Services and Business Cluster

Southern Economic Corridor

The project covers 19 provinces comprising of 8 on the Central Sub-Corridor and 11 on the Coastal Sub-Corridor of SEC connecting CMTV, excluding the capital and mega cities. These provinces have been chosen in line with the criteria: (i) less developed status; (ii) strategic locations promoting inter and intra trade along the sub-corridors; and (iii) industrial development potentials. SEC Sub-corridors and provinces are summarized in Table 1.

Table 1: SEC Corridors and Provinces

SEC Countries

SEC Corridors and Provinces

Central Sub-Corridor

Southern Costal Sub-Corridor

Cambodia

Banteay Meancheay

Battanbang

Pursat

Kampong Chhnang

Svay Rieng

Koh Kong

Kampot

Preah Sihanouk

Myanmar

Tanithayi Region / Dawei

Thailand

Prachinburi

Sa-Kaeo

Kanchnaburi

Ratchaburi

Chanthaburi

Trat

Vietnam

Tay Ninh

Kien Giang

Can Tho

Ca Mau


Product Clusters in 19 Sec Provinces Identified for the project


Cambodia


Province            Proposed product chains


BANTEAY MEANCHEY  -   SILK PRODUCTION


Silk and Cotton Yarn Production in Banteay Meanchey Province

Banteay Meanchey Province of Cambodia has been famous for silk production since the 1960s. In many parts of the province, silk production is a widespread livelihood activity, which contributes to the income of the locals. However, silk production...

BANTEAY MEANCHEY  -   SILK PRODUCTION


Silk and Cotton Yarn Production in Banteay Meanchey Province

Banteay Meanchey Province of Cambodia has been famous for silk production since the 1960s. In many parts of the province, silk production is a widespread livelihood activity, which contributes to the income of the locals. However, silk production is currently decreasing from year to year due to many factors. The project has selected Phnom Srok District for the cluster development with around 85 households involved.

Silk in Cambodia is generally produced on a small scale and it is a female-dominated activity. Men, however, assist in making and fixing the equipment. Today, the production of raw silk in Cambodia is low compared to other silk producing countries like Thailand and Vietnam. Local silk production (400 tons nationally) can satisfy only 2% of total domestic demand throughout the country. In order to meet this demand, raw silks are imported from neighboring countries, primarily from Vietnam to produce silk products.

The silk production in the province has been supported and promoted by the local authority. During the project implementation, 10 new looms have been installed for the purpose of increasing the productivity. One trainer has been supported to train new skills in producing new products for the members of the cluster. For market expansion, the group has also developed various activities such as developing a cluster web page, new fashion and design booklet, promotion material, etc.


BATTAMBANG - FRESH WATER FISH SAUCE


Fish Sauce Production in Battambang Province

Fermented fish in the form of fish sauce, known as ‘Tuk Trey’ in Cambodia, is a very important culinary adjunct providing micro minerals and micro nutrients essential to healthy life. Battambang host a large number of fish sauce factories out of a total of nearly...

BATTAMBANG - FRESH WATER FISH SAUCE


Fish Sauce Production in Battambang Province

Fermented fish in the form of fish sauce, known as ‘Tuk Trey’ in Cambodia, is a very important culinary adjunct providing micro minerals and micro nutrients essential to healthy life. Battambang host a large number of fish sauce factories out of a total of nearly 800 fish sauce factories throughout Cambodia. However, in the province they are mainly small-scale producers. The project selected Ponle Preah Atit Fish Sauce group which is located in Romchek 4 Village, Ratanak District, Battambang City. The group is considered a self-helped cluster with members (workers) who are vulnerable people living around the city and some parts of the province.   

Started by a few women, the group has been trained on how to make the fish sauce by an NGO in the early 2000s. Today, with the efforts from the group and support from the Department of Industry and Handicrafts the Ponle Preah Atit Fish Sauce group has become one of the leading fish sauce groups in the province. Under the project implementation and support, various activities related to the improvement of productivity and production quality have been carried out since early 2017. The activities aim at increasing sale volume and promoting export.

The activities implemented include the following: 1) Improving the bottle cleaning process by upgrading the bottles steaming machine. The group has repaired and changed the bottle steaming machine. This process will improve the quality of fish sauce. 2) The group purchased two pumping motors which each motor has capacity of 1.5 HP. The motors are used to pump the fish sauce from the steam pots to the storage pots. 3) The group also purchased two plastic cover machines (Sealer Machine) to seal the plastic cover for the fish sauce products. This will enhance the better look of the products and ensure they are ready for entry to a bigger market. Meanwhile, under the project support and assistance from the Department of Industry and Handicrafts, the group is in the process of new trademark registration which will make them more competitive in the markets.


