USAID Linkages for Small and Medium Enterprises (LinkSME

USAID Linkages for Small and Medium Enterprises

(LinkSME) Project

Linkages for Small and Medium Enterprises (USAID LinkSME) Project Quarterly Progress Report (QPR) – Year 1 (Yr1) Quarter 3 (Q3) Covering the Period April 1, 2019 to June 30, 2019 Submitted July 30, 2019

This Quarterly Progress Report was made possible through support provided by the U.S. Agency

for International Development (USAID). The opinions expressed herein are the sole

responsibility of IESC and do not necessarily reflect the views of USAID or the United States

Government.

USAID LinkSME Quarterly Progress Report Yr1 QPR 03 Page 1

Prepared under the USAID Linkages for Small and Medium Enterprises (USAID LinkSME)

Contract No. 72044018C00002 managed by International Executive Service Corps

IESC Contact

Ronald Ashkin

USAID LinkSME Project Director

6th Floor, No. 10 Chu Văn An, Ba Đinh

Hà Nội 10000, Vietnam

Tel: +84 358 021 163

Email: [email protected]

Chad Ford

Associate Vice President

International Executive Service Corps

1900 M Street, NW

Suite 500

Washington, DC 20036

Tel: (202) 589-2643


Front cover photograph: U.S. Ambassador to Vietnam Daniel Kritenbrink visits exhibitors at

AmCham Hanoi Supplier Day 2019, April 25, 2019. Photo credit: USAID LinkSME.

mailto:[email protected]



Table of Contents

Acronym list 4

Executive Summary 6

I. Introduction 7

II. Progress Against Planned Activities 8

A. TA 1: Establishing One-to-One Relationships Between FFs and SMEs 8

TA 1.1 Identification of Foreign Firms 8

TA 1.2 Development of FF Requests for Proposals 10

TA 1.3 SME Outreach and Two-Stage Shortlisting 10

TA 1.4 Linking SMEs to Foreign Firms 11

TA 1.5 Final Selection of SME Suppliers 11

TA 1.6 Technical Assistance to SME Suppliers 12

B. TA 2: Supplier Days 12

TA 2.1 AmCham Sponsored Supplier Days 12

TA 2.2 Sector-Specific Supplier Days 12

TA 2.3 Pre-Supplier Day Training 13

C. TA 3: Outreach and External Communications 13

D. TA 4: SME Advisory Group 14

E. TA 5: Baseline Assessment 15

F. TA 6: Phase 2 Sector Selection Process 15

G. Next Quarter Technical Activity Highlights 15

III. Progress related to Monitoring, Evaluation, and Learning 18

Table of Indicators 18

B. Analysis of Indicators as Applicable 19

IV. Project Management 20

A. Mobilization 20

B. Project Registration, Organizational Registration, and Local Offices 20

C. Management Approach and Structure 21

D. IESC Home-office Oversight and Support 21

E. Communications and Outreach 22

E1. Branding Implementation Plan and Marking Plan 22

E2. Communications Materials Production 22

E3. Outreach Activities 22

F. Reporting 23


G. Next Quarter Project Management Support 23

V. Challenges and Proposed Solutions 23

Annex A – Updated Implementation Plan 23

Annex B – Financial Reporting FY19 Q3 25

Annex C – Summary of Electronic Attachments 25


Acronym list AmCham American Chamber of Commerce

AMEL Activity Monitoring, Evaluation, and Learning

APCA Administrative Procedure Control Agency

COR Contracting Officer’s Representative

CRM Customer Relationship Management

DOIT Department of Industry and Trade

EDA Enterprise Development Agency

EG2 Economic Growth and Governance

EWI East West Industries

FF Foreign Firm

GVC Global Value Chain

GVN Government of Vietnam

HAMEE Ho Chi Minh Association of Machinery and Electric Enterprises

HATEX Hai Phong Technology Exchange

HAuA Ho Chi Minh City Automation Association

HBA HEPZA Businesses Association

HCMC Ho Chi Minh City

HEPZA Ho Chi Minh City Export Processing and Industrial Zones Authority

IESC International Executive Service Corps

ITPC Investment and Trade Promotion Center

LinkSME Linkages for Small and Medium Enterprises

LOP Life of Project

MOIT Ministry of Industry and Trade

MOU Memorandum of Understanding

MPI Ministry of Planning and Investment

OOG Office of the Government

PO Purchase Order

PSDO Private Sector Development Office

Q Quarter

QPR Quarterly Progress Report

RFQ Request for Quotation

SME Small and Medium Enterprise

STTA Short-Term Technical Assistance

TA Technical Assistance/Activity

U.S. United States

USAID United States Agency for International Development

VAMI Vietnam Association of Mechanical Industries

VASI Vietnam Association of Supporting Industries

VAT Value Added Tax

VCCI Vietnam Chamber of Commerce and Industry

VEIA Vietnam Electronics Industry Association

ViEF Vietnam Economic Forum

Vietrade Vietnam Export Promotion Agency


VUS Vietnam – United States of America Society of Hai Phong City


Executive Summary In terms of geopolitical events, Quarter 3 (Q3) saw trade tensions between the United States

(U.S.) and China ratchet up, with 25 percent tariffs placed on a wide range of Chinese goods at

the end of May 2019. This accelerated the trend of global firms looking to Vietnam as a

manufacturing and supply chain base, but also exacerbated the trade deficit between the U.S. and

Vietnam. This caused USAID/Vietnam to adopt a more cautious risk profile regarding the U.S.

firms with which USAID LinkSME partners, which affected the composition of the project’s

Foreign Firm (FF) portfolio.

To summarize technical accomplishments during this quarter, the Small & Medium Enterprise

(SME) Advisory Group held its second regular meeting on April 24 and SME supplier pre-

evaluations continued, with 46 completed by the end of the reporting period. Online registrations

into the USAID LinkSME database continued at a faster pace in the third quarter, with 572

additional SME registrations, bringing the total number of registered SMEs to 955; 233 of these

firms were in the focus sectors of electronics and metals, bringing the total number of registered

electronics and metals firms up to 362. Extensive private sector outreach in the third quarter led

to discussions with 26 additional FFs, bringing the total met to 109, and 25 additional

associations, chambers, and organizations, bringing the total met to 77. The team also visited

and/or contacted one additional industrial park, bringing the total met to 17. These discussions

resulted in the signing of nine additional memoranda of understanding (MOUs) that frame future

cooperation, two with FFs and seven with organizations, bringing the cumulative total of signed

MOUs to 24.

During Q3, USAID LinkSME worked with the American Chamber of Commerce (AmCham) to

execute the first-ever Hanoi Supplier Day on April 24. Response was robust; 65 firms exhibited,

surpassing the target of 50. U.S. Ambassador to Vietnam Daniel Kritenbrink keynoted the event.

In addition to the AmCham Hanoi Supplier Day 2019, outreach activities this quarter included

Vietnam Expo 2019, Vietnam Private Sector Economic Forum’s Business Matching Day in

Hanoi, Hai Phong Technology Exchange (HATEX) metals sector event, Saigon Auto Tech and

Accessories Trade Fair, and a workshop on “How to Become a Qualified Supplier to Foreign

Firms.” As a result of these events, 357 firms registered in the project online database.

Major project management accomplishments were also realized this quarter. The Hanoi

permanent office was opened and both the Hanoi and Ho Chi Minh City (HCMC) offices were

fully staffed. The USAID LinkSME team hosted the implementing partner’s farewell meeting for

USAID Economic Growth and Governance (EG2) Director Michael Trueblood at the new Hanoi

office. IESC Home-Office Associate Vice President Chad Ford completed an oversight

assignment strategizing on remaining year one activities, getting first-hand feedback from

USAID and project stakeholders, and completing several site visits to beneficiaries. Contract

modification language was drafted and reviewed with USAID related to the anticipated project

registration requirements of the Government of Vietnam (GVN).

