Feasibility Study of Garment

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VIII. Feasibility Study Study of the Domestic Production of Garments (Men’s Boxer Briefs) in Ethiopia, Tanzania and Zambia

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VIII.1.

Background and Objective

The purpose of this analysis is to determine the potential for competitive production of apparel in Ethiopia, Tanzania and Zambia, particularly for the purpose of import substitution. This section section conducts an outline feasibility study using using boxer briefs  production as a representative example of a product in the apparel industry that currently is not being produced domestically. The analysis is concerned with assessing the  possibilities of apparel production as an economic proposition, taking one product as a model. VIII.2.

Product Selection Method

Following a review of the first product screening in which 40 products were selected for consideration for the value chain analysis and feasibility study, the World Bank (WB) and Global Development Solutions (GDS)/HQ teams immediately agreed on seven out of the ten products needed for the analysis. The seven products selected by the teams teams were as follows: 1. Apparel: a. Polo shirt; and  b. Underwear 2. Agribusiness: a. Milk; and  b. Wheat milling 3. Leather: a. High-end sheepskin loafers 4. Wood: a. Windows/French windows and frames 5. Metal: a. Padlocks. To finalize the selection of the remaining products from the wood, metal and leather sectors, based on the Africa Competitivene Competitiveness: ss: Phase  Phase 1.1 - Preliminary Preliminary Product Screening Screening in Ethiopia   report (July 2010), the WB and GDS/HQ teams chose six products as  potential candidates to be included in the list of the final ten products to be the target  products for the value chain analysis and feasibility study. The six products included the following: 1. Wood products: a. Wooden doors; and  b. Wooden chairs (not upholstered). 2. Leather products: 335

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3.

a. Leather golf gloves; and  b. Sports footwear of leather. Metal products: a. Metal doors, window-frame (security window frame); and  b. Aluminum doors and windows.

In order to screen the final six products, a product screening survey was developed which revolved around six factors: 1. Whether these products are currently produced by companies with less than 50 employees; 2. If companies identified in #1 above can be set up with less than US$100,000 in investment capital; 3. The minimum level of skills and know-how required to produce the products; 4. Whether the products produced by the companies in #1 are being exported; 5. Whether products produced by companies in #1 are consolidated by brokers or other intermediaries for exports; and 6. Whether companies identified in #1 can readily access raw material inputs in the market to produce the products. These questions were posed to the wood, metal and leather sector associations in both China and Vietnam. Following interviews with sector associations, associations, additional interviews were conducted at the firm level to identify specifically the level of investments and minimum level of technical skills required for an entrepreneur or existing SMEs to set up a production operation. These questions were posed to existing operators in China and Vietnam to identify whether: Barriers to market entry, particularly from a financial and skills requirement, were sufficiently low to allow entrepreneurs and SMEs in Ethiopia to easily establish operations; and These products are currently being produced by SMEs in China and Vietnam, and are effectively being sold in local and export markets. 



The product screening survey identified the following products as viable candidates to be targeted for the value chain and feasibility analysis. 1. Wood product: a. Wooden chairs (soft wood); and  b. Wooden door (semi-solid). Although French windows and their frames made of wood had originally been  preselected for analysis, a decision was made to opt to analyze both wooden chairs and wooden doors. This decision stemmed stemmed from the the fact that French 336

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windows require glass thus introducing an outside factor that could influence the manufacturing of the final product. Wooden doors (without (without glass) glass) and wooden chairs (without upholstery) are more representative of wood  processing exclusively. 2.

Leather products: Leather golf gloves or sports glove of comparable structure and weight.

3.

