NL Expert findings consultation draft 12-6-2015

Eco-innovation in Vietnam
Quick scan assessment on the implementation
of eco-innovation in the country of Vietnam
International experts:
Mr. Simon Tijsma, exp. adv.Northsea Commission and program manager sustainable
innovations, province of Fryslân.
Mr. Marcel Roersma, advisor internal governance, provinceof Fryslân.
Draftversion 11th of June 2015.

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If you want to build a ship, don't drum up people to collect wood and don't assign them tasks and
work, but rather teach them to long for the endless immensity of the sea.
Antoine de Saint-Exupery

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1. Index
1. Index..................................................................................................................................3
2. Introduction.......................................................................................................................4
3. Observations......................................................................................................................5
4. Eco-Innovation ...................................................................................................................7
5. Recommendations............................................................................................................10
Annexes I Working schedule.........................................................................................................13
Annexes II minutes of visits and interviews....................................................................................14
Annexes III scheme of European Funding ......................................................................................21
Annexes IV scheme of North Sea Commission Priorities .................................................................22
AnnexesV example of enforcement..............................................................................................23

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2. Introduction
The United Nations Environment Program has launched a program forEco-innovation.The
project has been taken to Vietnam, as one of 7 countries all over the world.
The Vietnamese Government has affirmed its position in implementing sustainable development
by adopting several strategies. According to the government they still face a lot of challenges
and barriers. Therefore the main objectiveof the Eco-innovationproject in Vietnam is to refine
and successfully adapt UNEP’sapproach in enhancing the capacity in SCP mainstreaming
policies for eco-innovationin Vietnams’ context. An additional goal is to strengthen the ability of
AITCV and selected service providers to effectively contributeto the SCP policies for eco-
innovation measurements in the implementation process. This is implemented within the agri-
foodsector in Vietnam. Torealize the goal of implementing eco-innovationit is of importance
that service providers play an active role to involveall relevant stakeholders in all policy
stages(cycleof policy making). Besides different approaches on the implementing eco-
innovation, this review focuses only on the policy part of the UNEP project.Therefore it is
important to set the boundaries to solely policy making. In this we mean, the full process from
idea to the executing of concrete policy measures. This in addition to the consultation and
involving of beneficiaries and actors of importance.
The operationalisation as set in the project document states: Expected outcome –The UNEP
project on Eco-innovationhas to improve the policy development cooperationbetween the
related ministries, localauthorities, the SME’s and institutes, at the same time to foster
international cooperation and contribution by providing a new approach in the policy making
process.
1. Research methodology
a. Analysis of documents and current policy’s
As a basis of our research we used several written advices given by consultants, especially on the
implementation of SCP and Green Growth in Vietnam. They overviewed the current policies as to
recognise the UNEP description of Eco-innovation in existing policies. In that way we obtained a
state of art of the implementation of Eco-innovation in Vietnam in governmental policy. We used
those reviews also as a basis for the second part of our investigation, the interviews (Annexes II,
minutes of the meetings).
b. Using European and Dutch boundaries for benchmarking
The questionnaires we used in the interviews have been based on many developments on eco-
innovation around Europe(e.g. North Sea Commission) and many theories behind projects the
Province of Fryslân has carried out. In their projects they worked with many players on the
subject of innovation and economic development.
c. Interviews
Finally we used several interviews to obtain information about the way authorities are acting.
Also we tried to find out if the market is involved in the policymaking of the government
concerning the implementing of eco-innovation.
This report starts with an overview of the main observations based on the reviews and
interviews as described above. The observations give the opportunity to make some general
remarks. These remarks in combination with our recommendations are described in the last
paragraph. Before we give an overview of our recommendations we introduce in short the
importance and nature of innovation.

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3. Observations
According to our research weresearched several levels of government. The findings are
described in figure 1. as shown below.
GreenGrowthpolicy Central
Government
Regional/local
Government
Strategic level Eco-innovationis not explicitly
described
On a strategic level every topic
separately described including
stakeholders
Policy description is very generic
and supply driven
Eco-innovationis not explicitly
described
Followerof national policy
Regional and localgovernment suffer
lack of enforcement and controldue
to lack of autonomy and
subordination to the national
government.
Operational level No monitoring involved,so
learning capacity is weak
No monitoring involved,so learning
capacity is weak
No feedbackto the central
government.
“Stick”1 Regulation is focusedon resource
efficiency
Certification is incidentally
implemented and suffers a lackof
trust on the demand site
Central legislation is incorporated in
the regional regulation.
Enforcementis weak due to a lackon
human resources and funding
Penalties are too low to influence
behaviour (See annex V).
Certification is incidentally
implemented and suffers a lackof
trust on the demand site
“Carrot” Incidentally used e.g.
Seed money and temporary price
support and reformof the tax
system to promote sustainable
innovations are in the stakes of
research. Due to lackof money
Incidentally used e.g.
Seed money and temporary price
support and reformof the tax system
to promote sustainable innovations
are in the stakes of research. Due to
lack of money
others Procurement incidentally used as
an instrument to promote green
growth.
Incidental workshops and
communication
No systematically interaction
between stakeholders.
Procurement incidentally used as an
instrument to promote green growth.
Incidental workshops and
communication
No systematically interaction between
stakeholders.
Figure 1. Observations on governmental level on eco-innovation
1 The "carrot and stick" approach (also "carrotor stick approach") is an idiomthatrefers to a policy of offering
a combination of rewards and punishment to inducebehavior.

