Regional Training ProgramSME Cluster Development and Export Consortia

Hiep Thanh Ltd Tea Cluster and Export Consortia

•Introduction.Tea is a popular drink in VietnamTea is main agricultural product in high land and mountainous area in the north of Viet Nam.

Tea industry brings more than 1000000 jobs fEnterprises in Tea Industry all most are small and medium enterprise need to collaboration

to increase manufacturing efficiency, improve quality product enter in channel of export

Our TargetWith Support of MI and VCCI Hiep Thanh Co Ltd set up Tea Export And Consortia with - 10- 12 member- Annual Export Value: Approx 10,000,000 USD- Annual Export Quantity: Approx 6,000 Mts

Step/Stage and Location

We carried out following step in order to set up Tea Cluster And Export Consortia:- Determine company who dealing with Green tea and Discuss about ideal. Most of company

locate in the north of Vietnam.- See which kind of tea they are manufacturing, Collect sample and evaluation send sample to the buyer- Study legal frame work, regulation to adjust this issue- Arrange meeting will all member and sign MOU.- Set up team in charge

Outcome

Sign MOU with 7 company joint- Hiep Thanh Co Ltd represent on behalf of Tea Cluster And Export Consortia- Tam Duong Tea Co Ltd in Lai Chau province- Thanh Gia Cooperative in Lai Chau province- Phu Hien Joint Stock Co in Tuyen Quang province- Quang Long Tea Ltd in Quang Ninh province- Vinh Phuc Agroproducts and Packaging Joint Stock Co in Vinh Phuc province

Set up Implementation Tea

Carry out some export transaction

Tentative Plan for coming time

- Set up consultant team to review all issue of each member on saving cost and improve quality

- Check list if input matter discuss a common supplying contract for all member- Carry out one field trip for all main management staff to visit some model of tea factory in

Vietnam such as Phu Ben est, My Lam est- Have plan to promote tea from each member and follow it.

Challenge

- All member are small and medium enterprises going on with higher cost- Market requirement is get higher day by day, Specially health regulations for human

consumption- There is no legal framework for this principle at the moment so it will more complicated to

call external support from Govs, Ngo

Recommendations

- Some enterprise only enter Cluster and Consortia if they get benefit from that via increasing competitive and setting up export channel

- Under condition of Vietnam where position of Vitas (Vietnam Tea Association) is not strong fair and transparency. Work and keep Cluster and Export Consortia transparency are very important factor

- We have to strengthen capacity of Tea Cluster and Export Consortia to enter strict and bigger global supply chain like Lipton Unilever.