With support from USAID and a local short-term consultant, the team advanced project approval

with the GVN. The Project Document outline was approved and the Office of the Government

(OOG) appointed its Administrative Procedures Control Agency (APCA) as the supervising


counterpart for USAID LinkSME. At the end of Q3, the Project Document was in final stages of

approval, now anticipated to be finalized in Q4.

I. Introduction The purpose of USAID LinkSME is to

spur systemic changes in relationships

between Vietnamese SMEs and FFs and

thereby achieve significant increases in

the quantity and/or quality of business

linkages between Vietnamese SMEs and

FFs. Systemic changes include

evidence-based regulatory and policy

recommendations to improve the SME

enabling environment. The cost-plus-

award-fee contract is valued at

approximately $22.1 million, not

including the award fee. The obligation

at the end of Q3 was approximately $5.9

million1 with spent to date as of June 30,

2019 at $2,263,462. As per Section F,

Deliveries or Performance, F.6.

Deliverables, subpart a. Quarterly

Progress and Financial Reports found on

page 11 to 12 of the USAID LinkSME

contract, this combined quarterly

progress report (QPR) and financial

report was submitted thirty (30) days

following the end of the first full fiscal

quarter. The report is no more than 25

pages2 and reflects the structure of the

approved USAID LinkSME Year 1

Annual Work Plan. The text box includes a list of points the report addresses per the contract

requirement. The financial report includes costs to date, including those for subcontracts, the

budget estimate for the upcoming quarter, variations from previous estimates (which, if

significant, are highlighted on spreadsheets and addressed in a narrative), and the estimated cost

to complete the quarter. The financial report format was agreed to by the USAID LinkSME

Contracting Officer’s Representative (COR).

IESC is the prime implementer of USAID LinkSME, joined by KPMG Vietnam and TAJ Media.

Under this Contract, IESC is supporting USAID/Vietnam’s Objectives: 1) Strengthen the SME-

1 Incremental funding received on July 16, 2019 brought the total obligated amount to $6,362,068.

2 The Google drive is USAID/Vietnam’s preferred platform. Google Docs does not allow section breaks, which help

with section numbering. The QPR is 25 pages with the report’s starting at the Executive Summary and ending with

Annex C, even though the TOC reflects number as of the cover page.

Contract Requirements for USAID LinkSME QPRs

- Activities completed under each planned intervention; - Activities to be undertaken in the following quarter; - Outputs accomplished and results realized in the quarter; - Any challenges during the implementation period and proposed solutions; - Private Sector Engagement: (1) Description of where private sector contributions have been sought and received, and how these contributions have contributed to the achievement of the overall objectives; (2) Report on the value of private sector contributions (by the quarter, and cumulatively -both financial and in-kind); - Collaboration and coordination with other relevant USAID and donor activities and GVN; - Aggregate outputs accomplished and results realized since project inception; - Budget execution, clearly showing actual versus planned expenditures, and a forecast of the expenditures for the remainder of the project; - Demonstration of steps taken to analyze the Contractor’s own progress against desired results and to devise solutions, propose course corrections, and identify whether new stakeholders should be engaged to ensure program success; - Electronic copies of all reports, success stories, and other relevant documents prepared during the quarter (to be submitted as attachments); - Total funds committed by date by USAID into the Contract; - Total funds expended by the Contractor to date, including a breakdown to the budget categories provided in the Contractor’s cost proposal and between Technical and Administrative services, with additional detail to be provided upon request by the COR; - Pipeline (committed funds minus expended funds).


Global Value Chain (GVC) Business Linkage Framework; and, 2) Enhance Vietnamese SMEs’

capacity to supply GVC firms in five sectors.

II. Progress Against Planned Activities Progress against the project technical activities are described below. More detail on the timing of

each Technical Activity (TA), responsible and assisting team members, and deliverables and

milestones, can be found in the Gantt Chart referenced in Annex A and attached separately.

Costs are captured in the total budget spent to date against budget planning for Year 1 included

as Annex B of this QPR.

A. TA 1: Establishing One-to-One Relationships Between FFs and SMEs

Technical Activity 1 (TA1) is encouraging one-to-one matching between FFs and Vietnamese

SME suppliers. In Phase 1, USAID LinkSME is working with SMEs in the electronics and

metals sectors.

TA 1.1 Identification of Foreign Firms

USAID LinkSME’s Foreign Firm Linkage Component Director and Foreign Firm Linkage

Manager met with 26 additional FFs sourcing from the electronics and metals sectors in Q3, both

at trade events and at individually scheduled meetings, bringing the cumulative total to 109 FFs

met. The FFs range from firms located overseas sourcing in Vietnam, to mid-level manufacturers

in Vietnam who do not have extensive local supplier development programs, to recognized

global brands. The common element is that all these firms wish to deepen their local supply

chain in Vietnam.

By June 30, 2019, USAID LinkSME signed MOUs with two additional FFs who agreed to

participate with the project to expand their local content and source inputs from Vietnamese

SMEs, bringing the total to eleven as of the end of Q3:

1. Preformed Line Products (Thailand, power transmission hardware) – April 5, 2019; and,

2. Métosak (Canada, Supplier for Bombardier, metal products) – June 20, 2019.

To further identify potential FFs who are manufacturing in Vietnam or otherwise sourcing from

Vietnam, as well as identify potential suppliers for them, in the third quarter the USAID

LinkSME team met with 26 additional trade associations, chambers of commerce, foreign trade

promotion organizations, and other business organizations, bringing the cumulative total to 77.

USAID LinkSME approached one additional industrial park, bringing the total to 17.

Among support organizations, the following seven signed MOUs with USAID LinkSME in the

third quarter of year 1, bringing the total as of end-Q3 to 13.

1. Vietnam - USA Society of Hai Phong City (VUS) – April 4, 2019;

2. Vietnam Association for Supporting Industries (VASI) – April 10, 2019;

3. Vietnam Association of Mechanical Industry (VAMI) – April 18, 2019;

4. Private Sector Development Office (PSDO) – April 24, 2019;

5. Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA)

Businesses Association (HBA) – April 26, 2019;


6. Ho Chi Minh City Automation Association (HAuA) – May 23, 2019; and,

7. Vietnam Electronic Industries Association (VEIA) – June 5, 2019.

The global economic environment in Q3 was characterized by increased trade tensions between

the U.S. and China, the world’s two largest economies. Punitive tariffs of 25 percent against

substantial categories of Chinese manufactured goods announced by the U.S. in May 2019

affected GVCs, particularly for FFs that source from China. One implication was heightened

interest among global firms in relocating manufacturing to Vietnam, which has generally been

viewed as positive for Vietnam’s economic development.

However, during Q3, in the context of these global trade tensions, the U.S. bilateral trade deficit

with Vietnam increased sharply. From January through May 2019, Vietnamese exports to the

U.S. increased 36.4 percent year-on-year compared to 2018, according to U.S. Census data cited

by the Wall Street Journal on July 10, 2019. In response to reputational risks to USAID posed by

offering technical assistance to U.S. firms who might potentially move supply chain jobs from

the U.S. to Vietnam, a new Mission policy on technical assistance to U.S. firms was developed.