Metal products: Both the pre-selected products (security window frame; and aluminum doors and windows) were screened out of the selection due to various factors including high initial investment requirements. As a result, result, further analyses of products identified during the preliminary product screening were conducted. Interviews with metal metal sector sector associations associations and enterprises currently operating in China and Vietnam, as well as interviews with existing operators in the fabricated metal products sector in Ethiopia identified crown corks (bottle caps) as a viable candidate to be targeted for value chain analysis. Crown corks currently are produced in four of the countries (excluding Tanzania), but Ethiopia continues to import substantial volumes of this product, including including imports from China. As a result, result, crown corks have been chosen as the final fabricated metal product to be the focus of a value chain analysis in the target countries. VIII.2.1. Respective Government Definitions of Small, Medium and Large Enterprises in Ethiopia, Tanzania, Zambia, China and Vietnam

: For Ethiopia, the classification of enterprises into small, medium and large large Ethiopia  scale depends on a number of variables such as level of employment, turnover, capital investment, production production capacity, level of technology and subsector. Accordingly, the following scales are referred to the classification of enterprises in the Ethiopian context (Table 196). 196).

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Sub-se ctor

Number of Employees Small mall Scale ale Medi edium Sc Scale ale Larg arge Sc Scale ale

Textile and Apparel 5-9 Leather 2-10 Diary 2-10 Wheat 2-10 Wood Processing Process ing 2-10 Metal 2-10 Source: Ethiopia CSA and FeMSEDA

10 – 49 21 – 50 21 – 50 21 – 50 21 – 50 21 – 50

above 50 above 51 above 51 above 51 above 51 above 51

Re ma rk

 According to the Centra Centrall Statistics Agency (CSA)  According to Feder Federal al Medium and Small Enterprise Development  Agency  Agency (FeMSEDA) (FeMSEDA)

: For Tanzania, the classification classification of enterprises into small, medium and large large Tanzania  scale depends on a number of variables such as level of employment and capital investment in machinery. The classification classification cuts across across sectors and subsectors of the economy. Accordingly, the following scales refer to the classification classification of enterprises enterprises in the Tanzanian context (Table 197). 197). Note that that the small enterprise type is most appropriate for all sectors studied in this analysis. Table 197: Company Size Classification Structure for Tanzania

Ca te gory Mic ro enterprise Small enterpris e Medium enterprise Large enterprise

Capital Investment in Machinery Employe e s (TZS million) Re ma rks 1-4 Up to 5 Majority in the informal s ec tor   5 - 49 5 - 200 Most in the informal s ec tor   50 - 99 200 - 800 Mos t in the formal sector   100+ 800+ All in the formal s ector  

Source: Tanzania Chamber of Commerce, Industry and Agriculture (TCCIA)

: Zambia classifies classifies enterprises enterprises as micro, small, medium and large based on Zambia  several factors including number of employees, annual revenue and capital investment. The capital investment category is further delineated by whether the firm is engaged in manufacturing or if it is a trading/services firm. firm. For microenterprises, the the minimum revenue and investment requirements are kept intentionally low in order to encourage registration, although few microenterprises actually register. Table 198: Company Size Classification Structure for Zambia Capital Investment Investment Annual for Manufacturing Manufacturing Revenue Firms Classification Employees (ZMK million) (ZMK million) Micro < 10 < 20 < 10 Small 10 - 50 150 - 250 80 – 200 Medium 51-100 300 - 800 200 – 500 Large > 100 > 800 > 500

Source: Zambia Development Agency

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Capital Investment for Trading/ Services Firms (ZMK million) < 10 150 151 - 300 > 300

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: The China government is challenged in defining sizes of firms. Temporary China  definitions have been used for the past several years, and the government promised to revise the standard in 2010. The definition from the National Bureau of Statistics of China is complex. The definition was published in 2002 jointly by the Ministry of Finance, National Bureau of Statistics of China, State Economic and Trade Commission (no longer exists), and China Planning Commission, which has since split and exists as the State Development and Planning Commission (SDPC) and the National Development and Reform Commission (NDRC). A simplified presentation of the company size classification is shown in Table 199. Note that the Industrial type is most appropriate for all sectors studied in this analysis. Table 199: Company Size Classification Structure for China Type

Index Em ployee Industrial Revenue  Asset Em ployee Construction Revenue  Asset Employee Wholesale Revenue Employee Retail Revenue Em ployee Transportation Revenue Em ployee Post s ervices Revenue Lodging and Employee Catering s ervices Revenue

Unit pers on m illion RMB million RMB pers on m illion RMB million RMB pers on m illion RMB pers on m illion RMB pers on m illion RMB pers on m illion RMB pers on m illion RMB

