National Short-term Technical Assistance

3 days ago

Hanoi, Vietnam IDG Full time

**Vietnam Digital Trade**

**SCOPE OF WORK**

**National Short-term Technical Assistance (STTA) Global Value Chain Expert**
**(focused on Timber/Furniture and Food processing Sectors) (Local Expert 2)**

Date: XXX February 2024
Position: National STTA Global Value Chain Expert (focused on Timber/Furniture and Food processing Sectors) (Local Expert 2)
Reports to: USAID Vietnam Digital Trade (VDT) Technical Team
Location: Hanoi or other provinces in Vietnam (if required)
Eligibility: Vietnamese Nationals
LOE: (STTA) 30 days
Period of Performance: March - July 2024

International Development Group LLC is an international development consulting firm that assists donors, governments, and the private sector to create and take advantage of opportunities for sustainable, broad-based economic development and poverty reduction. IDG provides entrepreneurs and policymakers with the practical tools needed to achieve real and measurable impact for their communities and countries. IDG assistance programs aim to build the capacity, skills, and knowledge of local individuals and institutions in the public, private, and not-for-profit sectors, fostering synergies between local knowledge and international experience.

**Project Background**

The VDT is a two-year activity (2023-2025) addressing regulatory gaps and promoting private sector engagement in the rapidly growing digital economy. USAID VDT Activity supports the Ministry of Industry and Trade (MOIT)’s implementation of frameworks that facilitate digital trade, with an emphasis on supporting MOIT in holding public-private dialogues to ensure implementation is done in consultation with the private sector. Regulations that are responsive to private sector needs remove bottlenecks in trade faced by enterprises and increase regulatory transparency, helping to shape an e-commerce sector where enterprises of all sizes can benefit. The Activity encourages the participation of small and medium enterprises (SMEs) in digital trade by introducing new business models and other best practices, such as traceability of goods, as well as facilitating cross-border connections between enterprises via MOIT’s digital trade promotion platform.

**Activity Background**

In Vietnam, over 800,000 Vietnamese SMEs account for the 40% of GDP and employ 80% of the workforce, who are mainly engaged in labor-intensive manufacturing and resource extraction. Currently, only 21% of SMEs participate in the global supply chain, while it is over 30% in Thailand and it is 46% in Malaysia. Therefore, SMEs rarely benefit from the spillover effect of FDI enterprises through technology transfer, knowledge and productivity improvement.

Vietnam continued its trade surplus in 2023 with an estimated 26 billion USD or nearly triple the figure in 2022, which is making it eight consecutive years. SMEs could double their export value by 2025, but unlocking this potential necessitates addressing several challenges, like the limited access to capital, technology, and skilled labor. Moreover, inadequate digital infrastructure and logístical bottlenecks further impede efficient connectivity and data exchange within these complex networks. Adding to these challenge is a knowledge gap - limited awareness of GVC intricacies and insufficient managerial skills can cripple effective participation. Finally, the intricate standards and regulations imposed by global markets pose a hefty compliance burden for smaller firms.

The MOIT Department of Planning and Finance (DPF) is assigned to develop a Five-year Action Plan to support SME participation in the global value chain (GVC) for Prime Minister’s approval. The Five-Year Action Plan aims to increase productivity, efficiency, technology capabilities, and competitiveness in industry sectors and enhance export competitiveness and GVC participation of Vietnamese. The Action plan will be aligned with the National Industrial Action Plan currently drafted by the MOIT and will also contribute to the National Program on Promoting Domestic Private Sector Participation in Regional and Global Value Chains towards 2030.

In order to prepare the five-year action plan, under the approved work plan between the MOIT and USAID, the USAID VDT will support the MOIT DPF to conduct an assessment report on the impact of the digitalization of the global value chain on the export activities of Vietnamese SMEs. The research is focused on (i) clarifying the process of digital transformation of GVC (including general approach of digitalization of GVC and SME’s participation, policy framework to help SME to reduce negative impacts), (ii) identify opportunities and challenges for SMEs in participating and benefiting from this process for export development, and (iii) recommendations and proposed solutions to support SMEs (including international experiences and benchmarking with Vietnam).

The assessment report will focus on four main sectors, i.e., electronics, food processing, timber and furnitu

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