This policy restricts the project from offering technical assistance to U.S.-headquartered firms

having production lines in the U.S. USAID LinkSME developed and applied a new Due

Diligence Screening Tool to assure that FFs comply with USAID/Vietnam’s risk profile. As a

result, the cooperation in progress with four firms has been put on hold as of the end of Q3, as

these firms all have U.S. headquarters and production lines in the U.S.:

1. Fluid Power & Controls;

2. Northstar;

3. Penflex; and,

4. Preformed Line Products.

The MOU with Coca Cola Vietnam is under review as USAID has global partnerships in effect

with Coca Cola. This leaves six active FF MOUs as of the end of Q3 (seven if Coca Cola

Vietnam is included):

1. East-West Industries;

2. IMC (Shane Erickson, Inc.);

3. Métosak;

4. RCH;

5. Ultralox (WES, LLC); and,

6. Wellmaster.

A revised FF acquisition strategy is under development as of the end of Q3 to make up for the

loss of four active FFs from the portfolio. The USAID/Vietnam Mission policy on technical

assistance to U.S. firms shall be reviewed periodically (at least every six months) to assure that it

continues to be appropriate for a changing risk environment.


TA 1.2 Development of FF Requests for Proposals

As of the end of Q3, USAID LinkSME staff are working with FF MOU partners Métosak and

Wellmaster to develop Request for Quotation (RFQ) packages which define product

specifications and include customer-specific requirements including logistics, packaging, and

volumes.

TA 1.3 SME Outreach and Two-Stage Shortlisting

USAID LinkSME’s Deputy Project Director/SME Linkage Component Director and SME

Linkage Managers met with approximately 1,500 SMEs in the third quarter through trade events

and individually scheduled meetings, bringing the total to over 3,300. Interested firms register

online into the project database at http://bit.ly/LinkSME1. In Q3, the pace of registrations

accelerated due not only to more outreach events, but also to better targeted events; 572 firms

registered their interest in Q3, bringing total database registrations to date to 955. Two hundred

thirty-three of these firms were in the focus sectors of electronics and metals, bringing the total

number of registered electronics and metals firms up to 362 (100 electronics + 262 metals).

Evaluation of SMEs takes two stages. The first stage, a half-day assessment known as a “pre-

evaluation” conducted by the SME Linkage Team based on ISO 9001:2015, assesses the firm’s

basic supply capabilities. The SME Linkage Team visits the facility, collects data, and the SME

then receives a scorecard covering seven key business areas, indicating areas that are satisfactory

and areas needing improvement. If the SME passes with a score of 2.51 or higher out of a

possible 5, it will be eligible for matchmaking with FFs in the project portfolio. This “pre-

evaluation” assures FF MOU partners that USAID LinkSME will only introduce potential

suppliers that have an acceptable level of fundamental capabilities; unqualified suppliers will be

screened out at this stage.

As of the end of Q3, a cumulative total of 77 SMEs have been visited and pre-evaluated by the

SME Linkage Team (10 electronics + 67 metals), and 49 passed (63.6 percent). Of the

electronics firms, six passed (60.0 percent). Of the metals firms, 43 passed (64.2 percent). SMEs

that pass are entered into the project’s Customer Relationship Management (CRM) system.

Products made by SMEs that pass pre-evaluation are then screened against specific procurement

requirements of FFs in the program. If they make products that match FF needs, USAID

LinkSME will introduce them to the buyer. The SME and FF will then negotiate commercially.

If the SME is selected by the FF as a potential vendor, USAID LinkSME will conduct the second

stage evaluation – a comprehensive ISO 9001:2015 operations audit. That audit generates a gap

analysis from which a supplier development (upgrade) plan is created. USAID LinkSME will

then provide targeted consulting assistance and training to help the SME meet buyer

requirements and join the global value chain. Table 1: The Winnowing Process from Initial Contact to Nomination as Supplier to Foreign Firm, as of End-Q3

Category Number (Cumulative) Percent of SMEs

Approached

Percent of Previous Level

SMEs approached 3324 100% -

SMEs registered 955 28.7%

of SMEs approached

registered online

-

http://bit.ly/LinkSME1


SMEs in

electronics and

metals sectors

362 10.9%

of SMEs approached were in

the target sectors

37.9%

of SMEs registered online

were in target sectors

SMEs pre-

evaluated for

linkage

77 2.3%

of SMEs approached made

products suitable for further

evaluation

21.3%

of SMEs in target sectors

made products suitable for

further evaluation

SMEs passed pre-

evaluation

49 1.5%

Of SMEs approached passed

the pre-evaluation

63.6%

Of SMEs pre-evaluated

passed the pre-evaluation

SMEs nominated

to FF

11 0.4%

of SMEs approached were

nominated to a foreign firm

22.4%

of SMEs who passed pre-

evaluation were nominated

to a foreign firm

SME – FF

completed

linkages

3 0.1% of SMEs contacted

completed a linkage

27.3% of SMEs nominated

to a foreign firm completed a

linkage

TA 1.4 Linking SMEs to Foreign Firms

As of the end of Q3, a total of 11 SMEs had passed pre-evaluation and were introduced to FFs

for commercial negotiations. All are in the metals sector. The SMEs are as follows:

1. Anh Nghia Co. Ltd.;

2. Bach Tung Travel Construction Mechanical Co., Ltd.;

3. Chimasa Co., Ltd.;

4. Duy Khanh Engineering Co., Ltd.;

5. Hong Ky Corporation;

6. MKTP Company Limited;

7. Nhuan Tien Co.,Ltd.;

8. OnTops KIC;

9. Tung Lam Manufacturing & Trading Co., Ltd.;

10. Viet Nhat Precision Co., Ltd.; and,

11. Vinavit Corp.

TA 1.5 Final Selection of SME Suppliers

USAID LinkSME completed its first linkages during Q3 as defined in the approved Activity

Monitoring, Evaluation, and Learning (AMEL) Plan: “Linkage equals completed transaction. A

transaction is fully completed when goods/services are delivered, and payments are made.”

Three linkages were completed during Q3 with vendor selection, order, production, delivery, and

payment, as follows:

● SME Anh Nghia to FF East-West Industries (EWI) – one transaction completed; and,

● SME OnTops to FF Ultralox – two transactions completed.

A total of 13 purchase orders (POs) were issued by FFs during Q3. Three were completed as

above, and ten remain open as of end of period: Ultralox, eight POs in process; EWI, one PO in

process; Métosak, one PO in process.


TA 1.6 Technical Assistance to SME Suppliers

In early May, USAID LinkSME completed an SME finance map entitled “SME Finance Sources

in Vietnam 2019” which is an up-to-date, one-stop guide for enterprises to the financial products

and institutions currently in the market. The purpose is to offer SMEs the information they need

to quickly locate appropriate financial support; no similar guide currently exists. During the

week of May 27, the guide was distributed to all SMEs registered in the USAID LinkSME online

database. Six hundred and fifty-five firms received soft copies of the guide in Vietnamese

language as a benefit of registering for the project. Distribution to additional SMEs is being done

concurrently through all partner associations, chambers, and organizations with whom USAID

LinkSME has MOUs.

On June 4, USAID LinkSME, in cooperation with Investment and Trade Promotion Center

(ITPC) HCMC, delivered a training on “How to Become a Qualified Supplier to Foreign Firms”

to representatives of 49 organizations.

Technical assistance to SMEs that have been matched to FFs will begin in Q4.

B. TA 2: Supplier Days

TA 2.1 AmCham Sponsored Supplier Days

In Q3, USAID LinkSME worked with AmCham Hanoi to organize the first-ever supplier day in

Hanoi, held on April 24 at the JW Marriott. The event was supported by the Vietnam Chamber

of Commerce and Industry (VCCI) and the Private Sector Development Committee (Committee

IV). Sixty-five firms exhibited their goods and services to nearly 400 attendees at the event,

exceeding the target of 50 firms.