Small Les s than 300 Les s than 30 Les s than 40 Les s than 600 Les s than 30 Les s than 40 Les s than 100 Les s than 30 Les s than 100 Les s than 10 Les s than 500 Les s than 30 Les s than 400 Les s than 30 Les s than 400 Les s than 30

Medium 300-2000 30-300 40-40 0 600-3000 30-300 40-40 0 100-200 30-300 100-500 10-150 500-3000 30-300 400-1000 30-300 400-800 30-150

Large More than 2000 More than 300 More than 400 More than 3000 More than 300 More than 400 More than 200 More than 300 More than 500 More than 150 More than 3000 More than 300 More than 1000 More than 300 More than 800 More than 150

Source: National Bureau of Statistics of China

: A small firm has less than 50 laborers, while a medium-size firm has 51-200 Vietnam  laborers. Within the small and medium-size classifications, there are some detailed categories depending on the purpose of research and management. For instance, a firm with less than 10 laborers is called a super small-size firm. Such a regulation is in line with Social Insurance Law.158 VIII.2.2. Product Technical Specifications

Following the identification of products to be targeted for the value chain and feasibility analysis, a detailed technical profile of each product with an accompanying diagram or  photograph was complied and sent to the field teams to help ensure that product data 158

 Information garnered from http://laws.dongnai.gov.vn/1991_to_2000/2000/200004/200004280005_en/lawdocum

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collection in the field focused on products with similar - if not identical - technical specifications. Table 200 below provides the product technical specifications for all ten  products for which product data are being collected. Table 200: Product Technical Specifications Weight Product

Weight

1 Golf gloves

85 - 141

2

Loafer Size

3 Padlock*

Dimension

Unit of measure grams

780

grams

Heel

Width

Insole

EU = 7

2.5

10

30

760

grams

7

7

NA*

Thickness Diameter 290

mg

5 Wooden chair 

6.5

kg

6 Wooden door 

12

kg

7 Milk

0.5

liters

Type (German) Type (French) 8 Milling

Unit of measure

US = 8

Crown cork 4 (metal bottle cap)**

550

55

9 Polo shirt

250 - 270

grams

10 Underwear

80 - 100

grams

Material

Men's medium

Sheepskin

cm

Sheepskin

cm

Brass

mm

tin free steel (tfs)

cm

Pine

cm

Pine

Height

0.24

31.9

6.6

Width

Depth

Height

45

45

75

Width

Depth

Height

80

4

210

Protein

Lactose

Ash

Vitamins

Fat content

3.5%

4.7%

0.8%

B1, B2, C and D

Full

Ash 300 Total 3,174 100% Source: Vinatex, Interview, August 2010

Vietnamese producers are much larger than those of China, probably because a ‗single  producer‘ consists of multiple linked suppliers organized on a CMT (cut, make and trim)  basis. Vietnam faces some challenges to its competitiveness due to a dependence on imported inputs which potentially raises the price of export products. It is estimated that 80 percent to 95 percent of Vietnamese garment production relies on imported material,  primarily from China, Taiwan and Korea. The sector also is transforming rather slowly from CMT to ODM (original design manufacturing). To move to a more domestically integrated value chain, investment and technical know-how still are required. The sector also faces a shortage of skilled and semi-skilled labor, which limits the apparel sector to low value-added production. Nevertheless Vietnam constitutes one of the world‘s largest apparel producers. VIII.5.

