The SME Perspective Mr Nguyen Hong Long SPIN Project Regional Coordinator

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1 The SME Perspective Mr Nguyen Hong Long SPIN Project Regional Coordinator

2 Eco-Innovation in Action: SMEs perspective Nguyen Hong Long SPIN regional coordinator

3 Content Agri-food SME challenges and opportunities A simple within-the-fence Eco-I case: packaging A more complex systemic Eco-I case: retailing Findings and suggestions

4 Agri-food SME challenges and opportunities Challenges: Limited capacity Limited access to finance, technology and market Business model crisis Unpredictable business environment

5 Agri-food SME challenges and opportunities Opportunities: Big market Big potential to add value: rice, coffee, pangasius, pepper value chains High competitiveness

6 Case 1: packaging in Utxico Company background Located in the centre of aquaculture region, is one of the large aquatic products exporting companies in Cuu Long River Delta. Established end of Has 5 direct factories, 3 out of 5 are for processing and 1 is applying CP. Formerly was an aquaculture collecting company, thus, having the advantage of resource sources 11/22/2013 6

7 Case 1: packaging in Utxico Packaging improvement under the guidance of Dr. Roland ten Klooster (TU Delft). Applied the Design4Sustainability approach 11/22/2013 7

8 Case 1: packaging in Utxico Paid attention to: The package size, product volume, functionality and presentation. Packaging method to reduce the packaging box size. Optimising the distribution system redesign the package to fit with the products inside, increase the numbers of products per package and, thus, per container. 11/22/2013 8

9 Case 1: packaging in Utxico New products: - Product 1: Diversify the products by making use of coconut availability in Vietnam. Old product Improved product with coconut 11/22/2013 9

10 Case 1: packaging in Utxico - Product 2: Diversify skewered shrimps by marinating with different sorts of spices Improved products with different spices 11/22/

11 Case 1: packaging in Utxico New product: - Product 3: Newly-designed product using blended shirmps new products 11/22/

12 Case 1: packaging in Utxico Reduced packaging materials: - Product 1: slashing shrimp with coconut powder round PE : reduction of 13.1 % Card-board: reduction of 12% Transporation costs: reduction of 12% container fees. 11/22/

13 Case 1: packaging in Utxico PE bags before and after improvement Card-board boxes before and after improvement 11/22/

14 Case 1: packaging in Utxico - Product 2: Nobashi shirmps Porous tray: reduction of 34.4% materials PE bags: reduction of 8.4% materials Card-board boxes: reduction of 51.3% materials 11/22/

15 Case 1: packaging in Utxico Nobashi shrimp product before and after improvement 11/22/

16 Case 2: Retailing and SPI in i-nature Value chain coverage: from farm to dining-table within hours Cultural perspective: the best food processing is no processing

17 Case 2: Retailing and SPI in i-nature Pure organic agricultural practices in closed-loop: no waste Renewable energy use

18 Case 2: Retailing and SPI in i-nature Create reliable sources of organic products by C2C package of technology transfer, on-site training, bilateral commitment, strict quality control Kiểm tra hoạt động giám sát của nhân viên giám sát 2 tuần / lần Khảo sát, đánh giá nguồn lực 2. Test nhanh bằng máy và phân tích mẫu tại Viện KHVN Chuyển giao kĩ thuật công nghệ Phân tích mẫu đất nước 1. Tư vấn giám sát trực tiếp nông dân 2 ngày/ tuần tại trang trại

19 Case 2: Retailing and SPI in i-nature Voluntary certification: Hang Xanh/ Green Street and UNIDO sustainability evaluation system

20 Case 2: Retailing and SPI in i-nature Green community: customer knows producer traceability and even more

21 Case 2: Retailing and SPI in i-nature Cluster of small farms: st year income: 1.6 bill. VND

22 Findings Eco-I is feasible in SMEs in different levels The difficulties in accessing finance, market and technology can be overcome by the cooperation among key players: development project, SMEs, customer clubs. But this needs a coordinator. Clustering of SMEs give more opportunities Eager to learn, active and patient SMEs will be successful

23 Suggestions Development projects, programs, funds can play key role in Eco-innovation The SMEs should be active in finding external resources: joining sector associations or applying for funds Main aspects of Eco-innovation in agri-food sector: business model, technology, and branding There is a big need for localized, low cost and applicable technologies