SVAY RIENG - "SMACH" RICE PRODUCTION


“Smach” Paddy of Svay Rieng Province

Rice has been chosen as the top priority agro- product of this province considering the growing export of rice from this province and the numerous family-led farming and trading businesses that are un operation and employ a large section of the working population in this...

SVAY RIENG - "SMACH" RICE PRODUCTION


“Smach” Paddy of Svay Rieng Province

Rice has been chosen as the top priority agro- product of this province considering the growing export of rice from this province and the numerous family-led farming and trading businesses that are un operation and employ a large section of the working population in this province. Here, rice can both be scaled-up for export, promoting improved farming practices, commercialization through contract farming, facilitating access to finance to purchase high quality inputs during the sowing and cultivation time. Among various variety of rice, Srov “Smach” or the Svay Rieng Red Rice is one of the special product of the province and is always selected to be presented in many national trade fairs.

Smach peddy growing community in Kampong Rou District has been selected to participated in the project as it has potential in numbers of growing and export. Currently there are 492 farmers grow smach peddy rice. There are numbers of informal export of smach peddy to the country nearby, Vietnam, through Cambodian middle men to the Vietnamese traders which accounted to 70 percent of the total yield which 30 percent is selling to domestic market mainly within the province.

The project has intervened the smach peddy growing community in Kampong Rou District through different stakeholders such as the Department of Commerce, Department of Agriculture and Department of Industry and Handicrafts to promote the smach rice for a better competition in the market. Various action plans have been implementing with the community and as of now new logo and trademark of the product have been design and used. A new packaging design and vacuum sealer packaging machine have been produced and purchased under the supports from the project. Currently, a new building for stocking the products has also been constructed under the framework of the project intervention as well.


KAMPONG CHHNANG - POTTERY AND CERAMICS PRODUCTION 


Pottery and Ceramics Production in Kampong Chhnang Province

Kampong Chhnang, meaning ‘Port of Pottery’ in Khmer, is centrally located in the Tonle Sap Lake region of Cambodia and as the name suggests, is well known for its pottery. From one generation to another, locals have followed their...

KAMPONG CHHNANG - POTTERY AND CERAMICS PRODUCTION 


Pottery and Ceramics Production in Kampong Chhnang Province

Kampong Chhnang, meaning ‘Port of Pottery’ in Khmer, is centrally located in the Tonle Sap Lake region of Cambodia and as the name suggests, is well known for its pottery. From one generation to another, locals have followed their ancestors' tradition in making pots, vases and various objects from clay during off seasons.

The project has selected 10 members of pottery and ceramic production located in Banh Chhkoul Viilage, Chrey Bak Commune, Rolea B'ier District, Kampong Chhnang Province. The group has strong skills and capacity in the sector. However, lots of problems are faced by the cluster, including the poor infrastructures, lack of modern technology, no linkage to the market and exporters, … etc. This is not to mention challenges with the imported products.

Under the project implementation, immediate assistance was provided to the group to help them to improve their productivity and the quality of their products. Group representatives went to study the good practices of Pottery and Ceramics Production in Siem Reap province and came back to transfer this knowledge to the other members.

A new production building was built to extend the productivity line for a better production cycle. The two existing kilns have been renovated to improve the quality of heating and burning together with other necessary equipment such as the Temperature Gauge have been purchased to ensure the burning and heating. As a result, the group has improved and increased their production. Orders have increased 100 per cent from the clients. To prepare for future business a plot of land has been bought for new expansion.


Kampot - Flower of salt


Flower of Salt of Kampot Province

Flower of Salt (Fleur de sel in French) is a hand-harvested sea salt collected by workers who scrape only the top layer of salt before it sinks to the bottom of large salt pans. There is one community working on salt production in the province of Kampot and Kep, the neighboring province....

Kampot - Flower of salt


Flower of Salt of Kampot Province

Flower of Salt (Fleur de sel in French) is a hand-harvested sea salt collected by workers who scrape only the top layer of salt before it sinks to the bottom of large salt pans. There is one community working on salt production in the province of Kampot and Kep, the neighboring province. Over the past three years, salt production has seen overproduction (surplus) and could not be sold completely due to strong competition from China, Vietnam and Thailand. The Kampot Department of Industry and Handicraft has one office of Salt production to help look after and promote salt production in the province. However, the number of activities held is rather limited.