Feasibility Analysis of Boxer Briefs Production in Ethiopia VIII.5.1. Production Assumptions Based on the VCA

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Currently, Ethiopia does not produce boxer briefs, and they are importing them from a number of countries including China. In this context, the objective of the feasibility study is to determine the probable economic and financial profitability by simulating the  production of boxer briefs in Ethiopia given the current level of labor productivity and  production costs associated with polo shirts. As input material for the production of  boxer briefs is currently not available in Ethiopia, the VCA uses actual cost of input material from China. The cost of transporting the material from Guangzhou, China to Addis Ababa, via Djibouti Port if factored into the calculus based on the prevailing transport costs (shipping, trucking, handling, customs clearance, freight forwarding services and any other charges associated with importing fabric and other inputs required for the production of boxer briefs). A number of assumptions were made in order to develop a profile of a hypothetical factory to simulate the production of boxer briefs in Ethiopia. The following provides a  brief description of how figures were adjusted. Size of operation  :

The size of the operation was adjusted according to the labor  productivity ratio between a factory producing polo shirts in China and Ethiopia. Specifically, the average labor productivity in China was approximately 25 shirts/person/day, as opposed to 11 shirts/person/day in Ethiopia. Given the differential  production of 56 percent, the size of the operation was scaled down accordingly. : The total number of employees was kept the same as the factory Nu mber of employees  in China, but the number of skilled, unskilled and casual employees was adjusted according to the proportion of these categories of workers in the representative factory in Ethiopia. L abor tu rn over and absenteeism r ate  : The same turnover and absenteeism rate as the

representative factory in Ethiopia was used. Shi f ts, aver age capacity uti li zation and outpu t  : Figures from the representative factory

in Ethiopia were used, starting at 65 percent utilization for one shift operation. Output and revenue figures were adjusted to reflect the revised operations figure for the hypothetical factory. : The F/S assumes that the same equipment currently used M ajor production equipment   by the boxer brief factory in China is available to the manufacturer in Ethiopia at a price to include import costs and local distribution of 15 percent of FOB China.

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: The F/S assumes that this is an import substitution industry at least M arkets and pr ice  over the period of the study, with the future prospect of exports only if cost/productivity changes occur. Factory gate, wholesale and FOB prices used for the F/S reflect those for the factory in China, adjusted for transport, handing and distribution cost to the Ethiopian market (Addis Ababa). : These figures were revised to reflect the Average spoi lage, r eject, waste and loss r ates  figures in the representative factory in Ethiopia. Raw materi al i nput  : The amount and cost of raw material input, including packing and

 packaging material, was adjusted to reflect the revised number of boxer briefs produced  per day at the hypothetical factory. The cost of transport and handling was incorporated into the total cost. : Total annual salary and wages were adjusted to reflect the revised Salary and wages  distribution of skilled and unskilled workers, and used the current wage rates for these skill levels in Ethiopia. : The cost of electricity was adjusted to reflect the revised number of boxer Electricity   briefs produced per day multiplied by the actual unit cost of electricity in Ethiopia today.  percentage of time off the grid per month is the same figure as the representative factory in Ethiopia. : The cost of water and fuel was adjusted to reflect the revised number of Water and fu el   boxer briefs produced per day multiplied by the actual unit cost of water in Ethiopia today. Admi ni str ative over head  : The cost of administrative overhead costs was adjusted to

reflect the revised number of boxer briefs produced per day. L icense and certi fication f ees, taxes, VAT  : These fees were adjusted to reflect payment

rates made by the representative firm in Ethiopia, and adjusted to reflect the revised units of boxer briefs produced on a daily basis. : The cost of freight from Guangzhou, China to Addis Ababa, F reight and handlin g  Ethiopia via Djibouti port was calculated based on actual cost of shipping a 20-foot container of fabric (Table 209 below).

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Table 209: Freight Cost from Guangzhou to Addis Ababa via Djibouti Port (2010)

Guangzhou to Djibouti Shipping/handling Djibouti port to Addis Total freight cost (20') Weight/container (tons) Freight cost ($/ton) Freight cost (ETB/ton)

$ $ $

1,880 2,012 3,892 10 $ 389.20 5,254

Global Development Solutions, LLC 

The cost of transporting raw material input from factory gate-to-factory gate (China to Ethiopia) is based on US$389.20/ton which includes all handling charges. In this context, all imported raw material (including packing and packaging material) was converted into kilograms and then multiplied by the freight and handling charges.

Can the Cost of Transporting Input Material to Ethiopia be Reduced?

