MEET-BIS Vietnam

SHERATON HOTEL, Hanoi

14 March 2014

LEARNINGS FROM A MEET-BIS PERSPECTIVE Challenges, Opportunities, Partnerships & Sustainability

This project is funded by the European Commission’s

Switch-Asia program (project 2008 VN 171-201)

This publications has been produced with the assistance of the European Union. The contents of this publication are the sole

responsibility of MEET-BIS Vietnam Project and can in no way be taken to reflect the views of the European Union

INTRO OVERVIEW

1. ABOUT MEET-BIS

Its set up and the results

2. KEY OBSERVATIONS

General challenges

A2F specifics

Partnerships

Example of partnerships

Sustainability

Take aways for MEET-BIS Cambodia

3. CONCLUSION

Summary

1. ABOUT MEET-BIS

KEY FEATURES

Creating opportunities through catalyzing functions

• MEET-BIS: A 80% EU funded project with total

expenditure of € 1.6 Mln, during period 2009-2013

• To assist key private sector players (suppliers) in North

Vietnam to develop commercial markets for their energy

and water saving products targeting urban SMEs

• As Facilitator (connector, organizer and capacity builder)

• As Innovator (catalyzing, developing)

• Investigate financing options for cleantech products

CONCEPT Replicability/ sustainability via market

mechanisms

KEY RESULTS

Realised financial & environmental impacts

• EE/WS promoted to 3,852 SME’s

• Interest of 1,364 SMEs in such options, of which 423

invested

• Value total sales by 9 suppliers to SMEs VND 66

million (€ 2.5 million)

• CO2 reduction of 9,842,559 kgCO2 realized during

project period of sales between 1-1-2011 – 30-6-2013

• Present EE/WS investments contribute to a yearly

climate change mitigation of 9,788,036 kgCO2

9,9 million kgCO2 equals :

driving around the world 1,800 times with a new car;

or the annual emission

reduction of a 4 MW

hydropower plant in

Vietnam.

AROUND THE WORLD

2. KEY LEARNINGS AND

OBSERVATIONS

SOME CHALLENGES

CHALLENGE OUR ACTION

Finding the SME: a database

challenge.

Screening, verifying,

developing own database

Get attention from SME:

They are too busy, other

priorities, too much unclear

info

Simplify technology, make it

tangible, work with (local)

stakeholders to reach SME,

Follow up (calling etc)

Getting Cleantech companies

willing to join the project

Patience, trust, show by

example MB value. Get visible

Lacking relevant

'mainstreamable' water

saving technology

MatchMaking with International

firm.

Access to Finance …..

ACCES TO FINANCE

Project set up aimed to provide financing options for

offered EE products. This has not been achieved:

• Despite many explorations and cooperation's on

Access to Finance: IFC, Green trust funds /credit

lines, banks, ESCO concepts, etc.

• Many funds do not have favorable conditions to SME

• Bank for SME unattractive due to rate and process

• Bank sector in difficult period, risk averse and limited

expertise on EE Finance

But…..toward end of project an opportunity identified:

• Lease firms. Matchmaking in progress, key is

assurance on collateral quality and value over time

PARTNERSHIPS ARE KEY

PARTNER Note Approach

SME Demand Awareness creation,

matchmaking

Association Demand/ potential

facilitators

Awareness, capacity

building, connecting

Technology

Suppliers

Supply Capacity building,

matchmaking, connecting

Government Policy Collaborating in

communication

(I)NGO Development

strengthening

Strengthening for impact

maximizing

Finance

Institutes

Enabling

environment

Product development

EU Donor Flexibility

PARTNERSHIPS OPPORTUNITIES

An illustration/ example: The CATBA experience

Peoples

Committee

71 Hotel

SMEs

8

suppliers

ESRT-

project

Hotel

Association

New water

product

intro

Leading to:

Project collaboration within 2 projects and

with 3 parties: ESRT, Hotel Association,

MEET-BIS to build capacity within association

Haiphong

TV docu

Ministery of

Tourisme:

Green

Lotus

WORKING

TOGETHER

CREATES

SYNERGY

SUSTAINABILITY?

• Market mechanism as driver of Green Growth

€ 2.5 mln sales indicate existence of a growing market,

(up for grabs!).

Tools shared with 50+ suppliers

Some updates on what happened after the project:

• Continue buying water saving technology by Sheraton

• 2 staff members employed by technology supplier

• Supplier joining Chief Engineering (Association), MB staff

ad hoc facilitation

• Co developed transfer of knowledge to VEEB – REEEP

project (website) - http://e4g.org/en/

• Energy news (ECC) via website associations

MEET-BIS CAMBODIA IS BUILDING

UPON VN EXPERIENCE

1. Similar market mechanism to embed sustainability.

2. Be quicker on the ground/ visible:

• Convince cleantech suppliers from day -1; Vietnam as

show model provides visibly added value project.

• Pro-active seeking Government and (I)NGO partners

from the start

• A2F priority in project :

• Dedicated staff and increased budget

• Systematic approach to identify effective demand for

leasing products, feasibility ESCO model,

crowdfunding, donor and climate funds

• In proposal stage identified 2 potential finance

partners (Alceda, FBT)

3. IN CONCLUSION

SUMMARY

1. Innovative and cost effective marketing helps to increase SME

sales

2. Building relationships with private sector takes time

3. € 2.5 mln sales indicate existence of a growing market

4. Government is key, as partner in promoting EE/WS, and as

leader setting policy

5. (I)NGO projects can strengthen each other

6. Sustainability is also thinking about the next project, and

previous projects together with development partners 7. Access to affordable finance for SMEs is challenging and

required systematic approach and effective demand

8. Need of flexible partners and donors; Development of

commercial markets takes time, and require flexibility

THANK YOU

This project is implemented by:

• ETC Foundation (www.etc-international.org)

• AdaPPPt / Triodos Facet (www.encludesolutions.org)

• Aidenvironment (www.aidenvironment.org)

• Research Center for Energy & Environment (www.rcee.org.vn)

• Vietnam Chamber of Commerce and Industries

For more information, please visit the MEET-BIS website:

www.meet-bis.vn / www.meet-bis.org

QUOTE FROM A SUPPLIER

“As a small technology supplier, we lack the

know-how in sales and marketing.

MEET-BIS helps us to approach the market in a

different way.

We used to depend mainly on our relationships

to win projects. Now we approach a wider

group of potential customers.

My staff learns a lot on how to reach out to the

SME and to network with other suppliers.”

MANY GO FOR THE FEW BIG FISHES. WHILE THERE

ARE SO MANY SMALL FISHES OUT THERE

Fish efficient and effective!

“WHY THE SME MARKET?”