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Remarks on the observations
1) Why eco-innovation;as stated in the figure there is no general description of eco-innovation
in the different policy document which are reviewed. This is a pity.Because the growth of
labour productivity and innovation are key for economic development. An introduction of
eco-innovationin the different policies makes it possible to bridge the gap between green
policies in the one hand and economic policies in the other hand. It may be a rich source for
rejuvenation of the industrial sector (i.c. SME’s)In the national policies there are a lot of
words spend on the necessity of green growth, involvement of stakeholders, participation of
SME’s, user involvement etc. etc. These factors are all described in a sufficient way on a
national policy level. Howeverit is not described whichkind of strategy is being followed.
2) Broadly speaking a government can choose between twodifferent strategies for stimulating
their country’seconomy2
a) a linear forecasting ; to use the past to extrapolate interesting future markets, challenges
and threats, this is a risky strategy certainly in the somewhat longer term. After all, the
most accurate forecast of all is that things will happen differently than wethink they will.
b) to boost the country earnings-capacity; the sum of its ability to exploit the future
opportunities and overcomefuture threats
From the documents we have reviewed as well as the interviews we had during our stay in
Vietnam, we got a strong impression that the focus is on strategy 1. And that legislation is
focused on achieving more energy and resource efficiency.Wegot the impression, especially
on regional/local level that the real challenge is how to increase the production without
harming the environment even more.
3) Implementation is poor. The legislation is focussed on energy and resource –efficiency.
4) There is a little understanding by the government of the importance of (eco-)innovationand
the content of innovation processes.
5) There’s a little understanding of the importance/position of the SME’s in the economic
system. In one of the reviews3 contains a lot of statistics about SME’s in Vietnam. However,
this is not incorporated in the policy documents. There is, compared forinstance with the
Netherlands very little knowledge transfer between the private sector and the public sector.
These are different worlds with a recruiting system that is also separated. There are (hardly
any) no people employed in the government sector with experience in the private sector (i.c.
SME’s) and the other way around.
6) The SME’s are approached as a homogeneous group. No distinguishment is made between
different types of SME’s. Export oriented or only providing forthe home market, the position
in the SME in the product life cycle(question mark, wild cat, cash cow or dog (Boston
Consultancy Group- BCG-matrix)).
7) Policy ongreen growthis generic and focussed on the supply side of the market. No choiceis
made forparticular sectors. Also the topic of the need of cross sectoral (which is high on the
agenda of the EU for instance) is not addressed.
8) Public procurement is not mentioned as a possibility/instrument forthe government to
raise the innovation level.
2 WetenschappelijkeRaad voor Regeringsbeleid, “naar een lerende economie”, 2014.
www.wrr.nl/publicaties/publicatie/article/naar-een-lerende-economie-1, English download available.
3 dr. Nguyen Manh Hai, “MainstreamingSCP policies For Eco-Innovation Report”, CIEM, 2015

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9) Enterprises that are exporting goods and services have to meet the (legal) requirements of
the importing countries. These requirements mostly exceed regulation on ownhome
market. Wecan learn from experiences. Mostly they are part of an international chain and in
line withthe international trend, those chains are getting long and more fragmented with
countries becoming more and more dependent on one another and more volatile. We only
visited a few enterprises (3)from totally differentsectors, so we can’t derive any
conclusions from that. The VCCI can play an important role in the eco-innovation, because
they have a legal job and this can be useful in the eco-innovation process.
10) As weexperienced in our interviews most policy making is being realized via a Top-down
approach. Where the central government implements policy on strategic level the regional
and locallevel has to follow within those boundaries.
11) Entrepreneurs are willing to change to achieve
eco-innovation,but are not getting the level
playing field they need.
12) The research institutes and universities are in
general very acquainted with eco-innovation,
but they use a lot of desk research. We had the
impression that they don’t visit SME’s.
13) Consumer organisations are missing in the
actor analysis, so the research does not have an
explicit view on the actual state they are in in
relation to eco-innovation.
photo 1 Farming at Tue Lien
4. Eco-Innovation
Before we go on with our recommendations we like to describe why the explicit description of
(eco-)innovation is desirable.
In the national and international policy papers of the Netherlands as wellof the EU is the
necessity of eco-innovationis motivated by factors like:
a. Eco-innovationis a major driver of economic development
b. Eco-innovationis needed in order to replace the drop of growth in labour productivity
c. Eco-innovationis needed because we facehuge environmental challenges (resources,
climate, food & water)
d. Eco-innovationis needed because there is a shift from the supply side to the demand
side (much more user-oriented)
In the economic literature innovation processes are described as a process with a lot of
uncertainty and risks. (See figure 1, foran illustration of the uncertainty/risk in the different
stages of product development). Hence private investments are not that high (i.c.under-
investment) which is desirable froma societal points of view.This means that it is desirable that
that government interferes with the economic process in order to achieve a higher level of
economic development/welfare. Because in the case of eco-innovationit is even more required.
In this case also environmental issues are involved.