U.S. Ambassador to Vietnam Daniel Kritenbrink addressed the plenary session along with Mr.

Vu Ba Phu, Director General, Vietnam Trade Promotion Agency; Dr. Doan Duy Khuong, Vice

Chairman, VCCI; and Mr. Nguyen Duc Tung, Chief Executive Officer, Private Sector

Development Committee. USAID LinkSME presented the project’s benefits to the audience and

had a display booth where attendees could register on the spot. Seventy-one new SMEs

registered on the day of the event. Supplier Day events both enable FFs to gain more information

about potential Vietnamese SME suppliers and SMEs to showcase their products for

matchmaking with FFs.

In Q4, USAID LinkSME will work with AmCham HCMC to prepare for Supplier Day events in

HCMC and Danang, which are scheduled for October and November 2019 (Year 2).

TA 2.2 Sector-Specific Supplier Days

Major trade events and supplier days in which the project participated in Q3 are listed below in

Table 2:


Table 2: Trade Events and Supplier Days in Q3

Event Date(s) Description

Vietnam Expo April 10 - 13 USAID LinkSME booth at the 29th Vietnam International

Trade Fair in Hanoi. Promoting the project and looking for

potential FFs and SMEs to participate; 4-day event.

National Private Sector Forum

2019 Business Matching Day

May 3 National economic forum with Private Sector Development

Committee/Vietnam Economic Forum (ViEF) established to

discuss key issues and development strategy of Vietnam’s

macroeconomy. This forum maintains constructive dialogue

on public-private policy between the private sector and the

Government, along with other stakeholders.

Hai Phong Conference on How

to Support Vietnamese

Supporting Industry SMEs in

Joining Global Value Chains

May 10 USAID LinkSME Project supporting metal enterprises

invited by HATEX to attend the workshop and give a speech

introducing the project and supporting policies.

Saigon AutoTech May 23 - 26 Exhibition on automobiles, motorcycles, electric vehicles and

supporting industries; only exhibition in "Supporting

Industry Development Program in 2019" of Vietnam

Ministry of Investment and Trade (MOIT); partnership with

VASI to bring member companies.

Vietnam Supporting Industries

Forum 2019

May 30 Pre-show forum leading up to Vietnam Manufacturing Expo

in August, organized by Reed Tradex. LinkSME presentation

on "Strengthening Vietnam’s Participation in the Global

Supply Chain"

The project team continued to reach out to industrial parks to discuss setting up roadshows, with

USAID LinkSME visiting the industrial parks and pitching the project’s benefits to FF tenants. A

portable roadshow kit to be used for roadshow events and exhibitions was produced in April

2019.

TA 2.3 Pre-Supplier Day Training

The project will deliver half-day training to coach Vietnamese SME exhibitors on successfully

marketing their capabilities to FFs prior to the commercial trade fairs. The next pre-supplier day

trainings are planned to take place in advance of the HCMC and Danang supplier days that will

be organized with AmCham.

C. TA 3: Outreach and External Communications

Until USAID LinkSME receives project approval and is registered with the GVN, the project will

refrain from engaging in high-profile outreach and external communications. As such, USAID

LinkSME has been working through stakeholder events with a lower profile. Press contacts have

been declined until after approval. A list of materials produced during this quarter for outreach and

external communications is included in Annex C.


USAID LinkSME was nonetheless invited as a guest speaker by the Vietnam Export Promotion

Agency (Vietrade) and MOIT to two high-profile events in early April held in conjunction with

Vietnam Expo, the 29th Vietnam International Trade Fair in Hanoi.

The first was the Investment Promotion Conference on April 11. USAID LinkSME’s topic was

“The Importance of Global Value Chains in Vietnam’s Economic Development”. The second

was the Vietnam Export Promotion Forum on April 12. USAID LinkSME’s topic was “How to

Participate in Global Value Chains”.

USAID LinkSME was the featured case study at a USAID MarketLinks global webinar on May

14 hosted by USAID’s Office of Trade & Regulatory Reform, with the topic “Growing Small

and Medium Enterprises: What Works?”. Over 200 development professionals participated

worldwide.

GTA 4: SME Advisory Group

Part of USAID LinkSME's mandate from USAID included forming an SME Advisory Group

comprised of relevant private and public-sector representatives. The purpose of the advisory

group is to provide strategic direction to the USAID LinkSME contract. It will serve similar to a

steering committee that will engage at strategic inflection points in the project. Chief among

these will be advising the sector selection process at the end of Phase 1, when the project will

expand from two to five sectors.

On April 24, the SME Advisory Group held its second quarterly meeting to update members on

USAID LinkSME project progress since the January 24 meeting; discuss project opportunities

and challenges as well as early lessons learned; review and discuss the USAID LinkSME Project

Document; preview the upcoming AmCham Hanoi Supplier Day; and be brought up to date on

upcoming USAID LinkSME events.

The group consists of seven members and two representatives from USAID (the COR and the

Director of EG2, with three Ex-Officio members. During Q3, the Executive Director of AmCham

HCMC resigned and the successor had not yet been named as of the end of the period. Table 3

below details membership:

Table 3: USAID LinkSME SME Advisory Group Membership as of Y1Q3

No Name Designation Organization Contact Details 1 Mr. Nguyen

Nguyen Dũng

Deputy Director

General

Administrative Procedure

Control Agency (APCA),

Office of the Government


Address: No. 1 Hoang Hoa Tham, Ba Dinh, Hanoi

Telephone: +84 904117989

2 Mr. Le Van

Khuong

Director of

Center of

Northern SMEs

Support

Enterprise Development

Agency, Ministry of

Planning and Investment


Address: Ton That Thuyet, Cau Giay, Hanoi

Telephone: +84 904872179

3 TBD Executive

Director

AmCham Ho Chi Minh

Chapter


Address: New World Hotel Suite 323, 76 Le Lai Street,

District 1, Ho Chi Minh City

Telephone: +84 2838243562

4 Ms. Nguyen

Thi Hanh

Deputy Director

of SME

Promotion Center

VCCI Email: [email protected]

Address: No. 9 Dao Duy Anh Street, Dong Da District,

Hanoi

Telephone: +84 904206626






5 Mr. Do Phuoc

Tong

Vice Chairman

Chairman

VASI

Ho Chi Minh Association of

Machinery and Electric

Enterprises (HAMEE)


Address: 310A Luy Ban Bich St., Ho Thanh Ward, Tan

Phu District, Ho Chi Minh City

Telephone: +84 903663866

6 Mrs. Do Thi

Thuy Huong

Member of

Executive Board

VEIA Email1: [email protected]

Email2: [email protected]

Address: 11th Floor, MIPEC tower, 229 Tay Son

Street, Dong Da District, Hanoi

Telephone: +84 903291771

7 Mrs. Le Thi

Hong Loan

Administrative

Manager

VAMI Email: [email protected]

Address: 203 - 205 Nguyen Thai Binh Street, District 1,

Ho Chi Minh City

Telephone: +84 2838216710

Ex-Officio Members

No Name Designation Organization Contact Details

8 Mr. Nguyen

Duc Tung

Chief Executive

Officer

Private Sector Development

Committee (Committee IV)


Address: R. 316, 3rd Fl Block C, UDIC Complex,

Hoang Dao Thuy St., Cau Giay Dist., Hanoi

Telephone: +84 868422777

9 Mrs. Pham Thi

Ngoc Thuy

Deputy Chief

Executive Officer

Private Sector Development

Committee (Committee IV)


