ADRESSING COMPETITIVENESS CONSTRAINTS THROUGH A NATIONAL EXPORT STRATEGY Romanian Experience

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ADRESSING COMPETITIVENESS CONSTRAINTS THROUGH A
NATIONAL EXPORT STRATEGYRomanian Experience

• Dr. Costin Lianu
• General Director
• Export Promotion directorate

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Where we want to be

• Economic welfare for all citizen through
  enhanced competitiveness in international trade
  based on quality, diversity and excellence
• and
• To stimulate companies to be able to retain,
  capture, add and create value in the national
  value chain

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Competitiveness assessment

• Strengths and opportunities are located in human
  resource area (technical, science, multilingual
  skills )
• ..but competencies has to be improved in the
  same area (social capital , new skills,
  management skills)
• . Main conclusion of SWOT analyze development
  of human resources and social capital, main
  critical success factor

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First Paradigm Extension of strategic scope
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Core team
Second Paradigm PPP
Core team navigator
16 sector navigators
7 cross sector navigators

• 16 SECTOR TEAMS
• GARMENTS
• FURNITURE
• WINE
• GLASSWARE, CERAMICS
• CHEMISTRY
• STEEL
• MACHINE BUILDING
• ITC
• SERVICES
• AGRO-TOURISM
• ORGANIC FARMING
• BALNEAL SERVICES
• AUTOMOTIVE INDUSTRY
• HANDICRAFT
• ELECTRONICS,ELECTRICAL ITEMS
• CULTURE

• 7 CROSS-SECTOR TEAMS
• TRADE INFORMATION
• TRADE FINANCE
• QUALITY MANAGEMENT
• COMPETENCY DEVELOPMENT
• TRADE FACILITATION
• PROMOTION AND BRANDING
• RD, INNOVATION,TECHNOLOGIAL TRANSFER

More than 400 people were part of the process
starting with January 2005
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Third Paradigm value chain

• Retain and capture value
• New value chains
• Efficiency in the value chains
• Synergies between chains .
• \

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Managerial framework

• Vision
• Four Perspectives (development, sector, client
  and institutional)
• Objectives
• Initiatives
• Targets and impact measurement
• Responsible persons, resources, deadlines.
• \

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Strategic considerations

• Aspects highly important for competitiveness
• Responsible for initiatives are
• Companies at micro level
• Associations at mezzo level
• Banks,NGO, service providers
• Universities, RD
• Public and local administration
• agencies,ministries
• Financial sector
• Politicians
• Mass media, civil society.
• \

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Perspective I, developmentSC 1

• Regional development export oriented industries
  in development regions
• Employment generation and poverty reduction new
  kills and new opportunities for labor force
• Women promotion rural tourism, handicraft,
  local synergies for local export offer
• Environment protection capitalize on
  biodiversity and compliance to higher standards

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Perspective I ,SC 2, Clusters
MOBILA
ITC
MOBILA
PORTELAN, STICLA
CONFECTII
MOBILA
CONSTRUCTII NAVALE
INCALTAMINTE
CONFECTII
MOBILA
ITC
COMPONENTE AUTO, OUTSOURCING INDUSTRIAL
MEGACLUSTER DECORATIUNI, ARTIZANT,VIN TURISM
RURAL,CULTURA, BALNEO,AGRIC ECOLOGICA
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Perspective ISC3,Investments

• Territorial and sector marketing
• Modern Management of delocalization requests
• Export oriented FDI
• Clusters of SME for strategic FDI

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Perspective II sectorial,SC 4, sector priorities
(I)

• Garments and furniture design,diversification of
  capacities, new sortiments, new value chains,
  reduction of dependency on lohn or on one or
  two importers, full business .
• Outsourcing off-shore in ITC creative
  solutions, end to end services, credibility and
  branding, quality standards, new combination of
  skills
• Industrial Outsourcing (components for world
  value chains) new specializations at clients
  standards.

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Perspective II sectorial,SC 4, sector priorities
(II)

• New specializations in chemistry ,electronics,
  electrical items compliance with higher
  environment standards,efficient distribution
  channels, niche products, outsourcing)
• Organic farming, rural tourism, balneal
  services
• Increased production capacity, higher quality
  standards, branding, better legislation
• Wine, culture, glassware,handicraft local
  alliances , combined export offer, branding
• Services (events,transport,RD,consulting-engineer
  ing, financial , quality certification,environment
  ,etc) awareness
• and support for emerging companies and business
  associations

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Perspective II, sectorSC5, border in issues
development and diversification of capacities

• Services for capacity development
• Services for capacity diversification
• Services for competency development .

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Perspective II, sectorSC 6, border and
operational

• Better legislation for specific needs of sectors
  
• Better norms for trade facilitation in custom,
  transportation
• E-business
• Special focus on infrastructure in rural areas.

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Perspective II, sectorSC7, promotion and
branding

• Foreign trade network more adapted to the needs
  of the companies
• New competencies and diversification border-out
  services
• Promotional arsenal on target markets (target
  market / target products matrix)
• Branding (micro,composite-mezzo for sectors, and
  communities)
• Contribution to country branding
• Increased efficiency in promotional events.

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Perspective III, clientSC8, client segmentation

• Current exporters
• Aspiring exporters
• Potential Exporters

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Perspective III clientSC9, Quality management

• Institutional development
• Awareness campaigns
• Specialized services to meet exporters needs for
  quality certification
• Co-finance of company expenses on quality
  certification
• Better connection of quality management and brand
  building

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Perspective III, clientSC10, RD,innovation and
technology transfer

• Stimulating RD for exporters needs and better
  connection between innovators and entrepreneurs
• National management of technological transfer
• 19 regional de innovation centers
• Programs between companies, business associations
  and universities, research institutes
• Improved curricula in education.

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Perspective III, clientSC11, competency

• Export management skills
• Export Strategy skills and techniques
• Training of managers
• Modern infrastructure and highly specialized
  training courses
• Reduction of gap between real needs and demands

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Perspective III, clientSC12, Trade finance

• Structural dialogue between banks and exporter
  communities
• New competencies and better services at Eximbank
  
• New financial instruments and pro-export
  financial sector
• Financial risk management

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Perspective III, clientSC13,trade information

• Romanian Center for Trade Promotion ,coordinating
  role
• Measures to avoid duplication and stimulate
  specialization in network
• Better quality of information.

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Export Council, a central institution in
networking
Service
Delivery Network
Strategy Support Network
Export Council
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Perspective IV, institutionalSC14, Strategy
support network

• Permanent activities of the working groups
• Export Council, national coordinator
• New working groups for services
• Permanent strategic cycle 4-5 years
• Increased role of the Export Council.

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Perspective IV, institutionalSC15, service
delivery network

• RCTP, coordinating role
• Better networking
• Periodical meeting of the network members
• Regional, territorial dimension of the network to
  be further improved.

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Monitor and impact measurement through Export
Council

• Commission for strategy of EC designed NES
• Export Council approved the document
• The document will be approved by the Government
• EC will monitor and measure impact applying
  Balanced Score Card method.

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Ministry of Economy and Commerce, is playing a
decisive role in NES management

• .and the process was possible with the expertise
  and technical assistance of ITC Geneva
• For more details about NES see www.dce.gov.ro