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increasing increasing
certainty certainty
Research Development Demonstration
technology development market development
(futuresupply) (future demand)
figure 2. Stages and uncertainty during the innovation process, after Krozer and Tijsma, 2003
In order to interfere as a government in (eco-) innovation processes you need to understand
innovation processes thoroughly. On innovation there is a vast amount of literature e.g.:
1. M. Porter whofocusses on cluster development
2. R. Florida who’s on the importance of creativity in order to gain economic development and
stresses the importance of tolerance (an open mind forexperiments)
3. Evolutionary economists, who stress on the importance of the introduction of niches as a
source for path-breaking eco-innovation.These eco-innovationsoften fail because they have
to compete within the selection environments embedded in incumbent’s socio-technical
regimes. To give an example we have added figure 3. togive an impression how you can
boost eco-innovationpolicy making (e.g. economic,cultural) fromdifferent perspectives
(shielding, nurturing and empowering) and from a different point of view.This example is
focused on the introduction of sustainable energy in the Netherlands.

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Figure 3. Protection is multi-dimensional, R. Raven, Enpath seminar on change and stability in Energy
Systems, Helsinki 2010
And of course there are a lot more approaches and models to promote eco-innovation. All they
insist on is the constant pressure to adapt innovation policy to be as effectiveand efficientas
possible. In figure 2 an example is shown how policy makers are evolving in their way to lookat
innovation policies:
Figure 4. Evolution on Innovation after Chesbrough, Forrester and Von Hippel
From this huge amount of literature a few common recommendations can be derived which are
also applicable in Vietnam. At this moment the state of art in Vietnam is much related to the
Closed

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5. Recommendations
General recommendations
We like to address certain points on the basis of interviews, reviews and own experiences. The
followingrecommendations can be of importance forthe eco-innovationpolicy in Vietnam.
First of all for promoting eco-innovationyouhave torethink-government. You can’t achieve eco-
innovation by law.On the contrary. Responsiveness of the government has to be on all levels in
an so called “sine qua non” condition. Responsiveness of the government means the ability to
adapt rapidly and effectively tonew and rapidly changing circumstances. This means the
government on all levels need to have an adaptive capacity and a pro-activeattitude.
Second, in order to increase responsiveness youhave to promote knowledge circulation. Not
only meaning putting the generation of new knowledge on the top of the agenda, but also, and
this may be of much more importance, make more use of existing knowledge (see e.g. M.
Polayani,The TacitDimension 1967).
Furthermore in economic policy a shift is needed to a lower more decentralized level. It is often
much easier to communicate at a regional level with stake-holders, as well to move things in the
right direction and to stay at top of new developments.
In order to promote eco-innovationit is necessary as is shown in figure 3 that all the relevant
stakeholders (government, R&D institutions, private sector (i.c.SME’s ) and end-user; the so-
called quadruple helix) are involved.For the central government it is essential to focusmore on
improving the eco-innovationsystem as a whole. We strongly recommend to review the
economic policy because innovation will probably play an important part of it and this creates
the opportunity to close gaps between environmental policy and economic policy in order to
achieve synergetic effects.
Also the governance structure has to be “intelligent” in the way that it can adapt very easily and
quickly and learns fast, but is also not only by looking at the short term macro-economic
variables as GDP-growth,but also by considering the long term effectson the country.
Recommendations on specific area’s
The recommendations abovewere more in general. To be a little more specific.There has to be
an empowerment change in the instrument mix on eco-innovation.We have to make a shift from
instruments focusedon the supply side of the economy to instruments focused on the demand
side of the economy. Much attention has to be paid on:
a) Creating a level playing field;
b) The need of bricolage/tinkering/trial and error
c) Create optionality (failfast, be foolish; a lot of efforts with an affordable loss);
d) Promote bottom-up processes (e.g. living labs)
e) Empowerconsumers.
Ad a) Creating level a playing field is a conceptabout fairness, not each player (i.c.actor) on
the market has an equal chance to succeed. It is level when the external interference doesn’t
affectthe ability of the actors to compete fairly (forexample taxing incumbent products to
reflectexternal costs, see figure 2).
Ad b) Meaning an open mind forexperiments (bricolage French for“do-it-yourself).The
construction or creation of a product or projectfrom a diverse range of things that happens
to be available. It emphasizes on doing things and learn fromit.