Address: R. 316, 3rd Fl Block C, UDIC Complex,

Hoang Dao Thuy St., Cau Giay Dist., Hanoi

Telephone: +84 904992648

10 Mr. Phan Vinh

Quang

Deputy Project

Director

Mekong Business Initiative Email: [email protected]

Address: Cornerstone Building, 15th Floor, 16 Phan

Chu Trinh, Hanoi

Telephone: +84 903429990

E. TA 5: Baseline Assessment

Per the contract, 180 days after the AMEL Plan has been approved, USAID LinkSME must

complete a baseline assessment for seven short-listed sectors: agribusiness, auto parts,

electronics, furniture/wood processing, leather/footwear, metals, and textiles/apparel. The

baseline assessment incorporates a gender component. As the AMEL Plan was approved on

January 30, 2019, the baseline assessment will be submitted to USAID in Q4, on or before July

30, 2019. The baseline assessment team was finalized in the third quarter and the team conducted

field work in Vietnam in mid-June 2019. The team included a Task Leader, Economist, Gender

Specialist, and two Vietnamese Private Sector Specialists, supported by the USAID LinkSME

field team.

F. TA 6: Phase 2 Sector Selection Process

The Phase 2 sector selection is scheduled for Year 2.

G. Next Quarter Technical Activity Highlights

Activities planned for the fourth quarter (July 1 through September 30, 2019) include the

following:

GVN Liaison

● Obtain final project approval from GVN;

● Involve OOG and other GVN entities in Year 2 work planning; and







https://www.mekongbiz.org/our-team/[email protected]


● Set up work processes and management structures to be consistent with Project

Document (GVN) while enabling both full USAID contract compliance and high

performance against objectives.

SME Advisory Group

● Participate in Year 2 work planning; and

● Continue to get Advisory Group assistance with referrals and events.

Partnering with Other Organizations

● Build partner portfolio – continue to execute MOUs with additional chambers and

associations;

● Pursue MOUs with other referral sources and support organizations;

● Strive to establish cost-share and sustainability with partner organizations; and

● Continue coordination with the donor/implementer community.

Advancing the Linkage Process

● Implement risk-based FF acquisition strategy;

● Continue building FF portfolio and execute new FF MOUs;

● Identify products for localization with FFs;

● Develop RFQ packages and audit potential SME suppliers for FF MOU partners as

the process advances.

Linking SMEs with FFs

● Continue broad outreach, intake additional SMEs targeting as many in electronics and

metals as possible, and build online database;

● Pre-evaluate SMEs in focus sectors and enter SMEs that pass into the CRM system;

● Refine SME pre-evaluation process based on visit experience;

● Identify pre-evaluated SMEs from the CRM system that can serve specific FF

requirements, based on identified product needs;

● Introduce SMEs who pass pre-evaluation and have products that match to FFs;

● Audit SMEs that match;

● Conduct gap analysis for participating SMEs based on customer specifications and

specific requirements;

● Design and establish upgrade plans and participate in building competence of

potential SME suppliers;

● Familiarize potential SME suppliers with FF contracting requirements and

expectations; and,

● Learn lessons to refine matchmaking, linkage, and technical upgrade processes to be

systemic, scalable, and sustainable.

Outreach, Communications, and Events

● Project launch event in Hanoi upon GVN approval (date to be determined);

● Prototype an investment matchmaking conference for SMEs in the electronics supply

chain; and

● Work a full schedule of major trade events as per Table 4 below.


Table 4: Major Trade Events Planned for Q4

Event Date(s) Description

Supplier Day Da Nang July 5 Foreign firms and Vietnamese SMEs display their products,

meet other manufacturers and suppliers, establish business

relationships, and expand their networks. Organized by Da

Nang People’s Committee with Da Nang DOIT (Department

of Industry and Trade) and The Assistance Center for SMEs -

Central Vietnam (MPI - Enterprise Development Agency).

Exhibition booth to recruit firms into project and presentation

at event.

NEPCON Forum 11-Jul USAID LinkSME presentation at NEPCON Vietnam Forum

2019 (VEIA/Reed Tradex).

Long Hau Road Show July 23 To promote USAID LinkSME project to companies in metal

and electronics sectors in three industrial zones: Tan Thuan

Processing Zone, Long Hau Industrial Zone and Hiep Phuoc

Industrial Zone; to register FFs and SMEs into USAID

LinkSME database.

EWEC Da Nang 2019 August 3 - 7 The East-West Economic Corridor International Investment,

Trade, and Tourism Fair Da Nang 2019. USAID LinkSME

will have a booth at the exhibition to recruit firms into the

project database.

Vietnam Manufacturing Expo

(VME)

August 14 -

16

Vietnam’s Leading Exhibition on Machinery and

Technology for Manufacturing and Supporting Industries, at

I.C.E, 91 Tran Hung Dao, Hanoi. VME attracted nearly

8,000 trade visitors last year. LinkSME will organize a

pavilion and co-exhibit with 10 firms.

NEPCON Vietnam September

11 - 13

NEPCON Vietnam, a unique exhibition of SMT, testing

technologies, equipment and supporting industries for

electronics manufacturing, takes place in Hanoi. 10,000 trade

visitors last year. LinkSME will organize a pavilion and co-

exhibit with 10 firms.

Investment Matchmaking for

SMEs in the Electronics Supply

Chain

September

19

To connect Vietnamese investment funds with better-quality

SMEs who have high potential to serve the booming

electronics assembly market in Vietnam, in response to

foreign firms moving production to Vietnam due to the US-

China trade tensions.

Short Term Technical Assistance

● Develop broader SME Assessment Tool to analyze areas outside of production

operations (work currently in process as of end-Q3);


III. Progress related to Monitoring, Evaluation, and Learning USAID LinkSME received approval for the AMEL Plan from USAID on January 30, 2019. The

AMEL Plan included details for each indicator such as the indicator definition, target, frequency

of reporting, and disaggregation.

Quarterly targets were requested by USAID during Q3, submitted, and accepted in May. A

change to the targets for indicator O1 was submitted in May and is pending USAID approval.

A. Table of Indicators

Code Indicator

Baseline Targets Actual Year 1

Year

(Yr) 1

Life of

Project

Q1 Q2 Q3 Q4 Cum.

G1 Number of linkages created

within targeted industries and

sectors Type of Indicator: Outcome Data Source: Transaction

documents stored by FFs and

assisted SMEs Frequency: Quarterly Disaggregated by: Sector;

Location of SME; Age of firm;

Gender of SME owner; Age of SME

owner

0 0 52 0 0 3 3

G2 Number of replicated linkages

outside target firms Type of Indicator: Outcome Data Source: FFs and assisted

SMEs Frequency: Quarterly Disaggregated by: Not applicable

0 NA 12 NA in Phase 1

O1 Value of private sector

contributions Type of Indicator: Outcome Data Source: FFs and assisted

SMEs Frequency: Quarterly Disaggregated by: Sector; FF vs

SME

0 $100,000 $2.36

million

0 $5,588 $51,857 $57,445

O2.1 Volume of production among

assisted firms Type of Indicator: Outcome Data Source: FFs and assisted

SMEs Frequency: Annual, as of phase 2 Disaggregated by: Sector;



owner

0 NA TBD

(15%

increase

over

baseline)

NA in Phase 1

O2.2 Efficiency of production among

assisted firms TBD TBD

(20%

TBD

(20%

NA NA NA NA


Type of Indicator: Outcome Data Source: FFs and assisted

SMEs Frequency: Annual Disaggregated by: Sector;



owner

increase

over

baseline)

increase

over

baseline)

EG.2.

