•

•

•

•

•

•

•

•

•

•

3

→

→

0

50

100

150

200

250

300

350

Ind

ex: 1

99

4 =

10

0

Growth in industrial sector employment

World Vietnam Bangladesh Mexico

▪

▪

What do we mean by a global value chain?

What do we mean by a global value chain?

Different types of GVC participation

InnovationMedium commodity High commodityLow Limited manufacturing Enhanced manufacturing and services

0 20 40 60 80

ZAF

TUR

THA

RUS

PER

IND

COL

CHN

CHL

BRA

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

Motor Vehicles

Direct VA Indirect VA

0 2,000 4,000 6,000 8,000

ZAF

TUR

THA

RUS

PER

IND

COL

CHL

BRA

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

Motor Vehicles

Direct VA Indirect VA

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

5.00

Production workers Administration, saleworkers

Pe

rce

nta

ge

of

fem

ale

wo

rke

rs in

to

tal

wo

rke

rs, re

lati

ve

to

no

n-G

VC

fir

m

-0.14

-0.12

-0.10

-0.08

-0.06

-0.04

-0.02

0.00

Majority ownership Top management

Pro

ba

bilit

y (

pe

rce

nt)

of

fem

ale

ow

ne

r o

r m

an

ag

er,

re

lati

ve

to

no

n-G

VC

fir

ms

•

•

•

0 20 40 60 80 100

textiles

procfoods

primaryagr

metals

leather

clothing

bevtobacco

Utilities Construction Distribution

Transport Communication Finance

Insurance OBS, ICT Other services

•

•

•

Many different approaches to the analysis

QUANTITATIVE

QUALITATIVE

SURVEYS

FOCUS GROUPS

KEY INFORMANT INTERVIEWS

PARTICIPATORY / ACTION RESEARCH

• Stakeholder mapping / analysis

• Diaries

• Political economy analysis

• Gender analysis

• Mapping labor

• Mapping value, cost and time

• Productivity analysis

• Secondary data analysis (LFS,

HIES, etc)

WIDE VARIETY OF TOOLKITS / GUIDES AVAILABLE–LINKED TO SPECIFIC APPROACHES:

• Sustainable Livelihoods (SL)

• Making Markets Work for the Poor (M4P)

• Agricultural Commodities and Livestock (IFAD)

• VC Development for Decent Work (ILO)

• Global Value Chains (GVC)

30

•

•

•

•

15

20

25

30

35

40

Exp

ort

lab

or

in tota

l la

bo

r (%

)

1990 1995 2000 2005 2010Year

Jobs Wages

0 2,000 4,000 6,000 8,000Wages (trillion Dong)

Other transport equipment

Electronics

Furniture

Apparel

Food products, beverages

Direct JOBX Indirect JOBX

•

•

•

•

32

0 2,000 4,000 6,000 8,000US$ mil.

ZAF

TUR

THA

RUS

PER

IND

COL

CHL

BRA

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

20112001

Motor Vehicles

Direct LVAX Indirect LVAX

0 2,000 4,000 6,000US$ mil.

DwellingsConstruction

Leather ProductsElectricity, Gas, Water

Wearing ApparelMineral Products nec

TextilesWood Products

Manufactures necBeverages and Tobacco Products

Metal ProductsPaper Products, Publishing

Energy ExtractionPubAdmin/Defence/Health/Educat

Processed FoodsAgr, Forestry, FisheriesOther Private Services

Trade and Transport ServicesChemical, Rubber, Plastic Products

Transport EquipmentFerrous Metals

Machinery and Equipment necMetals nec

Minerals nec

2011

Direct LVAX Indirect LVAX

6-16 weeks

• Database

analysis

• Generic VC

(global)

mapping

• Review existing

sector info

• Initial sector

screening

VC selection /

mobilization

FIRM SURVEYS

(50-100++ sample,

context-dependent)

FIRM INTERVIEWS AND

FOCUS GROUPS

(20-50+ subsample)