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Ad c) This concept is derived from venture capitalists meaning all youcan lose financially in
venture capital is what you invest (= downside) and whatyou upside can be more than
1000 times of what youinvested (see figure 5).
Figure 5. Optionality (N. Taleb, Antifragile, how to gain from disorder, 2013)
Ad d) In the policy making process wedistinguish Top-downand Bottom-up. Top down is a
clearcut system of command and control(this is the actual situation in Vietnam). The
Bottom-up approach is working in a cooperativeway between central government, local
government and beneficiaries(Pro- and con- actors).The process is structured via the
importance of goal achievement linked to the beneficiaries most likely to gain from the
policy.The main objectiveis in this method that co-creating delivers shared responsibility
between the actors forthe outcomeand more support for the final result.
The concept of the living lab means an user central, open innovation ecosystem in a
territorial context(island, neighbourhood, region etc. etc.) integrating research and
innovation processes within a private-public partnership. The concept is on a systematic
user co-creationapproach in real lifeuse cases.
Ad e) In a sound economic system youneed the so called counter failing power, so youhave
to enforcethe power of all the actors in the process in order to achieve prosperous results.
Also we recommend to put more focuson the implementation and less on policy documents (10-
90 versus 90-10; meaning with an effortof 10% you achieve a result of 90%).
Finally we advise to research on the monitoring of the international policies. For example in all
the documents of the EU the importance of innovation is stressed. And it is almost impossible to
get funding from the EU if the application does not fit in the innovation policy of the EU
In annexes 3 and 4 sheets are added concerning the total EU funding scheme and an example
how the EU policy is translated in the EU-Interreg North Sea program 2020.
Applicable recommendation for the near future
In the report we described a different w to approach eco-innovation.An approach based on
present research assessment of eco-innovation(co-creation,bottom-up, demand driven etc.
etc.).A kind of paradigm shift is needed in the way we approach eco-innovation.It is needed tot
increate optionality in order to find solutions whichare reliant, effectiveand efficient.
To introduce the way of thinking in the first place we need to invest in capacity building. In this
capacity building we need to address at least three different topics.
1. Content and technologies (technology,economics design and social cultural aspects)
2. Processes in order to make a shift from top-downto bottom –up you need to design other
decision processes. And as government (national and region/local) you become a facilitator

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instead of a regulator. Use benchmarking to gain methods of other (European) processes
(e.g. Leader approach : "Liaison Entre Actions de Développement de l'ÉconomieRurale").
3. Competences ; in order to deal withthe challenges of the future in the field of eco-designing
civilservants need other competences. You have to train them.
In general you have to develop new courses on differenttopics. On innovation of the decision
making processes and on competences. And youcan organise internationalstudy-tourson
these three topics. Other recommendations especially applies to this project includes the
introductionofjob-rotation.Itis necessary to reduce the walls between the different
disciplines (R&D, government, and SME’s) and we suggest that the reviewers not only stick to
desk-research but also visitSME’s,and get SME’s actively involved inthe process.
During the process of this projectyou can organiseworkshopswhereyouinvite regional and
local civilservants to participate in order to learn form each other. The experiences of these
workshops can be shared with civilservants on a national level.
Finally we advise strongly to checkour findings and expand the knowledge about the readiness
of the SME’s, the consumer organisations and R&D. Especially these actors have to be more
involvedin the project so conclusions become more reliant.

