BACKGROUND
Japanese companies have long led the manufacturing sector across Mekong countries, developing local supply chains with SMEs to engage in the global market. However, the push for global decarbonization requires these supply chains to adopt Environmental, Social, and Governance (ESG) principles to remain competitive. A major challenge is the lack of knowledge among SMEs in the region regarding the implementation of ESG principles.
To address this, Mekong Institute, supported by AMEICC, is implementing a 2-year project titled “Mekong Sustainable Supply Chains Transformation and Advancement.” This project aims to provide SMEs with access to knowledge, affordable financing, and technology to improve ESG performance while facilitating their transition through preparatory studies, capacity development, and collaboration with other stakeholders.
OBJECTIVES
The project aims to assess challenges and opportunities for local SMEs in Mekong countries and develop policy proposal that facilitate private sector transition towards ESG principles and promote ESG-related investments in supply chains.
- Assist SME suppliers in adopting ESG practices, aligning with the sustainability and competitiveness expectations of global and Japanese companies in the supply chain network;
- Create avenue for participation in the global supply chain, including meeting the necessary standards defined by buyers, and enhancing capabilities in implementing ESG improvements;
- Facilitate access to ESG financing options tailored for SMEs adopting green supply chain;
- Provide opportunities for the adoption and integration of environmental solutions;
- Initiate regional policy action on ESG adoption in the Mekong region to foster a regional ESG ecosystem; and
- Monitor ESG adoptions, record and share progress in terms of reduction in environmental footprints, social and governance standards improvements, improved market access and other key parameters.
TARGETS
- 150 SME suppliers in automotive, textile, and agriculture and food industry
DURATION
- Pilot Phase: 2 Years (September 2024 – August 2026)
GEOGRAPHICAL SCOPE
- Mekong Countries: Thailand, Cambodia, Myanmar, Vietnam, and Lao PDR
PROJECT ACTIVITIES
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Preparatory Study on Current Global, Regional and Local Situation; & Baseline Analysis of Selected Global Firms (including mapping of suppliers)
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Development of Training Curriculum; & Conduct of Training of Trainers (ToT)
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Recruitment of SMEs; & IT System Development
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Conduct Trainings to 150 SME Suppliers; Development of Decarbonization Plan; & Facilitation between Solution Providers and Financial Institutions
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Monitoring and Evaluation; & Reporting WEC- WG (Mekong-Japan)
OUTPUTS
- 150 Trained SMEs in Mekong Region (with a plan for future expansion)
OUTCOMES
- Outcome 1: ESG standards and compliance in Mekong supply chains are improved
- Outcome 2: SME supplier’s capacity to adopt ESG standards is increased
- Outcome 3: ESG adoptions and performance conforming to buyers’ requirements are improved
- Outcome 4: Access to finance to adopt ESG in the supply chain sector is improved
- Outcome 5: Regional policy action on ESG adoption to foster a regional ESG ecosystem is initiated and advanced
- Outcome 6: M & E system for monitoring ESG adoption progress is established
PARTNERS
- Association for Overseas Technical Cooperation and Sustainable Partnerships (AOTS) – AOTS is an organization for human resources development in developing countries, promoting technical cooperation through training, experts dispatch, and other programs.
- Abeam Consulting – ABeam Consulting is a leading consulting firm serving clients across Thailand, offering a range of services that include strategy development, business process re-engineering (BPR), IT, human capital management, outsourcing, SAP consulting, ESG, and operational support.
- Technology Promotion Association (Thai- Japan) – Technology Promotion Association (Thailand-Japan) is the leading industrial training centre for promoting knowledge, disseminating and transmitting new technology for growth, and advancing the economy and industry.
To know more about the project, please contact:
Mr. Madhurjya Kumar Dutta
Director, Trade and Investment Facilitation Department, Mekong Institute
Email: [email protected]