Under the support from the project, a cluster of natural flower of salt have been established aimed to improve the productivity and quality for the market demands and export. In the first phase, 7 members among 70 salt producers in Troey Koh zone have participated in the cluster.

Under the project intervention, 4 main action plans have been designed to improve the cluster of natural flower of salt productivity and quality. These include: Initiative Production Design Development, Instruments/Tool development, Standardized Product, and export procedure. Through these action plans, the members of the cluster have been instructed on technical harvest on the fields in order to get a good quality of the product as well as other technical support. A drying shelter has also been constructed with a total area of 50 m2.


Koh Kong - Sea water fish sauce


Sea Water Fish Sauce of Koh Kong Province

Koh Kong is a remote border province to Trat province of Thailand. The province is largely a forested mountainous area, not easily accessible by road or other means. Due to its location, the economy of the province depends largely on Thailand. Large assembly of SMEs or...

Koh Kong - Sea water fish sauce


Sea Water Fish Sauce of Koh Kong Province

Koh Kong is a remote border province to Trat province of Thailand. The province is largely a forested mountainous area, not easily accessible by road or other means. Due to its location, the economy of the province depends largely on Thailand. Large assembly of SMEs or clusters is rather absent in the province. During the first implementation of the project, a cluster of sea water fish sauce was selected to participate in the project.

Koh Kong Sea Water Fish Sauce Cluster is the only fish sauce producer in the province. Begun in 2012 as a family business, they started to have a wholesale office in Phnom Penh recently and continue to expand their business. Koh Kong Fish Sauce employs 6 workers and processes 156 tons of raw materials (sea fish) only. Over the last four years of operation (2012 – 2016), Koh Kong Fish Sauce Manufacture has produced 108,000 liters of fish sauce, of which 100% is sold domestically. Recently, the competition from fish sauce imported from Vietnam and Thailand has become very high.

The project has supported the cluster in gaining a better product visibility especially on the standard and stock. A brand-new bottle washing machine has been purchased to serve the purpose of cleanness and hygiene of bottles before its processing. A storing hall has been extended with the installation of virus killing lamps. In addition, the group has been encouraged to participate in various activities for expanding its market, such as registration with market promotion association, attending trade fairs, etc. 


PREAH SIHANOUK - DRIED SHRIMP PROCESSING


Preah Sihanouk Dried Shrimp Processing

Sun-dried shrimp has been a major economic activity among the communities along the coastline of Preah Sihanouk province in Cambodia. Many households and small and medium producers engage directly with shrimp-drying as a major or alternative livelihood activity.

Un...

PREAH SIHANOUK - DRIED SHRIMP PROCESSING


Preah Sihanouk Dried Shrimp Processing

Sun-dried shrimp has been a major economic activity among the communities along the coastline of Preah Sihanouk province in Cambodia. Many households and small and medium producers engage directly with shrimp-drying as a major or alternative livelihood activity.

Under the project intervention, a total 11 members out of 25 households have participated in the cluster located in Tonob Rolok District, Preah Sihanouk Province. The main market of the Preah Sihanouk dried shrimp is the domestic market around the country (accounting for 70% - in retail and wholesale). Another 30 percent is exported to Vietnam and Thailand through unofficial traders.

Under the action plans of the project implementation, various outstanding results have been accomplished such as upgrading the production cycle/line in order to improve the production quality. Meanwhile to have a better look and be ready for entering supermarkets and export business, a new logo and packaging design were also made. Currently, the cluster is in the process of Cambodia's commercial registration, trademark and barcode registration.


MYANMAR


province            Proposed product chains


TANINTHARYI (DAWEI)- MACKEREL FISH (PLA TUU)


Dawei Mackerel Fish Cluster

Dawei Mackerel Fish Cluster Development started in September 2016. The project was initiated by MI, the Government of Myanmar and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). On the ground, the project has been led by three stakeholders...

TANINTHARYI (DAWEI)- MACKEREL FISH (PLA TUU)


Dawei Mackerel Fish Cluster

Dawei Mackerel Fish Cluster Development started in September 2016. The project was initiated by MI, the Government of Myanmar and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). On the ground, the project has been led by three stakeholders namely (i) Department of SME Development, Ministry of Industry; (ii) Department of Fisheries, Ministry of Agriculture, Livestock and Irrigation; and (iii) Dawei District Fisheries Federation (DDFF).

Currently, three clusters are formed in three different villages namely Thabouseik / Pyingyi, Kampany and Maungmagan. The objective of the clusters is to create a sustainable export-based fishery (mackerel) sector.