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Annexes I Working schedule
Date Time Organization Objectives
2-jun
8.30 - 12.00 AITCV
14.00 -
16.00
Ms. Trần Thu Hằng - Industrial Policy and Strategy
Institute - Ministry of Industrial and Trade
To understand the review results
of existing policies conducive to
eco-innovation in Vietnam (incl.
strategies and action plans related
to Sustainable Development and
Green Growth)
3-jun
8.30 - 12.00 Tue Vien Farm
To have an understanding of the
current status of agricultural
farming in eco - innovation
14.00 -
15.30
Institute of Environmental Science and Technology
- HUST
15.30 -
17.00
Mr. Kim Văn Chỉnh - Institute of Policy and Strategy
for Agriculture and Rural Development
Ministry of Agriculture and Rural Development
Interviewing on the topic of eco-
innovation and government
involvement
4-jun
Working at AITCV
13:30-17:00
Mr. Bùi Như Ý - Vice Director - Agriculture and
Rural Development Department of Vinh Phuc
Province
involvement
5-jun
Seminar at AITCV
Topic: Eco-innovation in the
regional context
14.00 -
16.00
Local Consultant - Mr. Trần Huy Hoàn - Divisionof
Environmental and Trade - Research Institute for
Trade, Ministry of Industry and Trade
involvement
7-jun
Leaving for Da Nang
Free
9 jun
8:00-8:45
Department of Natural Resources and Environment
of Da Nang City
involvement
9:00-10:30
Mr. Nguyễn Đình Huỳnh - General Director of Da
Nang Chemical Industries Joint Stock Company
involvement
10:45 -
11:30
VVCI Đà nẵng
involvement
13:30-14:30 Department of Industry and Trade of Danang city
involvement
14:30-15:30
Department of Science and Technology of Da Nang
city,
involvement
10-
jun
10:30 -
12:00
Meeting with P.U F.O.N.E (lô C1-12, KCN DVTS Đà
Nẵng, Thọ Quang, Sơn Trà, Đà Nẵng)
involvement
After Leaving for Hanoi
Working for AITCV
11-
jun
Morning Working at AITCV - Prepare the Final report
Local consultant - Mr. Hải
involvement
12-
jun
Afternoon Present the report

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Annexes II minutes of visits and interviews
1. Minutes meeting with mrs. Hang, local consultant, ministry of Agriculture
and Regional Development
The department of agriculture has many different types of policy documents. They all address to
the SCP. The main question on eco-innovationcan’t be answered because the translation of Eco-
innovation has not been made. The goal achievement in the differentpolicies and regulation all
differ in approach but not one is addressing or explaning how Sustainable development is
addressing Eco-innovation.In the review of miss Hang the question is whether there are gaps or
barriers. It became clear that there is a gradation in strategic en operational policy on SCP. The
strategy on Green Growth does’t have concretemeasures to realise, but there is law that
Vietnam uses to give the opportunity to spend seed money or to tax negative behaviour. Also
there is the possibility to reduce tax as an incentive for changing behaviour in SME’s. During the
meeting it did nog became clear if the policy investigation and recapitalization linked all the
main objectivesto the concretemeasurements the government uses to achieve their goals on
SCP. It was clear that Eco-innovationwasnog named explicit or had even been addressed in the
existing policies or in the policies that are in the phase of being made.
2. Tue Vien organic farm, mrs. Chị Nguyễn Thị Phương Liên, CEO.
The idealistic idea about organic farming goes back 45 years. Ms. Lien tries to maintain
sustainable farming by growing own seeds, farming withonly natural products and no
pesticides. Also the fermentations are only on natural basis. No animals have been harmed in the
process, this she sees as organic farming.
The wish of mrs. Lien is to get all the non-organic produce labelled, and make the organic
produce the national standard (highest goal). The way to succeed that highest goal is touse the
government. Governmental influence must be used to stop the Genetic companies overhauling
the mainstream farms in using pesticides, chemical fermentation and even GMO.There are no
sub goals there, but to maintain the organic farming as an sole and own sustainable chain.
There is a risk, there are already organic shops there, by the claim that they sell organic
produce, but they don’t. Also the farmers say they grow organic but still use mainstreem waysof
farming.
A solutions she offersis to get the area outside Ha Noi to grow in tourism, mainly on the outside
of the Red River and let them make depended on the organic produce. That we demand grows,
then produce has to grow another farmers are more willingly to turn. Is this a SMART solution,
the government is not yet ready fortransforming. Thus the spatial planning department is nog
willingly to give money forsuch projects(major money). Not realistic, and not acceptable by
government and public.
3. Minutes visit University of Science technology
Mainstreaming SCP policy for ecoinnovation is difficult.Consultants: no role, but can supply
technologies in SME’s. The stakeholders scan; how can companies supply to the policy?
Science provides linked to air pollution, no broader. Lotof regulation by the government, a lot
but not forceful.Involvementof enterprises are important. The lackof planning is crucialto take
care of. Lot of finances are missing, therefore there is not sufficient funding for measuring the
pollution. This in spite of the many measuring point available. Vietnam has to learn from other
countries in decision making processes, for instance America. Invite new not strange. And at last
try to make someone an ownerof the problem.