As cost of freight from Guangzhou to Addis Ababa indicates, nearly 52 percent of the freight cost is incurred between Djibouti Port and Addis Ababa. Of this amount, 49 percent is transport cost. Further breakdown of this cost indicates that up to 25 percent of the transport cost is accounted for  by fuel. Ethiopia imports petroleum fuels as it has no local production. At present, all petrol (NGF X Sudan and NGR E5) is imported from the Sudan and other products are i mported through Djibouti. Kerosene is currently the major petroleum fuel in quantity imported for domestic cooking  purpose. In 2009, imported kerosene surpassed 300,000 tons. Automotive diesel oil (ADO) is the next most significant following kerosene. Can taxes on fuels be reduced to help enhance competitiveness? There are three types of taxes on fuels for transportation: excise tax, value added tax (VAT) and municipality tax. However, there is no excise tax on ADO and no VAT on jet fuel. There also is a road-fund charge on fuels used for transportation. The stabilization fund charged per liter of fuel fluctuates based on the import price of fuel and is meant to collect funds that would serve as a buffer against frequent price fluctuations. For November 2010, the stabilization fund was rather negative except for light and heavy fuel oils (see table). Breakdown of Tax on Imported Fuels (November, 2010) Description CIF value Excise tax VAT Municipality tax Road fund Sta bil iza tion f und Sum

Unit US$/liter 30% 15% US$/liter US$/liter US$/l ite r US$/liter

NGR X Sudan NGR E5   0.59   0.59   0.18 0.18   0.12 0.12   0.001 0.001   0.006 0.006   (0.00 01)   (0.0001)   0.89   0.89

           

Kerosene 0.65 (0.0001) 0.65

ADO 0.63   0.09 0.001 0.005   (0.0003)   0.73  

Light fuel oil   0.58   0.09   0.0001   0.67

Heavy fuel oil 0.56 0.08   0.0002   0.65    

Jet fuel 0.65 0.19 (0.0001) 0.84

Source: Global Development Solutions, LLC

Given these taxes, if fuel taxes were reduced for importing strategic input material, the possibility of

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VIII.5.2. Value Chains Analysis for Boxer Briefs

In order to assess the potential competitiveness of producing boxer briefs in Ethiopia, a value chain analysis for the production of boxer briefs was first conducted in both China and Vietnam. The average cost of producing boxer briefs in China ranged from US$1.05 to US$1.19 per piece at a labor productivity level between 28 and 40 pieces/person/day. As with polo shirts, manufacturers in Vietnam were generally focused on CMT rather than establishing their own supply chain for accessing all of the necessary input material. The cost of assembling boxer briefs in Vietnam ranged between US$0.11 and U$0.28 per  piece with a labor productivity ranging from 5.8 to 22.9/pieces/person/day. Based on the assumptions and methodologies presented above, the estimated cost of  producing boxer briefs in Ethiopia of average quality using imported fabric and input materials is approximately US$1.02 per piece. As with the production of polo shirts, the low cost of labor in Ethiopia provides the competitive advantage to compensate for the higher cost of imported raw material. As the value chain diagram below indicates, the total labor portion of the Ethiopian value chain for boxer briefs is only 8.5 percent as compared to 16.6 percent in China. Here again, however, the major challenge for manufacturers in Ethiopia is whether they are able to produce a quality product with consistent stitching and finishing, while at the same time control in-line production losses, waste and reject rates (Table 210). Table 210: Benchmarking Data for the Production of Boxer Briefs in Ethiopia Benchmarking Data Sheet: Boxer Briefs 1.0 FACTORY 1.1 Capacity utilization 1.2 Installed capacity (piece/day) 1.3 Labor absenteeism rate (%) 1.4 Average salary/wage/month 1.5 Skilled 1.6 Unskilled 1.7 Days of operation/month 1.8 Average age of major equipment 2.0 Exported Output (finished primary product) 2.1 Direct Export without consolidator/broker  2.2 Indirect Export Through Local Consolidator  2.3 Indirect Export Through Overseas Consolidator 3.0 Domestically Sold Output (finished primary product) 3.1 Direct Sales to Wholesalers/Retailers without consolidator  3.2 Direct Sales Through Own Outlets/Shops/Showrooms 3.3 Indirect Sales Through Local Consolidator/Trader  4.0 Unit production cost ($/piece)

