ENHANCING EXPORT CAPACITIES OF ASIAN LEAST DEVELOPED COUNTRIES FOR INTRA-REGIONAL TRADE

For more information, please contact:

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations.

Ministry of Commerce of the People’s Republic of China (MOFCOM)

MOFCOM is responsible for developing and supporting China's domestic and foreign trade, investments and international economic cooperation, in charge of China's efforts in providing aid to foreign countries and regions. The project is implemented with financial support from MOFCOM.

Trade support institutions in partner countries

The project is implemented in partnership with trade support institutions in Asian LDCs, including the Export Promotion Agency of Afghanistan (EPAA), the Dhaka Chamber of Commerce and Industry (DCCI), the Ministry of Commerce of the Kingdom of Cambodia (MOC), the Trade and Product Promotion Development (TPPD) of the Ministry of Industry and Commerce (MOIC) of Lao PDR, the Ministry of Commerce of Myanmar (MOC) and the Trade and Export Promotion Centre (TEPC) of Nepal.

The International Trade Centre (ITC) is the joint agency of the World Trade Organization and the United Nations. ITC is the only United Nations development agency fully dedicated to supporting the internationalization of SMEs.

ITC enables SMEs in developing and transition economies to become more competitive and connect to international markets for trade and investment, thus raising incomes and creating job opportunities, especially for women, young people and poor communities.

ITC delivers integrated solutions around a core set of six focus areas. These focus areas represent a coherent set of interventions with corresponding programmes that are adapted and customized into client-focused solutions:

Providing Trade and Market Intelligence,

Building a Conducive Business Environment,

Strengthening Trade and Investment Support Institutions,

Connecting to International Value Chains Promoting,

Mainstreaming Inclusive and Green Trade,

Supporting Regional Economic Integration and South-South Links.

Mr. Xuejun Jiang Chief Office for Asia and The Pacific E-mail: jiang@intracen.org

Ms. Sylvie Bétemps Cochin Trade Promotion Officer Office for Asia and The Pacific E-mail: betemps@intracen.org

P: +41 22 730 0111 F: +41 22 733 0811 www.intracen.org

Street address International Trade Centre 54-56 Rue de Montbrillant 1202 Geneva, Switzerland

Postal address International Trade Centre Palais des Nations 1211 Geneva 10, Switzerland

PROJECT PARTNERS

ABOUT ITC

PROJECT OBJECTIVES

China has become the second largest importing country in the world. This creates enormous export opportunities for other developing countries, especially least developed countries (LDCs) in Asia to which China has granted preferential market access.

The project aims to increase exports of small and medium sized enterprises (SMEs) from 6 Asian LDCs – Afghanistan, Bangladesh, Cambodia, Laos, Myanmar and Nepal – to China, to take advantage of Asia's largest and most dynamic import market, as a stimulus to boost intra-regional trade, by:

Increasing the availability and accessibility of trade-related information on the Chinese market targeting specifically SMEs in Asian LDCs;

Improving the capacity of SMEs to export to the Chinese market;

Identifying new business opportunities and partnerships with Chinese enterprises, and generating new exports for SMEs from Asian LDCs.

In January 2018, ITC published a guide on ‘How to reach Chinese e-consumers : A practical guide for small businesses‘ to help small businesses tap into the Chinese e-commerce market, which is the world’s largest.

This publication follows the guide on ‘E-Commerce in China: Opportunities for Asian Firms’ which was jointly published by ITC and the world leading e-commerce firm Alibaba in October 2016. The publication was launched by Ms. Arancha González, Executive Director of ITC, and Mr. Hongbing Gao, Vice President of Alibaba Group and Director of AliResearch, during ITC’s World Export Development Forum (WEDF) in Colombo, Sri Lanka. The publication provides an overview of China’s cross-border e-commerce, reviews the context of e-commerce development in China and identifies what is needed for SMEs to enter the Chinese market.

The publication was disseminated to more than 200 SMEs from 6 Asian LDCs and contributed to increase SMEs’ knowledge and skills on how best to use e-commerce to access the Chinese market. SMEs also benefited from practical coaching sessions and learned how to digitise and sell their products through online marketplaces.

More than 400 SMEs in 6 Asian LDCs were trained on Chinese market requirements, including Chinese market conditions and requirements, export procedures and insights on how to approach and transact with Chinese customers, including through e-commerce.

Exporters in Bangladesh, Cambodia, the Lao People’s Democratic Republic, Myanmar and Nepal are better positioned to access the Chinese market following practical coaching tackling some of the biggest challenges facing SMEs. Entrepreneurs attending the trainings also gained knowledge and skills related to creating business plans and identifying the required resources to enter the Chinese market.

A practical guidebook on how to export to China was produced with Chinese trade experts and disseminated during training workshops jointly organized with partner trade support institutions in Asian LDCs and China.

53 SMEs from 5 LDCs participated in 3 trade fairs, matchmaking events and met new potential business partners.

23 new business contacts were established between project-sponsored SMEs and Chinese buyers and USD 873,000 worth of business leads were initiated.

Eight tour operators from Bangladesh, Cambodia, Laos, Myanmar and Nepal promoted tourism to their respective countries at a dedicated ITC services booth during the CIFTIS 2016. In total, 65 business meetings took place between Chinese outbound and LDC’s inbound tour operators.

As part of the project, the company’s Managing Director participated in the 2016 China International Fair for Trade in Services (CIFTIS). After a preparatory training workshop on Chinese Outbound Tourism, he promoted his company and tourism in Laos to Chinese outbound tour operators during the event and made several contacts. As a result, he was contracted for an order worth USD 4,500 by a Chinese tour operator met during the event and established a pipeline of business partnerships.

Cross-border e-commerce helped SMEs in Asian LDCs reach the Chinese market

Exporters from Asian LDCs improved their capacities to export to China

‘I have more contacts with tour operators and suppliers thanks

to ITC support.’

Tour operator from Laos

400 SMEs from Asian LDCs trained on how to export to China

90% of the SMEs improved their knowledge and export capacities to access the Chinese market

18 training workshops held in 6 Asian LDCs jointly with partner trade support institutions

6 business guides and publications for SMEs on how to export to China

11 business and sector surveys completed in 6 Asian LDCs and China

4 business events including B2Bs and a regional seminar on China-ASEAN trade

60 SMES supported to B2B events, where they could gain valuable exposure to and

promote their products and services to the Chinese market

PROJECT IN NUMBERS

New business partnerships established to promote Chinese outbound tourism to Asian LDCs

‘We hope this report will prove beneficial for businesses from

developing and least developed countries in their quest for

new international markets.’

Mr. Hongbing Gao, Vice President, Alibaba Group

PROJECT STORIES

‘Working with Alibaba, ITC aims to facilitate improved access

to e-commerce markets in China for SMEs in Asia and

beyond.’

Ms. Arancha Gonzales, Executive Director, ITC

‘The training was very important to learn about market de-

mand, export rules and regulations and procedures in China.’

An entrepreneur from Bangladesh

‘I thank ITC for having organized this training worshop, which al-

lowed me to increase my knowledge of the Chinese market’

An entrepreneur from Lao PDR, participants to the training in Kun-

ming, China, November 2017.

‘This was my very first participation in a trade fair thanks to ITC’. It

allowed me do get valuable knowledge and experience in trade

fair and Chinese customers preferences.

A woman entrepreneur from Nepal