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6. Minutes Mr. Y, vice director, province of Vin Phuc, dept. Agriculture and
Regional Development Agriculture and Regional Development, Mr. Chin,
Institute of policy and strategy’s
The current state is investigated by investigating four policy assessments. First the policy on
agriculture and Trade, by consultant mrs. Hang. The challenges in the policy translations mainly
pointed out the problems with transformation of higher goals to concrete measures. In addition
also the relations between the goals and the measures for following the goal achievement is
stated to be an objective of risk. Vin phuc implements national government policy itselfs. Based
on the situation of Vin Phuc, issue specific policy.
What instrument they use. Support policy for seed and for environmental protection.
Biogas in livestock, household much biogas, support via households it is cheaper.
Only for cooking. Why only cooking. Technologies is not sufficient to bring it to the enterprises.
Not yet for vehicles. The reason is that not enough tot support cars. But use also wind or solar
energy. SMV supports the program for biogas. Does the region have in policy ‘fossil free’
Not yet. Back casting, policy is het present?
Vietnam has a roadmap, in the central government. But not in the regional government. For
energy it depends on the capacity in the province. Not every province can write a roadmap. In
Vin Phuc, they integrate environment issue in de strategic issue in the livestock policy.
They use support policy to the implement the national strategies.
Vin Phuc uses the same approach on lifestock, to get greener and more sustainable, 4 groups.
1. The seed;
2. support vaccine;
3. training programs;
4. promotion to get out of this area.
Scope is narrow, population high, land limited, density 900/km only in the city,
The goal is to sell more agricultural goods, for domestic use. They want to grow, so how do they
want to grow. Biodiversity is not a topic at the regional government, and also is missing at the
central government. Living conditions sustainable consumptions have not been addressed.
Regional level heavily relies on technique. Can Vietnam develop itself the technique of has it to
be imported. Domestic and import, payment, enterprise investment.
Vietnam want to promote the PPP. Only central level.
Conclusion: promote green ecology, via technology, must via invest, most tech abroad, nog
knowledge in own province. Consumer behaviour and biodiversity is not an item.
7. Minute meeting with Mr. Hoan – MoIT
Mr. Hoan did make the assessment of the Vietnamese policy.
Conclusions of the meeting.
1. Policy onEcoInnovation is not main objectiveand exclusively available.
2. SCP Policy contains EcoInnovation, but not on a strategic and reasonable level. There
are no linear arguments that collides SCP to EcoInnovation
3. There is no goal setting with regional aspects or local aspects obliged. Strategies are
national obtained and translated only to implement on regional and local level. Decentral
scope is missing.
4. Goal achievement in SCP and therefore also Eco-Innovationis monitored poorly,many
indicators ar not certain for followingthe right goal achievement. Also there are many
measures or instruments that aren’t being monitored forthe positive input.
5. The entire chain is not brought together. There is in every actor an autonomic approach.
Therefore collaborating goal achievement is not being set. A lot of opportunities are
being missed that way.
6. Enterprises are missing technical an consumers knowledge in their ownchain.

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7. Government is supportive to only one actor at the time not to a cooperation of actor that
are chain involved.
8. Unified definitions on EcoInnovationare being missed and therefore the mind-set is to
different between the chain depended actors and goal achievement on Eco-Innovationin
not maximized.
8. Minutes of the meeting with Mr. Dinh Ahn, Vice Director of department
of Natural Resources and Environment, Da Nang city.
In short the town of Da Nang succeeds in making policy,translating it into main objectivesand
linking the objectives to concreteindicators. They have a central point for civilians and
companies to get information or ask questions. Even the Mayor has distributed his E-mail to be
transparent and applicable forquestions. The authorities of Da Nang have set Eco-innovative
goals forthemselves. Da Nang must be a Green City before 2020. The policy even contains
objectivesto realize that goal. The way of policy making includes backcasting and
forwardcasting. The objectivescontain short and longterm goals, for instance there is now a
project starting finalizing the goals for 2050.
The short term goals are separated in 3 objectivesof sub-goals:
1. 2011-2013; main area’s roll out models
2. 2011 greening motor for industry zones
3. Last stage; start replicate models to other area’s, but funding is short
The city of Da Nang don’t want to become like Hanoi.
Da Nang show benefits of this project tot stakeholders to get them involved in the projectto get
the city greener. Example is the delegation of the roll of managing. Controlling stays the central
government. But the works on the lakes were delegated to the communities. Da Nang delegate
the works to the enterprise. Monitoring is delegated to the districts. Da Nang has funding to
clean the lakes, via taxes. Da Nang makes policy and regulation to enforce.
Da Nang City has many missions, first they try to change the behaviour and give them training,
thenr they try to introduce cleaner transportation, so they found a partner in Germany to deliver
a cleaner bus.
Conclusion: Policy,regulation and taxes are all Da Nang government. But nothing else.
1. They don’t have discussion with firms about ecoinnovation, sometimes within the
company’s but that’s not much.
2. Da Nang is short of funding innovation.
3. There is no room for the Governmental as an roll as advisor to do things differently.
a. But there’s a special unit, a consultation centre, they advise de enterprises. Also
for industries, for example environmental issues.
b. Do enterprises don’t have to go to all departments for a question. There is a
central point forcivilians, also the companies can drop their questions there.
Then from out that department the question is being taken care of.
9. Minute meeting with mr. Huynh, chairman and CEO, mr. Tuan, deputy
general manager, Chemical Industries Company, Da Nang.
The enterprise is producing chemical fertilizer forthe Vietnamese market, withis small amount
of export.
Strategy, increase part of the export. How to realize? Is it easy to meet the environmental
requirement of other countries. Company is chemical,before it belonged togovernment, est.
1975. Just after de joining N and S. 37% is government chair, rest is private. Chemical products,
sensitives environmental problems. The forceon the chemical companies is growing under
pressure of the citizens etc.