THAILAND


PROVINCE            PROPOSED PRODUCT CHAINS


KANCHANABURI - BANANA FRUIT CLUSTER


Banana Fruit Cluster

Siam Banana is the company that produces processed Banana as snack. “Banana (Ducasse: Kluai Nam Wa)” is used as main raw material for making processed banana products. The company does deep-fried banana to make crispy fruit snacks in different flavors.

Siam Banana has formed the cluster...

KANCHANABURI - BANANA FRUIT CLUSTER


Banana Fruit Cluster

Siam Banana is the company that produces processed Banana as snack. “Banana (Ducasse: Kluai Nam Wa)” is used as main raw material for making processed banana products. The company does deep-fried banana to make crispy fruit snacks in different flavors.

Siam Banana has formed the cluster with a group of farmers who do banana plantation in Kanchanaburi. Kanchanaburi is the well-known provinces for Banana Plantation. Most of the cluster members are located in Kanchanaburi province, providing advantages in terms of communication, transportation and taking care of the members.

From the experience from previous years of the natural problem on shortage of fresh banana productivity, this year the cluster have foreseen the lack of raw material problem, so they have planned to do tissue culture of the Yak banana (in cooperation with Kasetsart University) which they selected the Yak banana breed because they have found that its suit to be the raw material for their products as well as easy and good for growing for the farmers. The cluster also do the seminar and learning visiting to the cluster members and making brochure to make more understanding about how to plant the Yak banana to their cluster members under the support from the MI.       

Now the first culture tissue from Kasetsart University has been brought to take care in the learning center which the cluster needs to grow it in the plastic bag around 2 weeks and then will distribute the small banana plants to the cluster members with the brochure on how to grow the banana.

After the training program on value addition to the product at the MI, the cluster also came up with the new packaging into the paper box to send to the upper market (chain stores, TOP, etc.) which the selling price has increase about 40% from the old plastic packaging.

Currently, the cluster has 15 members and 70% of the product is sold domestically in Thailand. The goal of the cluster is to increase production, improve standard of the Banana products and create new banana flavors serve to the markets. 


CHANTHABURI - DURIAN QUALITY PRODUCT CLUSTER


Durian Quality Product Cluster

Durian Quality Product Cluster in Chanthaburi, Thailand was formed as a result of the implementation of the Cluster Development Plan (CDP). The CDP was initiated by the Mekong Institute (MI) as Action Plan (AP) on the Regional Training on SME Cluster Development and...

CHANTHABURI - DURIAN QUALITY PRODUCT CLUSTER


Durian Quality Product Cluster

Durian Quality Product Cluster in Chanthaburi, Thailand was formed as a result of the implementation of the Cluster Development Plan (CDP). The CDP was initiated by the Mekong Institute (MI) as Action Plan (AP) on the Regional Training on SME Cluster Development and Export Consortia Formation and implemented by the Makham Agricultural Cooperative in Thailand’s Chanthaburi Province. 

Currently, the cluster has 57 members and 80% of the product is exported overseas. The goal of the cluster is to promote the integration of durian producer members by way of joint development plan for future over supply of fresh durian in the market (the cluster forecast that there will be over supply of fresh durians in the next 5 years), production and marketing the cluster products for the mutual benefit.

The cluster also proposed the plan to do processed durians in the future, since they might need more investment on manufacturing such as warehouse, freezing room and equipment to fry durians. However, this year the fresh durians are still good to sales as fresh durians. Thus, the processed durians is on process as the backup plan when over supply situation comes.

The Durian Quality Product Cluster is currently located at 229/2 Moo 1 Makham Sub-District, Makham District, Chanthaburi 22150, Thailand.


PRACHINBURI - NAKHAM ORGANIC RICE PRODUCT CLUSTER


Nakham Organic Rice Product Cluster

Nakham Organic Rice Community Enterprise was established in 2010. The founder, Mr. Sivapoch Kuvichitsuwan, has seen the importance of the healthy rice and invited the members who interested in producing the organic rice in Nakham area to join the group....

PRACHINBURI - NAKHAM ORGANIC RICE PRODUCT CLUSTER


Nakham Organic Rice Product Cluster

Nakham Organic Rice Community Enterprise was established in 2010. The founder, Mr. Sivapoch Kuvichitsuwan, has seen the importance of the healthy rice and invited the members who interested in producing the organic rice in Nakham area to join the group. Originally, the cluster started from producing organic Jasmine rice and expand into unique grains; Riceberry, Sang Yod, Sin Lek and Nin Rice, which are unique and outstanding grain.

