ASEAN MSMEs Enhance Export Capacities Through the Training Course
30 March 2020

ASEAN MSMEs Enhance Export Capacities Through the Training Course

By JAIF Management Team

Over 90% of enterprises in ASEAN countries are micro, small and medium enterprises (MSMEs), accounting for 50% to 90% of employment in the region. MSMEs are important “engines of growth” in ASEAN economies, contributing up to 50% of GDP of ASEAN member states. 1 Although MSMEs contribute significantly to the ASEAN economy, at present, they are often subordinate at the lower layer of the supply chain as subcontractors to major overseas manufacturers. Therefore, the revenue MSMEs receive from overseas manufacturers is often only 20-30% of the product price. The lack of information, access to market, and technology of MSMEs have been the issues hindering development of MSMEs.

The project “ASEAN Training Courses to Build and Enhance Export Capacities for SMEs” consisted of workshop in Ho Chi Minh City, site visit to local MSME and publication of guidebook on export capacities for MSMEs in December 2017. Total of 85 participants attended from 10 AMSs. The project contributed to enhancing the export capabilities of ASEAN MSMEs and related associations, building network among the stakeholders and enabling MSMEs to access global economies.

   

Testimonial from

Vu Lien Huong

Head of Division, Multilateral Trade Policy Department, MOIT of Viet Nam

The training highlighted ASEAN-Japan cooperation and encouraged the participants to assess their products toward Japan’s requirements and use tariff based on ASEAN-Japan Comprehensive Economic Partnership (AJCEP) Agreement, which was really useful.

Testimonial image 1Huong sharing her experiences and takeaways from the training ©JAIF Management Team
Testimonial image 2The Reference Guidebook for ASEAN SME Exporters ©ASEAN Secretariat

MSMEs usually focus on domestic markets and developing their business overseas is a challenge. By strengthening the export capacities of these MSMEs, this will realize job creation and sustainable development of the country and the ASEAN region” says Vu Lien Huong, Head of Division for APEC and International Economic Cooperation, Multilateral Trade Policy Department, Ministry of Industry and Trade (MOIT) of Viet Nam, who was both the participant and the proponent of this project. Reflecting on the 3-day workshop, the most practical part was the exercise on Tariff Finder and Rules of Origin (ROO) when the participants were divided into groups according to category of export and studied how to define the Harmonized System (HS) code. She also learned from the training that innovation and digitalization of MSMEs is the key to kick start their business.

The Reference Guidebook for ASEAN SME Exporters published as one of the outputs of the project is a helpful tool for MSMEs that explains step-by-step procedures when they export their goods and services. Huong and her colleagues find the guidebook useful as a training material when MOIT implements similar workshops for the local MSMEs in Viet Nam. The guidebook is currently being translated into Vietnamese under the ministry’s own initiative and will be published on their website in 2020.

Testimonial from

Hoang Thi Ngoc Mai

Deputy Head of APEC and International Economic Cooperation Division of MOIT

Testimonial image 1©JAIF Management Team

Hoang Thi Ngoc Mai, Deputy Head of APEC and International Economic Cooperation Division of MOIT, was impressed the most about the diversity of the workshop participants ranging from government officials to private sector and MSMEs-related associations. She found the session on how to best utilize existing FTAs in export for MSMEs informative. Inputs provided by the Japanese expert on regulations for imports and exports were especially eye-opening to learn about the high standard of quality control and how MSMEs of ASEAN can penetrate into the Japanese market. “MSMEs who participated in the training were very happy for informative sessions and they gave feedbacks requesting for similar workshops covering more technical and specific issues in the future”, she claims.

Testimonial from

Dinh Thanh Son

General Policy and Project Division of MOIT

Testimonial image 1©JAIF Management Team

Dinh Thanh Son , Official of General Policy and Project Division of MOIT, reflects back that “my participation in the workshop gave me the opportunity to join the negotiation table of the Trade in Goods with partners like Japan.” Most notable event was the half-day site-visit to a local MSME that produces processed fruits and vegetables for exports to EU, USA, Japan and other countries. Observing how a local MSME actually operates in the field has broadened his views and changed his day-to-day involvement with his work. He also appreciates the chance to build network among the AMS, which he still maintains to exchange information when meeting with the focal points at ASEAN ministerial meetings.


The participants evaluate the workshop to have positive impacts on the growth of MSMEs. They confidently express that MSMEs’ contribution to the economic growth is undeniable. The highlight of the training was sharing of case studies by the speakers from Japan and ASEAN on how MSMEs can best utilize AJCEP Agreement and other existing FTAs. This enabled MSMEs to expand their business to international markets, especially Japan. After the workshop, more active participation of MSMEs is observed in getting information about tariff reduction using the advantage of FTAs.