2-1

Number of firms receiving USG-

funded technical assistance to

export Type of Indicator: Output Data Source: LinkSME records on

technical assistance provision and

supplier days Frequency: Quarterly Disaggregated by: New firms;

Continuing firms

0 800 5,800 0 95 481 576

EG.5-

1

USD sales of firms receiving USG-

funded assistance Type of Indicator: Outcome Data Source: FFs and assisted

SMEs Frequency: Annual Disaggregated by: Domestic sales;

International sales

TBD TBD

(15%

increase

over

baseline)

TBD

(15%

increase

over

baseline)

NA NA NA NA

GND

R-2

Percentage of female participants

in USG-assisted programs

designed to increase access to

productive economic resources Type of Indicator: Output Data Source: LinkSME records on

technical assistance provision and

supplier days Frequency: Quarterly Disaggregated by: Not applicable

0 20% At least

30% over

LOP

0% 21% 45% 41%

B. Analysis of Indicators as Applicable

Indicator G1: Linkage is fully completed when goods/services are delivered and payments are

made. Thirteen POs were issued and three linkages were completed, of which two linkages were

from OnTops and East West Inc. and one linkage was from Anh Nghia and Ultralox.

Indicator O1: The amount was contributed by (1) Travelling expenses of Preformed Line

Products and Metosak to visit potential SMEs in Vietnam and (2) The contributions of private

sector companies for a portion of their attendance fees for four events (AmCham Hanoi Supplier

Day, Business Matching Day, HATEX Hai Phong and Saigon Auto Tech).

Indicator EG.2.2-1: Five events in Q3 include AmCham Hanoi Supplier Day, Business Matching

Day, HATEX Hai Phong, Saigon Auto Tech and Workshop on "How to Become a Qualified

Supplier to Foreign Firms", where firms received technical assistance. The quarterly target is 300


firms. Through the efforts of the SME linkage team and FF linkage team, 481 firms have

received USG-funded technical assistance to export.

GNDR-2: AmCham Hanoi Supplier Day and Business Matching Day are two events for all

sectors, and as such a lot of female participants were involved (accounting for 45 percent of total

participants).

IV. Project Management During this past quarter, USAID LinkSME completed the following critical project management

actions:

● Recruited and onboarded four local staff members: Monitoring and Evaluation Officer

(HCMC); Receptionist/Administrative Assistant (HCMC); SME Linkage Manager

(Hanoi); and a part-time ICT Manager (Hanoi);

● Advanced project approval from the Government of Vietnam; and,

● Moved into permanent office at 6th Floor, No. 10 Chu Van An, Ba Dinh, Hanoi.

A. Mobilization

Mobilization has been completed at this time.

B. Project Registration, Organizational Registration, and Local Offices

As the GVN requires that all Official Development Assistance projects receive approval prior to

operating officially, USAID LinkSME has been working closely with the OOG for project

approval. The OOG is USAID LinkSME’s identified governing body, with project ownership

within OOG assumed by APCA. Collaboration on technical agreement, document drafting,

constituent buy-in, and approval has been ongoing since September 2018. During Q3, the project

technical proposal passed the Prime Minister’s office; final approval of the Project Document is

awaited in Quarter 4. It is anticipated that once the Project Document is approved, changes to the

USAID LinkSME work plan will be necessary or will need to be incorporated into the year two

work planning as it is being written. USAID LinkSME Deputy Project Director/SME Linkage

Component Director is leading USAID LinkSME’s efforts in this process.


C. Management Approach and Structure

The project team staffing is included in the USAID LinkSME Personnel Organizational Chart

below. A full-sized Personnel Organizational Chart is located in the LinkSME_FY19_Q3_QPR

folder titled, “USAID LinkSME_Personnel Organizational Chart”

D. IESC Home-office Oversight and Support

The team conducts weekly field office/home office calls with the Director of Finance and

Administration to review administrative priorities and provide guidance and support.

IESC’s Home-Office Associate Vice President Chad Ford completed an oversight visit to review

and provide guidance as applicable on current systems, processes, client relations, and staff

members performance as well as seek feedback on home-office support. Mr. Ford met with

implementing partners, public and private counterparts, and USAID to review the level of

service and observe and discuss year one initiatives underway with senior leadership. Significant

time was allocated by the client to provide feedback and review recent activities, and discussions

on award fee timing and plan were initiated. Mr. Ford drafted and presented a contract

modification as well as scope of work for a Quarter 4 trip by the Senior Program Manager. With

the USAID COR, the Project Director, and Deputy Project Director/SME Linkage Component

Director, he met with government counterparts to thank them for their support and secured

feedback. He participated in strategy sessions with senior leadership, was provided

demonstrations on current management tools (SME pre-evaluation form, deep dive audit form)


and discussed the next round of planned technical tools, including a FF risk analysis due

diligence form as agreed to with the Mission Director and Deputy Mission Director. Mr. Ford

drafted and shared a suggested preparation plan for the Year 2 annual work plan, calendar, and

initial outline for the Project Director’s consideration. He conducted one-on-one sessions with all

HCMC staff members and the majority of Hanoi staff members as well as some members of the

SME advisory group to capture feedback firsthand on their experience to date and their

understanding of/hope for their role for senior management review.

E. Communications and Outreach

E1. Branding Implementation Plan and Marking Plan

A Branding Implementation Plan and Marking Plan for USAID LinkSME was approved by

USAID on October 4, 2018. The document describes in detail how USAID LinkSME will be

positioned and communicated to beneficiaries, partners, stakeholders and Vietnamese public.

E2. Communications Materials Production

USAID LinkSME developed a two-minute introductory video produced by Taj Media. The final

version of the video was approved by USAID in April 2019. The video is an effective tool to

promote LinkSME at various workshops, events and trade shows. It provides a quick overview

of LinkSME to a wide range of audiences. A link to the approved video can be found in Annex

C.

Weekly bullets and events calendars were submitted regularly to USAID during Q3.

E3. Outreach Activities

Because USAID LinkSME has not yet received official project approval from the Vietnamese

Government partners, IESC cannot yet promote USAID LinkSME through social or mass media.

Alternatively, USAID LinkSME has utilized outreach to communicate with the project’s private

sector stakeholders and beneficiaries, including FFs and SMEs. As mentioned above, in Q3

USAID LinkSME presented at the following events to introduce the USAID LinkSME project:

● Vietnam Expo 2019 – the 29th annual Vietnam International Trade Fair hosted by the

MOIT and Trade’s Vietrade, April 11-13, 2019, Hanoi.

● Supplier Day 2019 in Hanoi – the first-ever Supplier Day in Hanoi organized by

AmCham Hanoi with support from the VCCI and the Private Sector Development

Committee (Committee IV), April 25, 2019, Hanoi.

● Vietnam Private Sector Economic Forum’s Business Matching Day in Hanoi, hosted by

the Private Sector Development Committee under the Advisory Council of

Administrative Procedure Reform of the Prime Minister of Vietnam, May 3, 2019, Hanoi.

● HATEX metals sector event, May 10, 2019, Hai Phong.

● 15th annual Saigon Autotech and Accessories trade fair, May 23-26, 2019, HCMC.

● Vietnam Supporting Industries Forum 2019, Transforming Industry with Robotics and

Automation, 30 May 2019, Hanoi


● Workshop on “How to Become a Qualified Supplier to Foreign Firms”, partnered with

Investment and Trade Promotion Center (ITPC) Ho Chi Minh City, June 4, 2019,

HCMC.

