Danes to spend $400m on global competition

A Danish-funded programme that helps private companies become more globally competitive is expected to begin its second stage after approval from the Danish and Vietnamese governments.

The programme, the Global Competitiveness Facility for Vietnamese Enterprises, is funded by the Danish International Development Agency.

The agency plans to fund VND210 billion (US$11 million) to support Vietnamese companies during the programme’s second stage, project advisor Amarnath Reddy said.

Begun in 2006, the programme helps companies access information, improve business services and strengthen business associations.

Speaking at a meeting yesterday in HCM City with the Viet Nam Plastic Association, Reddy said in the last five years the project had supported 96 projects worth a total of VND135 billion ($7.06 million) in Nghe An, Khanh Hoa, Lam Dong and Ha Tay provinces.

Four projects were under the National Business and Trade Initiative Programme, and 29 were under provincial business associations.

In addition, business development support was given to 63 companies involved in various sectors, including aquaculture, bamboo and rattan, fisheries, flower, handicrafts, tea, tourism and vegetables.

The second stage of the project, expected to start in 2011 and conclude in 2013, will help export companies develop their new business initiative ideas.

Forty projects

It will support 40 projects, with priority given to agriculture and farm produce, fisheries, seafood, handicraft and tourism, as well as sectors that employ many female workers.

The programme will provide up to 75 per cent of domestic and international marketing and advertising costs, and 40 per cent of capital to buy manufacturing equipment to make new products.

The programme will start to receive application for the fund next January.

At the meeting, Do Duy Phuoc, director of Phuoc Kim Thanh Packaging Company said with help from the programme, the company developed its capacity to produce packaging for export-bound vegetables and fruits.

“We now have the capacity to run a modern production line and make products that meet packaging needs of local farmers and companies,” Phuoc said.

“The plastic industry is expected to meet the export target for this year of more than $800 million,” said Nguyen Huu Khue, deputy chairman of the Viet Nam Plastic Association.

Earnings from plastic exports in the first half of the year were $467.5 million, an increase of 25.6 per cent over the same period last year.

Vietnamese plastic products are sold in 100 countries and territories. Japan is the largest importer.

There are more than 1,000 enterprises in the plastic industry, employing more than 200,000 workers nationwide. — VNS