China

Viet Nam

90% 1,500 - 4,000 1% - 2%

70% - 90% 6,000 - 15,000 0% - 2%

$265 - $340 $177 - $222 26 - 30 2-6

$114 - $130 $78 - $93 25 - 26 2.5 - 10

0% 0% - 100% 0%

100% 0% 0%

0% 0% - 100% 0% $1.05 - $1.19

0% 0% 0% $0.11 - $0.28

Global Development Solutions, LLC 

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Ethiopia Simulated 

65% 1,056 11% $ $

185 46 25 6.0

Competitive  labor costs 

100% 0% 0%

$

0% 0% 0% 1.02

Competitive production  costs using imported  input material 

Competitive Africa: The Value Chain and Feasibility Analysis Module  –  Draft 4  Not for Circulation

Figure 65: Simulated Value Chain Diagram for Boxer Briefs in Ethiopia Boxer briefs, Mens Unit production cost

Simul ated Cost 

$

Addis Ababa

Cutting/Layering 0.4%

Raw material 43.5%

Fabric

Ethiopia

1.02

100.0%

Raw material inputs

 Raw material   Labor 

$ $

0.87  0.09

85.2 8.5

 Packing Mat 

$

0.05

5.3

Finishing 2.1%

Sewing/Assembly 46.4%

89.8%

Labor  Electricity R&M

9.2% 0.1% 0.9%

Admin/OH 1.5%

Packing/Loading 6.0%

Packing material

88.4%

Labor  R&M Other 

11.3% 0.2% 0.0%

Global Development Solutions, LLC 

Figure 66: Value Chain Diagram for Boxer Briefs in China163 Boxer briefs, Mens Unit production cost

Guangdong China $ 1.05 Cutting/Layering 3.1%

Raw material 39.3%

Fabric  Raw material   Labor   Packing material

100% $ 0.81 77.1% $ 0.17  16.6% $ 0.05 5.1%

Finishing 1.8%

Sewing/Assembly 44.7%

Raw material inputs Labor  Electricity R&M

84.6% 14.5% 0.5% 0.2%

Admin/OH 3.4%

Packing/Loading 7.7%

Packing material Labor  R&M Other 

66.1% 32.3% 1.4% 0.2%

Global Development Solutions, LLC 

163

 Value chain diagram reflects actual data from export oriented best practice firm.

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Figure 67: Value Chain Diagram for Boxer Briefs in Vietnam164 Polo Shirt Value Chain: Unit production cost

Raw material 0.0%  Labor   Electricity  Packing material dmin OH 

Hai Duong City $ 0.28

Cutting/Layering 7.3% $ 0.22

79.1%

$ 0.01 $ 0.01 $ 0.03

2.7% 2.5% 9.4%

Global Development Solutions, LLC 

Viet Nam

Finishing 18.0%

Sewing/Assembly 31.9%

Labor  Fuel/oil/ water Electricity R&M

94.3% 1.0% 4.3% 0.4%

Packing/Loading 19.1%

Labor  Fuel/oil/ water Electricity Packing material

164

 Ibid

353

Admin/OH 23.8%

78.6% Labor  6.6% Electricity 1.4% Financing charges 13.1% Admin OH

43.3% 0.6% 16.5% 39.6%

Table 211: Benchmarking Data for the Production of Boxer Briefs in Ethiopia (Part 2) Benchmarking Data Sheet: Boxer Briefs 4.1 5.0 5.1 5.2 5.3 6.0 6.1 6.2 7.0 7.1 7.2 8.0 8.1 8.2 8.3 9.0 10.0 11.0 11.1 11.2 11.3 11.4 11.5 11.6 11.7 11.8

VAT Rebate ($/piece)* Avg Selling Price (US$) Factory gate Wholesale FOB price Avg Spoilage & Reject rate: List different types (3) In-factory product rejection Product rejection by client Avg Waste & losses: List different types (% of total ) Production waste - scrap (fabric-to-polo, weight) Losses (theft) Electricity On grid (Cost/kWh) Off grid (Cost/kWh) - self generated % of time off grid/month ater (m