3-4 weeks

Identification of

potential firms to

survey

Initial counterpart

and stakeholders

consultation

Deve

lop a

nd im

ple

ment

sam

plin

g s

trate

gy

IMPLE

MEN

TATI

ON

PLA

NN

ING

CONSULTATION / PUBLIC-PRIVATE DIALOGUE

Analysis

and

recommend

ations

3-4 weeks

Kick-off mission Field research missions (optional) Concluding mission

PH

AS

EA

CT

IVIT

YT

OO

L

SCOPING AND PRELIMINARY ANALYSIS FIELD RESEARCH ANALYSIS / CONCLUSIONS

Terms of reference

for hiring external

experts to lead

the VC analysis

RFP / TOR

template

General and sector-

based survey

templates

Survey

instruments

Guidelines for semi-

structured interviews

Interview

guidelines

List of what should

be understood by

the end of the

analytical

process

Completion

checklist

Criteria and data

sources for

screening and

selecting value

chains

Screening

template

▪

▪

▪

▪

▪

▪

▪

▪

▪

→

Sampling – why do we care about it?

WHETHER OR NOT YOU ARE SURVEYING, REPRESENTATIVENESS MATTERS…

Market actors-

core value chain

List of firms /

contact details

List of firms /

contact details

List of firms /

contact details

List of firms /

contact details

Market actors-

support players,

institutions, govt.

List of firms /

contact details

List of firms /

contact details

List of firms /

contact details

List of firms /

contact details

• •

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

•

To Limited Manufacturing To advanced manufacturing and

services

To innovative activities

Poor endowments?

FDI: Investment policy and business climate

Access to finance and technology

Competitive labor costs: exchange rates, labor regulation Skills: Education, Technical / vocational training, managerial skills. Education, training, and skill increasingly important

Remote location?

Trade infrastructure: investment in ports and transport infra /

customs reform

Advanced logistics services: Multimodal, digitally-enabled transport infrastructure investment; liberalized transport services

environment

Trade facilitation complemented by liberalization of transport

and distribution services

Basic ICT connectivity: Infrastructure investment Advanced ICT services: Infrastructure, competitive markets

(liberalized ICT services environment)

Small market size?

Access to inputs: Liberalized access to key inputs (selective

tariffs / NTM reform)

Access to inputs: Broad-based liberalization – goods and services – including trade, investment, and domestic regulatory policy

Market access: Preferential trade agreements Market access: Deep trade agreements (incl investment and

services)

Weak institutions?

Governance: political stability Governance: policy predictability Deepen trade cooperation and commitments

Legal: contract enforcement Legal: contract enforcement + IPR protection

Innovation: basic standards regime Innovation: innovation ecosystem (R&D policy, industry-academia

links, etc)

Creating an environment for continuous innovation

R&D capacity and IPR protection

Trade facilitation and

transport liberalization

Skill development: technical

and managerial

Spending on total and active labor market policies as a percentage of GDP, 2016

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

Mex

ico

Uni

ted

Sta

tes

Japa

n

Isra

el

Chile

Latv

ia

Uni

ted

Kin

gdom

Slov

enia

Aus

tral

ia

Cana

da

Slov

ak R

epu

blic

New

Zea

land

Esto

nia

Czec

h Re

pub

lic

Sou

th K

orea

Pola

nd

Port

ugal

Irel

and

Ital

y

Nor

way

Spai

n

Swit

zerl

and

Ger

man

y

Net

herl

ands

Belg

ium

Aus

tria

Luxe

mb

ourg

Hu

ngar

y

Fin

lan

d

Fran

ce

Swed

en

Den

mar

k

Active Spending

Total Spending

▪

•

•

•

•

•

•

traders processorsWholesalers/

retailers

•

•

•

•

•

•

•

•

•

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•

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•

•

•

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•

•

•

•

•

•

•

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•

•

Linkages– examples and lessons

•

•

•

•

•

•

Guinea Linkages Program

Chile World Class

Supplier Development

Program

Malaysia Industrial

Linkages Program

Czech Pilot Supplier

Development Program

Supplier Development

Program

•

•

•

•

•

•

•

➢

➢

➢

•

•

•

•

•

•

0.0

10.0

20.0

30.0

40.0

50.0

60.0

All Countries EAP Vietnam All Countries EAP Vietnam

Per

cen

t

% Firms with Internationally

Recognized Quality Certification % of Firms with Annual Financial

Statement Reviewed by External Auditor

50%

9%

24%

6%

Foreign-owned firm

Domestic firms

Linked firms

Non-linked firms

•

•

•

•

•

•

•

•

62

•

•