SME Cluster Development Project gets more capital

The project, sponsored by the United Nations Industrial Development Organization (UNIDO), will have its deadline extended till December 31, 2013.

Under the framework of the project, UNIDO wants to support the development of SME clusters in Viet Nam through the UNIDO cluster methodology combined with tailored technical assistance and the promotion of business partnerships with Italian industries and clusters.

The project is entirely funded by the Government of Italy with € 3 millions, and has the Enterprise Development Agency under the Ministry of Planning and Investment as the national partner.

UNIDO began with mapping small and medium enterprise clusters in Viet Nam and selecting three target clusters with a high development potential. These include a textile and garment cluster, a footwear and leather processing cluster, and a wood processing and furniture cluster. The industries were selected as they are among five top exporters of Viet Nam.

The development of SME clusters, a sectoral and geographical concentration of enterprises which produce and sell a range of related and/or complementary products, will help Viet Nam’s businesses raise their competitiveness, integrate more deeply into the world economy and contribute to the country’s sustainable growth.

These clusters can increase competitiveness for local enterprises and living standards in the territories where they are located. They also help lower costs, promote trust among small businesses and identify a shared interest and vision.

The project is currently assisting the garment, footwear and furniture sectors in Ha Noi, Hung Yen, Ho Chi Minh City and Binh Duong./.

By Thuy Dung