After the training program with MI and implementation of Cluster Development Plan (CDP) as Action Plan (AP), the group has applied for the certification from the Food and Drug Administration (FDA) Thailand and from Organic Agriculture Certificate Thailand (ACT) which would help the cluster to expand the markets in the future. With the support from MI, the Cluster also brought one set of dehumidifier that increased the production capacity from 40 Kgs per day to 80 Kgs per day as well as develop the new packing design to improve the market target to the younger customers with the Cluster expected to increased sales volume by 50%

Currently, the cluster group has 15 members and 100% of their product is sold domestically in Thailand. The goal of the cluster is to increase product capacity and revenue for members. 


RATCHABURI - AROMATIC COCONUT CLUSTER


Aromatic Coconut Cluster

There are many fruits which are grown at Damnoensaduak district of Ratchaburi Province. One major one is the aromatic coconut. 

The Group of Export Organic Fruit Product was established in March 2007. The objectives of the group are to (i) produce standardized goods, develop quality...

RATCHABURI - AROMATIC COCONUT CLUSTER


Aromatic Coconut Cluster

There are many fruits which are grown at Damnoensaduak district of Ratchaburi Province. One major one is the aromatic coconut. 

The Group of Export Organic Fruit Product was established in March 2007. The objectives of the group are to (i) produce standardized goods, develop quality as well as gather non-toxic fruits; (ii) bring the products of members to adjust, pick out, arrange, and format in order to increase valuable products; and (iii) gain the knowledge from an agricultural officer and the committee. The group goes out to advise and take care of members to produce the good quality products.

With the partial support from MI, the group applied for the Global G.A.P certification in January, 2017 and received the certification in March, 2017 as the results the group expand market and get one more additional customers and total sales have increased by 30%

Currently, Aromatic coconut cluster has 15 members and 90% of the product is exported which major countries include China, Singapore, Indonesia and Hong Kong. The goal of the cluster is to produce standardized aromatic coconuts and develop their quality, as well as to gather non-toxic aromatic coconuts.


SA-KAEO - AROMATIC HERB CLUSTER


Aromatic Herb Cluster

Sa-Kaeo Community Enterprise was established in October 2007. It has brought ancient and many expertized local wisdom. Ms. Aoytip Jumjod, the founder of Sa-Kaeo Community Enterprise, has inherited process of making perfumery and incense from ancestors, expert and local doctor.

The Cluster...

SA-KAEO - AROMATIC HERB CLUSTER


Aromatic Herb Cluster

Sa-Kaeo Community Enterprise was established in October 2007. It has brought ancient and many expertized local wisdom. Ms. Aoytip Jumjod, the founder of Sa-Kaeo Community Enterprise, has inherited process of making perfumery and incense from ancestors, expert and local doctor.

The Cluster has improved the product and skills along a year with the MI project such as registering for the new logo (on process of received an approval certificate, expected at the end of the year 2017), develop new product label, creation of the product brochure, as well as applied for the certifications from the Food and Drug Administration (FDA) Thailand, from Ministry of Public of Health for free sales products in Thailand which made the group has expanded the targeted customers and tend to increase the sales volume since the Cluster has new customers from Taiwan, China, and India to come to negotiate on exporting their product to those markets.

Currently, the cluster group has 7 members and many of their product is sold domestically in Thailand. The goal of the cluster is to increase production and sales volume. 

The cluster is located at 543 Suvarnasorn Road, Tumbol Ta-Kaseam, Amphoe Mueng, Sa-Kaeo, Thailand.


TRAT - KO KUT COMMUNITY BASED TOURISM CLUSTER


Ko Kut Community Based Tourism (CBT) Cluster

Tourism Promotion Club of Ko Kut was established in 2012. With the partial support from the Mekong Institute (MI), the Cluster co-organized the running event activity in May 2017 which promoted the conservation tourism in Ko Kut and continued to create...

TRAT - KO KUT COMMUNITY BASED TOURISM CLUSTER


Ko Kut Community Based Tourism (CBT) Cluster

Tourism Promotion Club of Ko Kut was established in 2012. With the partial support from the Mekong Institute (MI), the Cluster co-organized the running event activity in May 2017 which promoted the conservation tourism in Ko Kut and continued to create and develop activity to the community.

Currently, the cluster group has 65 members and 50% of tourists are from overseas. The goal of the cluster is to promote sustainable local community based tourism (CBT) style at regional and international level. The features of the cluster include (i) eco-friendly tourism; (ii) income distribution to the community; (iii) unity with all sectors; and (iv) organization of new sports tourism activities to attract more tourists.