Dinh Thanh Son, General Policy and Project Division of MOITPhoto from the ASEAN Training Course to Build and Enhance Export Capacities for SMEs
©MOIT of Viet Nam

Japan supports development of MSMEs especially to increase MSME’s competitiveness in regional production networks through tailored programmes for AMS based on ASEAN Strategic Action Plan for SME Development 2016-2025 (SAP SMED 2025). Please see our Sector Brief for more information on JAIF support for MSMEs. This project was supported by the Government of Japan through the Japan-ASEAN Integration Fund (JAIF).

 


1 Overview: SME Development in ASEAN, retrieved from: https://asean.org/our-communities/economic-community/resilient-and-inclusive-asean/development-of-micro-small-and-medium-enterprises-in-asean-msme/
2Part of information in the article was taken from an interview with Mr. Le Xuan Duong, Director of Vietnam leather, Footwear and Handbag Association (LEAFASO). LEAFASO, Ho Chi Minh City branch was one of the participating organizations of the training.


Sectors

MSMEs

Funding Framework

ASEAN-Japan Comprehensive Economic Partnership (AJCEP)

Related Beneficiaries' Voice

ASEAN Mentorship for Entrepreneurs Network (AMEN) Drives the Sustainable Development of ASEAN Economy

ASEAN Mentorship for Entrepreneurs Network (AMEN) Drives the Sustainable Development of ASEAN Economy

Entrepreneurship lies at the heart of economic growth and Micro, Small, and Medium Enterprises (MSMEs), which plays a fundamental role in driving innovation and fostering economic integration within the ASEAN region. The 43rd ASEAN Summit, which was held in Jakarta, Indonesia in September 2023, underlined the potential of MSMEs of ASEAN and encouraged member countries to support the strengthening of MSMEs as an inclusive business model and to further empower them for equitable growth. The need to promote business inclusivity in the ASEAN’s approach is within areas such as digitalisation, green economy, and supply chain resilience. In the diverse landscape of ASEAN, entrepreneurs encounter various challenges ranging from digital literacy to the need for sustained mentorship. Recognising the problems entrepreneurs face, the ASEAN Mentorship for Entrepreneurship Network (AMEN) was established to provide comprehensive mentorship, empowering entrepreneurs to navigate the complexities of business with confidence and resilience. AMEN addresses the situations above by offering tailored mentoring programme designed to uplift entrepreneurs at every stage of their journey. Several AMEN mentees shared their insights into how this initiative significantly impacted their entrepreneurial journeys through modules, mentorship, and networking.
19 February 2024
ASEAN Cultivates Mentors through ASEAN Mentorship for Entrepreneurs Network (AMEN)

ASEAN Cultivates Mentors through ASEAN Mentorship for Entrepreneurs Network (AMEN)

The micro, small and medium enterprises (MSMEs) play a considerable role in economic integration within the ASEAN region. Although MSMEs vary in size and capacity, many micro and small enterprises (MSEs) are struggling to stay afloat due to lack of funds and resources. An effective means to address this common plight of MSEs across the region is mentoring the MSMEs which is an institutionalized capacity building program to scale-up their operations and improve their profitability and sustainability. There existed many MSME training programs implemented by the governments, but there was no mentoring program that provided comprehensive or continuous guidance from A to Z, claims Merly M. Cruz, Senior Adviser of the Philippines Center for Entrepreneurship (PCE-Go Negosyo). Merly herself had worked on the government side as a former Undersecretary of the Regional Operations Group (MSME Development Division) of the Department of Trade and Industry (DTI), Philippines. In 2016, the PCE teamed up with the DTI to launch the “Kapatid1 Mentor Micro-Enterprise (KMME)” Program in the Philippines, a mentorship program for MSME capacity development that incorporates Private Public Partnership (PPP). By incorporating PPP, the PCE recruited mentors from private sector while using DTI’s nationwide network. Also with the back-up from the Government, their policy can ensure sustainability of the mentorship initiative.
30 December 2020
ASEAN Farmers Learn to Adopt Organic Farming

ASEAN Farmers Learn to Adopt Organic Farming

More and more ASEAN farmers have realized the sustainable benefits of organic farming—reduced expenses, higher yields, increased income, and safer and healthier food for the community. Let’s hear from Dewey, Moses, and Renato, organic farmers from the Philippines, on why and how they adopted the organic agriculture farming system1. Involving farmers as the ultimate beneficiaries of organic agriculture farming system is not only seen as an attempt to bridge theory and practice, but also to get them engaged and invested in the initiative.
30 March 2019