promote SMEs’ integration into GVCs in textile and apparel.

APEC’s comparative advantage: APEC is the best source of funding for this project because APEC persistently and strongly promotes SMEs’ integration into GVCs. In 2013, APEC Leaders agreed to take further steps to “enhance our SMEs’ global competitiveness by improving access to finance and markets, supporting entrepreneurship, accelerating the growth of start-ups, strengthen capacities for business continuity and empowering our SMEs to expand into international markets and to participate in global supply chains.” This project will explore ways to contribute to helping SMEs participate in GVS in textile and apparel and improve their competitive edge in international markets.

Sustainability

After the Workshop takes place, the Project Organizers will work with consultants, researchers and speakers to develop recommendations for concrete, future steps that are selected based on the input provided by the Workshop. These recommendations will be sent to CTI. CTI will consider and if possible, endorse the recommendations as well as the follow-up activities developed from the Workshop.

The Workshop materials will be available for use by participants, economies, stakeholders and beneficiaries long after the project has been completed, through its availability as a handout document and online at no cost on the AIMP. Further, the information and experience gathered at the Workshop will contribute towards developing economies’ capacity with regards to their participation in the global apparel value chain. In the short term, future actions on this area may lead to a development of a guidebook or reference toolkit on reducing tariffs and NTBs in order to further the facilitation of the global textile and apparel value chain. References, presentations, and recommendations from this Workshop may form a good baseline for such guidebook and/or toolkit. Workshop speakers and participants are also valuable resources to get inputs or experts for future survey, questionnaires, field trips or other activities. It is also expected that the lessons and experiences from Workshop will have positive impacts and enhance the effectiveness of the global apparel value chain. To measure such impacts, questionnaires circulated to Workshop participants will include a question on possible impact after the Workshop. In addition, evaluation of participants’ understanding and impacts will be conducted by a post-event survey after completion of the Workshop.

The outcomes and recommendations of this Workshop may be used as the input for future projects/ studies in CTI.

This project is one of the five pillars under the APEC initiative on “Promoting SME’s Integration into the Global Value Chains”.Report of this project, which will reflect the detailed work of this project, will focus on how to help SMEs to promote their integration into GVCs in textile and apparel from the trade and investment perspectives. Building on the work and inputs of this project (and other 4 sectoral projects under the initiative), Korea and lead economies of the APEC initiative on “Promoting SME’s Integration into the Global Value Chains” will develop one final report, synthesizing the analyses, findings and recommendations of the five industry workstreams and integrating them into a coherent, cross-cutting whole.

In addition, one final GVC Conference will be held, which all five industries can join and share the main findings and policy recommendations from their work.

Project Overseers

The Project Overseers will be:

1/ Ms. Pham Quynh Mai, Deputy Director General of the Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam. Mrs. Pham Quynh Mai got her Master Degree in the University of Sussex, the United Kingdom. She was the Vice Chair of the CTI in 2006. Since 2011, she has been the Acting Senior Official of Viet Nam for APEC in several APEC Senior Official Meetings.

Tel: 84-4-22205522; Fax: 84-4-22202525; email: maipq@moit.gov.vn

2/ Ms. Vu Lien Huong, Director, General Affairs Division, Multilateral Trade Policy Department, Ministry of Industry and Trade of Viet Nam

Tel: 84-4-22205422; Fax: 84-4-22202525; email: patbeo81@gmail.com

Cost Efficiency

Not Applicable.

Drawdown Timetable

Not Applicable.

Direct Labour

The Project Overseer seeks APEC funding to support 8 speakers in total for the 2-day Workshop.

Researchers: will be responsible for developing case studies (conduct researches, collect, analyze and synthesize data) as 1st component of this project. Each researcher will be contracted to undertake one case study. Duration for case study development is 4 months. Case studies have to be submitted to the Organizers by the end of November 2015 at the latest.(Lump sum: 10,000 USD for developing one case study), seek APEC funding.

Consultant: will work with speakers and discussants in drafting, revising and finalizing agenda; take notes; develop and finalize the report of the Workshop with recommendations; work as a coordinator in all substantive matters (240 hours total), seek APEC Funding.

Secretaries: will assist consultant to organize the Workshop (substance and paperwork) (350 hours total), self-fund.

Short-term staffs (clerks): will handle all logistics and most of administrative arrangements for the organization of the Workshop (450 hours total), seek APEC Funding.

Waivers

Waiver

Justification

Waiver for advance payment

Travel airfare, per diem for speakers, active participants – to encourage participation in the project.

Waiver to separate contracts of researchers

Due to time constraint of this project as well as differences in current situation in GVCs of textile and apparel in each APEC member economies, it will be difficult to call for bidding for an institution to take the role of making a single report that includes 4 case studies. Instead, PO requests to separate contracts of researchers so each researcher will be selected and contracted to develop one case study which focus on SMEs’ integration into GVCs in textile and apparel in one APEC member economies.

Waiver to separate contracts of researchers and consultants

i)  Roles and responsibilities of researchers and consultant are different. These persons are also differed in work duration and thus, cannot be put in a single contract.

ii) Project consultant and researchers work independently with close collaboration. From the nature of their work and for transparent purposes, it is reasonable to divide different contracts for these persons. It will also help to avoid burden to the consultant on financial and administrative work.

Fund 8 speakers for the Workshop

PO requests for funding of 8 speakers for both days. As the Workshop will last for 2 days, 8 speakers are needed: 5 speakers for the first day and 3 speakers for the second day. We need all speakers to stay until the end of Workshop because they will contribute to the recommendations of Workshop which is one of the most important outcomes of the project. This request with justification will be sent to PD in charge during implementation process.

4 researchers will be invited as speakers to present the outcomes of their case studies at the Workshop. Other speakers will be invited to (i) comment on the case studies, (ii) share information and best practices, (iii) identify key policy recommendations to promote SMEs’ integration into GVCs in textile and apparel. 

Are there any supporting document attached?

No 
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Version HistoryVersion History

Project No.

Project Title

Project Status

Publication (if any)

Fund Account

Sub-fund

Project Year

Project Session

APEC Funding

Co-funding Amount

Total Project Value

Sponsoring Forum

Topics

Committee

Other Fora Involved

Other Non-APEC Stakeholders Involved

Proposing Economy(ies)

Co-Sponsoring Economies

Expected Start Date

Expected Completion Date

Project Proponent Name 1

Job Title 1

Organization 1

Postal Address 1

Telephone 1

Fax 1

Email 1

Project Proponent Name 2

Job Title 2

Organization 2

Postal Address 2

Telephone 2

Fax 2

Email 2

Declaration

Project Summary

Relevance

Objectives

Alignment

TILF/ASF Justification

Beneficiaries and Outputs

Dissemination

Gender

Work Plan

Risks

Monitoring and Evaluation

Linkages

Sustainability

Project Overseers

Cost Efficiency

Drawdown Timetable

Direct Labour

Waivers

Are there any supporting document attached?

hdFldAdmin

Project Number

Previous Fora

Secretariat Comments

Reprogramming Notes

Consolidated QAF

Endorsement By Fora

PD Sign Off

Batch

Forum Priority

Committee Ranking Category

Committee Priority

PDM Priority

Priority Within Funding Category

Monitoring Report Received

Completion Report Received

PMU Field 1

PMU Field 2

PMU Field 3

On Behalf Of

Proposal Status

Originating Sub-Forum

Approval Status
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