³

China

$0.17 - $0.24

Ethiopia Simulated  $

$1.11 - $1.47 $1.18 - $1.62 $1.25 - $1.77

$0.57 - $0.62

4% - 5% 800 > 500

Capital Investment for Trading/ Services Firms (ZMK million) < 10 150 151 - 300 > 300

Source: Zambia Development Agency

: The China government is challenged in defining sizes of firms. Temporary China  definitions have been used for the past several years, and the government promised to revise the standard in 2010. The definition from the National Bureau of Statistics of China is complex. The definition was published in 2002 jointly by the Ministry of Finance, National Bureau of Statistics of China, State Economic and Trade Commission (no longer exists), and China Planning Commission, which has since split and exists as the State Development and Planning Commission (SDPC) and the National Development and Reform Commission (NDRC). A simplified presentation of the company size

374

classification is shown in Table 221. Note that the Industrial type is most appropriate for all sectors studied in this analysis. Table 221: Company Size Classification Structure for China Type

Index Em ployee Industrial Revenue  Asset Em ployee Construction Revenue  Asset Employee Wholesale Revenue Employee Retail Revenue Em ployee Transportation Revenue Em ployee Post s ervices Revenue Lodging and Employee Catering s ervices Revenue

Unit pers on m illion RMB million RMB pers on m illion RMB million RMB pers on m illion RMB pers on m illion RMB pers on m illion RMB pers on m illion RMB pers on m illion RMB

Small Les s than 300 Les s than 30 Les s than 40 Les s than 600 Les s than 30 Les s than 40 Les s than 100 Les s than 30 Les s than 100 Les s than 10 Les s than 500 Les s than 30 Les s than 400 Les s than 30 Les s than 400 Les s than 30

Medium 300-2000 30-300 40-40 0 600-3000 30-300 40-40 0 100-200 30-300 100-500 10-150 500-3000 30-300 400-1000 30-300 400-800 30-150

Large More than 2000 More than 300 More than 400 More than 3000 More than 300 More than 400 More than 200 More than 300 More than 500 More than 150 More than 3000 More than 300 More than 1000 More than 300 More than 800 More than 150

Source: National Bureau of Statistics of China

: A small firm has less than 50 laborers, while a medium-size firm has 51-200 Vietnam  laborers. Within the small and medium-size classifications, there are some detailed categories depending on the purpose of research and management. For instance, a firm with less than 10 laborers is called a super small-size firm. Such a regulation is in line with Social Insurance Law.171 VIII.10.2.Product Technical Specifications

Following the identification of products to be targeted for the value chain and feasibility analysis, a detailed technical profile of each product with an accompanying diagram or  photograph was complied and sent to the field teams to help ensure that product data collection in the field focused on products with similar - if not identical - technical specifications. Table 222 below provides the product technical specifications for all ten  products for which product data are being collected.

171

 Information garnered from http://laws.dongnai.gov.vn/1991_to_2000/2000/200004/200004280005_en/lawdocum

375

Table 222: Product Technical Specifications Weight

Dimension

Product

Weight

1 Golf gloves

85 - 141

Unit of measure grams

780

grams

Heel

Width

Insole

US = 8

EU = 7

2.5

10

30

760

grams

7

7

2

Loafer Size

3 Padlock*

290

mg

5 Wooden chair 

6.5

kg

6 Wooden door 

12

kg

7 Milk

0.5

liters

Type (German) Type (French) 8 Milling

Unit of measure

Thickness Diameter

Crown cork 4 (metal bottle cap)**

550

55

9 Polo shirt

250 - 270

grams

10 Underwear

80 - 100

grams

Material

NA*

Men's medium

Sheepskin

cm

Sheepskin

cm

Brass

mm

tin free steel (tfs)

cm

Pine

cm

Pine

Height

0.24

31.9

6.6

Width

Depth

Height

45

45

75

Width

Depth

Height

80

4

210

Protein

Lactose

Ash

Vitamins

Fat content

3.5%

4.7%

0.8%

B1, B2, C and D

Full

Ash