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Mainly policy with contoland check.Every year checkon criteria. Government just require and
collectmoney(a lot).They do not help, just a convergencesometimes. Government makes policy
and law, then just punishes, they do not discuss and innovate.
The environmental protection cost money to the company, it is ok to set the goal on
environmental improvement is good, but the way the government is achieving is not good. The
companies wants to get involved,they want to get more competitivein international grow. An
example is the Dutch eco-innovationproject in new energy from salt-sweet water or
membranes. Vietnam have guidelines UNEP forcompanies. Only in the food processing chains.
The CCS is using the food processing project to out roll it broader. But the company’s aren’t
aware.
Conclusions:
 Policy is good, but implementation is only permit, checking and penalizing. There is a
common interest about eco-innovation, but the government and the companies don’t find
eight other because the government stays in its classic role.
 Answer: differ the way you act. But you inform first, then you act, so the people can
understand the main goals of environmental protection. Not only penalize. When
environment costs a lot of money is costs the enterprise its competitiveposition on local and
international market.
 The government has a responsibility to help the company’s to get innovated.
10. Minute meeting with mr. Cuong, director VCCI, mr. Quang, deputy
director VCCI and mrs. Phuc, deputy manager SME promotion centre.
Eco-innovationforVCCI means workingwith SME’s to increase business revenue and also
protecting environment and reducing air-pollution and water-waste.The main role of the VCCI
is to support their members to follow the policy that is set by the authorities. They focuson
entrepreneurs. The VCCI helps them to delever the needed environment impact reports
needed(2). That is a requirement when an entrepreneur opens for business. The authorities
have set those requirements. On the question if the requirements is effectivethey say that a long
time ago enterprises haven’t been responsible forthe environment, but lately they seem to
understand the problems and the obligades requirements to meet the new standards. The
policy’s the authorities have set are good, but the interaction between officersand enterprises
isn’t good. The role of the government is mainly to check,penalize and collectmoney.
As an advice to the government how to improve is important to know that SME’s do understand
their responsibilities. So the VCCI hope they answer to a more improved, straightened way to
implement strategy’s therefore they have to:
1. First policy has to be transparent to all actors.
2. Officersgovernment have to be transparent and kind
3. Reduce, several policy to change technologies
4. New tech, and advance tech would change.
How do the SME’s comeby implementing, what should the government do?
1. In Da Nang they introduce the info.To the SME.Is there more info needed? Yes, but the
govern and SME’s have little funding.
2. Also try to import tech and introduce SME to that.
3. Actor withUniversities and institutes for research
How does the cooperationgoes between VCCI, research and government?
1. Its the role of the VCCI to connect the actors. Yes they use round table. VCCI collects en
offersit to the government.
2. Does VCCI worknot only top-down(whenpolicy is developed) but also bottom up?
a. Is the government willing tochange then? Yes, forexample, the VCCI is meeting
the prime minister, every month, every 3 months a written report. Recent 25% to
22%, it was accepted. So there is some influence.
3. Concerning sustainability there is an institute that take care of this at the VCCI.