F. Reporting

During this reporting quarter, the following contract deliverables were submitted:

1. Host Government/Foreign Value Added Tax (VAT) Report submitted on April 15, 2019;

2. Quarterly Performance Report for Y1Q2 submitted on April 29, 2019; and,

3. Quarterly Accrual Report submitted on June 14, 2019.

G. Next Quarter Project Management Support

The next bimonthly check in will occur in late July or early August 2019 between IESC home-

office and USAID/Vietnam.

The formal, public project launch will be held after project approval from the GVN is completed.

Presently, USAID LinkSME is planning for a Q4 launch.

V. Challenges and Proposed Solutions The primary challenge faced by USAID LinkSME in Q3 relates to the ongoing project approval

and registration process. USAID and the project are engaged with OOG in negotiations, with the

objective of having the project officially approved by the GVN in Q4. The process has been

moving forward positively since September 2018; however, it is a challenge that USAID

LinkSME is not in control of the time frame to ultimate approval, as that constrains the project’s

ability to engage with GVN technical partners or promote itself through public channels.

The solution is to work closely with the GVN to complete the process in as short a time frame as

possible and obtain approval. As of the end of Q3, the project technical proposal had passed the

Prime Minister’s office, had been signed off by all relevant Ministries, and approval of the full

Project Document was in final stages.

A second challenge is that the revised USAID/Vietnam risk policy in Q3 caused USAID

LinkSME to lose a substantial portion of its Year 1 FF portfolio, in which a significant amount of

effort and other resources have been invested. The firms put on hold had Vietnamese SME

suppliers in the pipeline and in most cases were on the way to completing linkages. This

reduction in the portfolio midstream will slow progress toward targets and reduce the number of

potential US-based partner firms in the future. The project revised its FF acquisition strategy in

response; a contract modification has been requested to allow better engagement with firms

moving supply chain from China who have not previously sourced from Vietnam, to further

enlarge the FF universe.

Annex A – Updated Implementation Plan

Please see excel document title: Annex A_USAID LinkSME Implementation Plan Gantt Chart.

S O N D Ja F M A M Ju Jl Au S Others Status Notes

A. Project Start-Up Activities

11.1 Start Project registration, identify office space, procure materials Beth Lien and Loc Office lease, registration In process Registration in final stages1.2 Finalize and sign contract with KPMG and TAJ Media Chad Signed contracts Complete1.3 Mobilize all personnel Chad IESC HO Offer letters and contracts Complete Key personnel mobilized as promised1.4 Set-up program management systems Chad Ron, Lien Manuals Complete Set up, continuous improvement1.5 Create environmental manual and train staff Env. Consultant Lien Environmental manual Complete Included in the AWP1.6 Complete year one work plan & validate with USAID Chad Local team Year 1 Work Plan (WP) Complete Approved 12/28/181.7 Respond to USAID feedback on Yr 1 WP within 15 days Ron Final approved WP Complete1.8 Develop survey form for post-event feedback Frank Complete Customize for specific events1.9 Establish automatic response email Ron Lien Complete

2 2.1 Determine date, initial agenda, speakers, and venue with USAID Ron AOR Mtg Notes Deferred2.2 Send "save the date" announcements to key partners Lien Email invite Deferred2.3 Prepare comms tools approved by USAID Docs (invite, banner, COM Docs Comms materials Deferred2.4 Finalize agenda, talking points, and presentation Ron Agenda, TP, and PwrPnt Deferred2.5 Conduct launch Comms w/ USAID input Event products/pictures Deferred

11.1 Additional Foreign Firm Identification Frank FFLM Foreign Firm list 1.11 Outreach through Chambers of Commerce Frank FFLM Foreign Firm sub-list On track New FF acquisition strategy 1.12 Outreach through industrial zones i.e. HEPZA Frank FFLM Foreign Firm sub-list On track based on revised USAID risk profile 1.13 Outreach through VEIA (electronics association) Frank FFLM Foreign Firm sub-list On track

1.14 Outreach to GOVN Agencies or Ministries (MPI and MoIT) Frank FFLM In process Pending project approval by GVN1.15 KPMG Target Long List Phuc KPMG team In process1.16 Establish online outlets (USAID, Chamber/Ass'n websites) Frank COM Deferred Pending project approval by GVN

1.2 Development of FF Request for Proposals Frank Completed RFP On track Initial RFQs complete, ongoing 1.21 Establish General Requirements for FF Partners Frank Ron and David Annex to AWP Complete 1.22 Sign MOU with FFs (3-5 by December) Frank MOU 3-5 in Dec; On track Seeking additional FF MOUs 1.23 Develop supplier specifications with FF Frank LMs, FLMs SME selection criteria On track Each FF has different requirements

1.24 Review success rate of MOU partners Ron Frank and Anh In process Early now for lessons learned1.3 SME Outreach and Two-Stage Shortlisting Lien LMs Database of SMEs On track Online database over 1000 entries 1.31 Determine/Select database for SME intake forms Lien Frank, Luke, Creation of database Complete Continuous improvement

1.32 Develop SME general screening criteria Lien Frank, David, Annex to AWP Complete 1.33 Call for SME apps through associations, IZs, direct outreach Lien Taj Media Circulation of applications On track Ongoing 1.34 General screening of SMEs for inclusion in CRM system Lien LM On track Ongoing 1.35 Conduct call to SMEs specific to FF requirements Lien LM SME applications received On track Ongoing 1.36 Screen applications using criteria established with FF in 1.22 Frank FLMs Shortlisted list of SMEs On track Ongoing1.4 Connect Short-listed SMEs to FFs Lien LM Final SME proposals On track Ongoing1.5 Final Selection of SME Suppliers by FFs Frank Signed FF-SME contract On track First linkages in Q3

1.51 Provide briefing with selected SMEs on key learnings Lien LM Key learnings report Not applicable Future1.52 Provide briefing with SMEs not selected on key learnings Lien LM Key learnings report Not applicable Future

1.6 Technical Assistance to SME Suppliers (as necessary) Lien LM Signed FF-SME contract In process Beginning with first linked firms in Q3 1.61 Determine supplier upgrade req's in conjunction with FFs Frank & Lien List of required upgrades In process Beginning with first linked firms in Q3 1.62 Establish pool of legal advisors Loc Lien, Frank, Pool of legal advisors est'd Deferred Through KPMG 1.63 Deliver "light touch" technical assistance, if needed Lien Completed tech assistance In process Beginning with first linked firms in Q3

22.1 Hold HCMC AmCham sponsored Supplier Day Frank Lien Training materials/attendee list On track 2.11 Sign MOU with AmCham Frank Lien MOU w/AmCham Complete 2.12 Sign MOUs with other participating Chambers Frank Lien MOUs with other Chambers In process 2.13 Determine date and venue for each event Frank Lien Date and venue On track HCMC October 16, Da Nang November 2.14 Publicize each event widely through SME and FF outlets COM Taj Media List of outlets On track Through AmCham

Pending official project registration by GVN. Aiming for July approval with launch thereafter, perhaps late August

Benchmark(s), Milestone(s), or Deliverable(s)

B. Technical Activities (TAs)

Responsible Team Member

Lead Pre

-Aw

ard

1. Establishing One-to-One Linkages Between FFs and SMEs

Activity Launch

Rapid Mobilization

2. Supplier Days

S O N D Ja F M A M Ju Jl Au S Others Status NotesBenchmark(s), Milestone(s), or

Deliverable(s)


