Trade

1
Trade Industry Program Vietnam - Norway

• Presentation 14.03.07
• Harald Naevdal

2
TIP Objectives

• Overall objective
• to contribute to reducing poverty by promoting
  sustainable economic growth and social
  development in Vietnam.
• The Main objectives are to contribute to
  increased business activity, sustainable growth
  and increased employment in Vietnam through
• Transfer of Norwegian technology, knowledge and
  production know-how, and export of Norwegian
  products and services in accordance with the TIP
  project guidelines
• Better access to and increased trade to the
  Norwegian market for Vietnamese products and
  services
• Vietnamese resources and know-how that could
  facilitate Norwegian companies in their
  production and marketing of products and
  services.
• The program is bi-directional
• 3 years program funding is provided by Norad

3
TIP has a sector focus

• TIP will have a proactive approach towards the
  following business sectors
• Maritime
• Marine
• Oil Gas
• Hydropower
• Trade
• Environmental protection (related to the above
  sectors))
• Companies with products and services outside the
  above sectors can also participate in the
  program. However, there will be no proactive
  approach towards such participants

4
Company objectives and forms of cooperation

• Objectives
• long-term and committing
• should include an element of investment
• (e.g. financial investment, resource utilisation,
  local establishment, technology transfer,
  committed import to Norway, etc)
• the intention of establishing active business
  relations and prepared to take risks in the
  individual projects
• Forms of cooperation
• Flexible
• Project cooperation (long term and/or large
  projects), outsourcing, licensing, representation
  office, sales-, distribution- or service office,
  100 foreign owned company establishment,
  joint-venture, trade (i.e. import to Norway).

5
A focus on Corporate Social Responsibility

• The TIP will emphasise the participants
  attention towards
• Social Accountability and Ethical behaviour
• Conditions of Employment and fair salary
• Work Environment
• Child Labour
• Discrimination (Female equality perspective, etc)
• Anti-corruption
• Occupational Health and Safety
• Environment

6
The TIP project organisation
7
Financial qualification criteria

• Norway Vietnam
• 1) Equity ratio gt20 gt10
• 2) Annual Turnover NOK 10 Millions NOK 1
  Million
• Profit after tax gt 5 of turnover (aver.)
  Positive for the
• last 2 years
• Been in operation and have income from sales for
  at least 3 years (2 years in Vietnam)

8
Management qualification criteria

• Open-minded, dynamic management, preferably with
  experience from international business
• Proactive behaviour with a long term business
  perspective
• Able to ask critical questions and say No
• Good English communication skills, and preferably
  experience from international cooperation
• Acceptable practical understanding and attitude
  towards CSR. (access to the companys employment
  contracts).
• Willing to provide lists describing share owners
  and board members
• Willing to provide annual financial statements
  for the last 3 years, signed and approved by a
  certified public accountant (in Norway), and
  annual financial statements for the last 2 years
  signed and approved by an independent certified
  accountant (in Vietnam).
• We will apply the governing principle of zero
  tolerance with regard to corruption, and all
  participating companies are obliged to apply the
  same principle during their TIP Program
  participation.

9
Organisational qualification criteria (VN
companies)

• As a part of the approval process the Company
  Profile shall be developed and passed over to the
  NCP for quality check and approval. The companies
  passing this phase shall have the following
  characteristics
• Have relevant market access in the Vietnamese
  market, competence, product/technology skills for
  the Norwegian companies and relevant production
  capacity.
• Have the required organisational and personal
  qualifications.
• Have a strategic written decision from the Board
  of Directors or Owners that international
  cooperation and/or partnership is desirable to
  achieve future growth
• Is considered by the SP/NCP to have sufficient
  financial strength to establish a collaboration
  agreement,
• Have understood and accepted the program and the
  process
• Will allocate sufficient time for the program at
  their management level
• Is willing to provide the SP with a customer
  reference list of, especially related to
  international customers.
• Have implemented a quality system, or have
  concrete plans for implementing one.
• Have understood and accepted the consultants
  (SPs) role in the process

10
Overall considerations

• The criteria related to the financial
  qualification of a company are guidelines and not
  absolute requirements. In the case that the above
  criteria are not fulfilled a final decision
  regarding program participation will be made on a
  case-by-case judgement, based on a discussion
  between NCP, NKP and SP.
• Evaluation of acceptable solidity has to be done
  from case to case as the requirements for a good
  capital base will differ depending on the actual
  type of project and co-operation, e.g. a
  licensing or an outsourcing arrangement from
  Norway will require much less than a joint
  venture involvement.
• Hence, it is necessary to discuss the project in
  more detail with each respective company in order
  to make an overall assessment of whether the
  company has the necessary financial strength to
  enter into a collaborative arrangement or not.
• The other assessment criteria should be checked
  out and given relevant considerations.

11
TIP process (Norwegian company)

• Proactive identification of companies within the
  selected sectors
• Qualified Norwegian companies provide Company
  profile for partner search in Vietnam
• Norwegian company visit Vietnam and meet
  identified partners
• Norwegian company select Vietnamese partner and
  invite the partner to visit Norway
• Vietnamese partner pay only 20 of cost for 7
  days visit to Norway, estimated to USD 800. Rest
  of program participation is free of charge.
• Together the partners develop a Business
  Cooperation Concept Study
• 6 months follow-up assistance from Embassy
  National Contact Point to support the parties in
  entering into a formal cooperation agreement

12
TIP process (Vietnamese company)

• Proactive identification of companies within the
  selected sectors
• Qualified Vietnamese companies provide Company
  profile for partner search in Norway
• Vietnamese company visit Norway and meet
  identified partners
• Vietnamese company select Norwegian partner and
  invite the partner to visit Vietnam
• The Norwegian partner pay 40 of cost for 7 days
  visit to Norway, estimated to USD 1600.
• Together the partners develop a Business
  Cooperation Concept Study
• 6 months follow-up assistance from Embassy
  National Contact Point to support the parties in
  entering into a formal cooperation agreement