PRESENT BY: MA AYE, KYI, BOUAVONE & PHOUKHAO Content Overview of cluster Marketing Technology Development Plan Organization & Management Finance Brief SME Cluster/EC Introduction Mission: To get more profit, develop SMEs productivity Vision: best organic vegetable exporter to the world Location: Champasack, Lao PDR, 5 hectares, - place where farmers grow a lot of vegetables. - Has a good transportation system - The 2 nd bridge has been built across the Mekong river Overview Overview of cluster capability - Total Investments by the SMEs : 1,841,300 US$ - Employment: Export Percentage: Up to 60% - Development period: 1 year - Management Structure: Semi Objectives - The long-term development objective of the project is to increase export competitiveness of the organic vegetables cluster. -The immediate objective of the project is to enable organic vegetables cluster to improve their productivity, quality and market access through enhanced availability of information and services for upgrading skills and processes and overcoming market access barriers. Market Analysis The demand for fair traded products continue to rise. Despite the debt crisis, people continue to support fair trade products. Exports though moved closer to CLMV Thailand, Korea, Japan, and Indonesia. Market definition: - Domestic: local restaurants, hotels, mining project, hydro power dam - Export Market: Thailand, Japan, Korea, Indonesia.. Market Analysis (cont) Competitors: - Domestic: No - Neighbor country: SMEs from Thailand, Vietnam Customers: SMEs Target SMEs: - SMEs who producing organic vegetable - Good in finance Marketing Strategies Product/service - Training - Water system - Land - Seed - Security Advertising - Exhibition - Weekly market - Newspapers, Magazine - Website Marketing budget: 67,000 US$/year Pricing: 1000 us$/months originally there are 600 SMEs, but reduce to 120 SMEs because allocated area only 5 hectares. Development and Technology Plan Cluster layout: -2 warehouse - 3 water supplies - Seed bank -Administration office(lab, meeting room) -Garage -Car Park -Security house -Plastic roof -Good road condition Development (cont) Objectives to increase quantity and quality of vegetables product to increase farmers income to promote and find new markets Milestones and current status Lack of skill, low technology Farmers almost harvest the same crops at the same times Difficulties and risks No quality control Farmers mostly sell at the farm Farmers almost harvest the same crops at the same times Traditional Packaging Operations Plan Objectives To improve quality and quantity of farmer product to increase export competitiveness To get more incomes Using new technology in grow vegetable Plan for the provision of the Assistance Management -Management Team: Board of director, cluster administration (consultant) -Subcontractors: Security, Cleaning SME Cluster Timetable Financials Investment Plan Total Investment: 1,841,300 US$ Total Fixed Investment: 1,719,800 US$ Total Pre-Operating Investment (POI): 121,500 US$ + Loan:837,300 US$ PROJECTED PROFIT AND LOSS Year 1Year 2Year 3Year 4Year 5 SALES OPERATING PROFIT Interest Tax PROFIT Cash Flow Year 0Year 1Year 2Year 3Year 4Year 5 Total Cash In-Flow Total Cash Out-Flow Ending Cash Balance Balance Sheet Year 0Year 1Year 2Year 3Year 4Year 5 TOTAL ASSETS Total Current Liabilities Total Equity Thank you for your attention!!!!!!!!!