Lead Pre

-Aw

ard

2.15 Hold events Frank Lien Participant list On track AmCham leading2.2 Hold sector-specific supplier days in Hanoi, HCMC Frank Training materials/attendee list On track 2.21 Sign MOU with VEIA,VAMI, and other electronic/metal events Frank Copy of MOU Complete MOUs with 14 associations as of Q3 2.22 Determine date, venue, and agenda for event Frank Date, venue, final agenda On track Calendar sent to USAID weekly 2.23 Publicize widely through SME and FF outlets Lien and Frank List of outlets On track

2.24 Plan and hold Supplier Day event Frank Taj Media Participant list, Presentations On track2.25 Follow up with SME and FFs that demonstrated interest Frank & Lien List of interested FFs, SMEs On track Ongoing

2.3 Pre-Supplier Day Training Training materials On track FTAs, FF requirements 2.31 Determine curriculum Lien Frank Completed curriculum In process 2.32 Select a venue and trainers Lien TEC Venue and trainer selection On track KPMG, in house 2.33 Widely publicize trainings Lien COM List of outlets On track 2.34 Hold trainings TEC Lien, Taj Media Survey/evaluation On track at events, road shows

33.1 Project launch COM TAJ Media Deferred Pending project approval by GVN3.2 Share success stories COM TAJ Media Edited success stories Deferred Pending project approval by GVN 3.21 Identify key press outlets COM TAJ Media List of press outlets Deferred Pending project approval by GVN 3.22 Identify key success stories COM TAJ Media List of success stories Deferred Future 3.33 Write up success stories COM TAJ Media Written success stories Deferred Future3.3 Convene meetings with partners to share learning experiences COM TAJ Media Partner meetings On track Individual meetings3.4 Other Outreach Events COM TAJ Media On track 3.41 Vietnam Supporting Industries Forum Ron Agenda Complete 3.42 Metalex Event (HCMC) Ron Complete 3.43 Outreach to collaborating orgs to ID additional events Ron On track Ongoing3.5 Provide content to USAID social media and online outlets COM Docs On track Weekly bullets

44.1 Scope and member profile development Ron David F. Scope Complete4.2 Propose SME Advisory Group Composition to USAID Ron Lien Proposal to USAID Complete4.3 Assemble SME Advisory Group Ron Lien SME Advisory Group formed Complete4.4 Convene SME Advisory Group quarterly Ron Lien, Frank, Meeting agendas On track Next July 254.5 Informal Consultations with key members (ongoing) Ron Lien, Frank Meeting notes, follow-up items In process Ongoing

5.1 Establish specific data/sectors to be assessed through baseline Ron List of sectors/data needs Complete5.2 Identify consultant(s) to conduct baseline assessment Ron Consultant CV Complete5.3 Conduct baseline assessment Consultant TBD Draft baseline assessment Complete

5.4 Report results to USAID Ron Final baseline assessment On track

56.1 Establish High-Level Sector Assessments to Develop Shortlist STTA Team Committee IV Sector shortlist Not applicable Future6.2 Recruit Sector Specialists STTA Team List of sector specialists Not applicable Future6.3 Conduct sector assessments in consultation with OGG STTA Sector Committee IV Sector assessments Not applicable Future6.4 Determine five sectors for Phase 2 activities STTA Sector Five selected sectors Not applicable Future6.5 Develop roadmaps for all five sectors STTA Sector Roadmaps for five sectors Not applicable Future

1.1 Complete and submit draft MEL Plan MELM HO MEL MEL Plan draft Complete

1.2 Finalize MEL plan with USAID feedback; Initiate MEL system MELM HO MEL Approved MEL Plan Complete MEL Plan approved January 30

2.1 Hold learning-focused staff meetings weekly Ron Lien, MELM/O Information sharing; minutes On track Ongoing2.2 Hold internal "pause and reflect" sessions quarterly Ron Lien, MELM/O Successes and challenges On track2.3 Extract "critical success factors" from FF/SME quarterly surveys Ron Lien, MELM/O Adapted interventions On track Ongoing from pre-evaluations

1.1 Prepare year 2 budget and activity planning forms Ron HO Year 2 budget, activity plans Not applicable Future

Fieldwork conducted at end of Q3; final report due in Q4

1. Year Two Annual Work PlanD. Administrative Activities

1. Phase 1 Monitoring, Evaluation, and Learning Start-Up

2. Learning from Transactions

C. Learning Activities

6. Sector Assessments

5. Baseline Assessments

3. Communication and Outreach

4. SME Advisory Group

S O N D Ja F M A M Ju Jl Au S Others Status NotesBenchmark(s), Milestone(s), or

Deliverable(s)


Lead Pre

-Aw

ard

1.2 Field HO AVP or manager to support year 2 work plan HO SOW, Trip report Not applicable Future1.3 Meet with other donors, partners, client firms Ron Chad Meeting notes, follow-up items Not applicable Future1.4 Respond to USAID feedback w/in 15 days, Submit Final Yr2 WP Ron Chad Year 2 Work Plan Not applicable Future

2.1 Initiate & submit combined Quarterly Progress and Financial Report Ron Quarterly report On track2.2 Submit all reports, analyses, policy recs., comparative studies, Ron All technical reports/materials Not applicable None in Q3

2.3 Submit summaries of all reports in Vietnamese, including key findings Ron All technical reports/materials Not applicable None in Q3

2.4 Initiate & submit Annual Progress report Ron Annual Report Not applicable Future

3.1 Work w/ HO MEL director to create database and data collection tools based on approved MEL Plan

Anh HO MELMEL database and data collection tools

Complete

3.2 Test and fine-tune data collection tools and methods Anh MEL OfficersTested and finalized data collection tools

On track Continuous improvement

3.3 Meet with PD ahead of all staff quarterly reflection meetings to review trends and progress towards targets

Anh Ron Meeting notes, follow-up items On track

3.4 Collect data for quarterly/annual reports Anh Data, Quarterly/Annual Report On track3.5 Submit updated performance reporting table to PD and HO for inclusion in quarterly and annual reports

Anh On track

4.1 Draft, finalize, submit Branding Implementation & Marking Plan COM HO Approved B&M Plan Complete4.2 Develop Communications Plan and establish social media accounts COM HO Comms plan, Online accounts On track Social media through USAID

5.1 Hold regular all staff administration and technical meetings Ron Agenda & follow-up items On track5.2 Conduct weekly teleconference with home office Ron Lien, IESC HO Agenda & follow-up items On track As required5.3 Produce HO to FO weekly communique Lauren Weekly communique Complete Online5.4 Conduct regular senior leadership meetings with COR Ron Lien, COR Agenda and meeting notes On track5.5 Hold regular administrative meeting with KPMG & TAJ Media Ron Lien Agenda and meeting notes On track Monthly5.6 Hold bi-annual knowledge sharing meetings with USAID projects Ron TBD Agenda and meeting notes In process Regular meetings with TFP held

6.1 Complete finance and operations assessment Ron STTA, Lien Finance & Ops Assessment Not applicable Future

6.2 Respond to the assessment Ron Lien Action plan matrix Not applicable Future

2. Reporting

3. Implementation of Monitoring, Evaluation, and Learning

4. Communications Plan

5. Project Management


Annex C – Summary of Electronic Attachments

The following list includes names of reports, success stories, and other relevant documents

prepared during the quarter, which are submitted separately electronically:

1. USAID LinkSME Project Introduction_Video

For ease of reference, IESC has included the final versions in the google shared folder for

USAID.

https://drive.google.com/file/d/1xDWl4pmWubhmx3sqqyBjFyBJCCvJO57Z/view?usp=sharing

Documents

USAID Linkages for Small and Medium Enterprises (LinkSME