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a. Dit they advise on this topic as well?Yes give feedbackon the evironment law
and policy?
b. The research is obliged in the written report, there has to be a heavily based
recommendation.
4. Voluntairy Partnership agreement between Vietnam and Europe. Between SME’s.
5. In Da Nang they also have a program where they facilitate.To reduce the CO2 emission.
Da Nang become the low emission city.Here the government play’s the facilitator.
6. Formal and informal connexions, do they dine together. They have to go to the
government. Not even the central. It only goes by report.
Are there people at the Government that come from SME and understand their problems?
a. Not so many, as an authority youmay not workfor SME’s.
b. Lowerlaw for SME’s, government is implementing.
c. Focus, still on the policy.Survey government through the questionnaire not
personal visit. Policy implementation is the issue, not the policy itself.
d. SME’s have many problems.
11. Minutes meeting with Mr. Phuc, vice director dept. Industry and trade,
Da Nang.
The city of Da nang has a big role, and this department is crucial, taking care of the industries
and trade. They take care about the chemical industry, technical, food processing, energy plant.
First the government let the industry follow the rules, like control. Also they advise how to
follow the policy and regulation, consultation in advancein technology. They advise of the
research dept. they bring to the companies.
Also they study technologies all over the world, disseminate via workshops and meetings. Every
3 months they organise workshops for companies with VCCI(KVK) to bring technology to
introduce them to eight other.
The department does not give direct support to SME’s but help with branding. First consultation
service via an seminar. On the side there is funding there is to support them. Activesupport the
give when a firm is exporting.
There is a promotion policy to trade outside. Export could get privileged in de landuse and also
in consultation.
E-suit; policy.But its not eco-innovation
Innovation in the chain conformdefinition Tijsman is not ready in the most companies, here that
is not possible. We just make enrichment to make sustainable production, to enthusiast the
people. Dothey think about cluster policy quadruple helix? In general weencourage people use
low energy products. Every year funding hoe provide seed funding for the people, to deliver
innovative projectto the city. Da Nang has program to attract talents fortheir knowledge.
Vietnamese and foreign student. Also sending student abroad and then repatriate them to get
them backat the university of ad the officeof Da Nang.
How many people: 1 million in Da Nang, what is their budget 2% of the total GDP of the city.
35.000.000.000, 4 million USD.That is available for total sustainability.
Their still shortage on funding. That’s is the main problem.
1. Wat wouldyou do when funding is not a problem.
a. First invest in research on topic bio engineering.
b. Information technology
c. 5 area’s of research and that is their objective
2. Why is research important.
a. Develop more models, that’s the reason we need more results.
b. Also benchmarking, not only sole international development.
Conclusion: big gap between available means and wishful goals. Policy eco-innovation,they
support, but only in the policy of energy efficiency.

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12. Minutes of the meeting with mr. Ngua, vice director dept. Technology
Management division, mr. Ahn, deputy chief of the science management
division, mrs. Vin Thun, City of Da Nang .
The introductions includes the complete description of the department. There are many
divisions within the department. Mainly the objectivesare science management in the broadest
way.The department also has control and standardize measurements as a task. An finally they
perform the inspections. Research is imbedded in the department fortechnological assistance
and controland inspection formeasurements on the site.
The most important task the department has in relation to the Eco-innovationis to support
enterprises. They say that they support the whole chain in innovation. The role they play is
offering new techniques. The business section is very much in the interest of the authorities, so
they have different actions they take to support. As are tax reducing policy,land policy,
technological innovation policy,giving support fort technicaleducations etc. The SME were
having last year the year of the enterprise. Eventhough this event is spoken of the first time in
this research it is said that all the departments do know this because the people’s committee
unleased this special year. The concrete measures the department uses to support enterprises
are divided by projects formanufacturers and serviceproviders. They mostly use a hotpotto
stimulate. For example to achieve the goal of reducing energy in the chain.
The conclusion is set that the goal setting is directed at the achieving efficiency,not specific
innovation. The department explains that they workin this process together to create a common
sense, also with students with activesupport of the government. In addition, the money that is
spend on science technology is 1 million VND.
13. Minutes meeting with miss Chiu Cheng Tsai, PUFONG company fishing
trade, also member of VCCI
The PUFONGfishing company is an joint venture of Vietnam and Taiwan.
CEO of this company,market is export to Amerika, Taiwan,Malaysia an EU many shrimp and
fish.
Orientation at the international market. They deal with the international criteria as follows.
Safety and foodsafety have to strictly follow.Thesustainability criteria are unknown, they need
explanation. Unilever example is been given, like don’t fish more than the ecosystem produces.
Differencebetween Unilever and the fisheries is that the latter has to use the nature for
providing. But they follow ISOrequirements. They try to become ISO forenvironment. They also
have to follow.
Hat sap- food requirements have to follow set by the government of Vietnam. They are clashing
with the international needed requirements, or not? Some points are the same, some are
difference. There forinstance vitamin in Amerika is more strictly than Vietnam standards.
Checking Vietnam standards are twicea year, international standards are checkedfirst by the
Vietnam government before shipping then again by the government that’s receiving the
shipping.
To meet the international requirements the firm as to invest a lot in technology.They have to
invest in the conditioning system, temp. etc. The surrounding companies are not the same.
Differencein targeting markets. When youtarget European Union of Japanese markets the
requirements are more difficultto follow.Fortargeting the difficultmarket the government does
not help the company. When started there was policy to subsidize the tax forimporting
technology.But at the time they finish the regulation was changes and they didn’t become any
subsidy. How about the science department. Authorities set the requirements, companies just
have to follow.Evenwhen a dutch waste water delegation was assessing there was no follow up.
Is there a growing market possible for the joint venture, yes there is. But can the government
help them? The tax regulation for the fishery is set on 0 forexport. That is positive regulation.
But it is temporary. The other examples are import materials forthe supplychain. The supply is

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kept a long time at the port of import. That increases the costs, but it’s now allowed to. When
they want to decrease the time they have to pay the government. Also there’s an energy auditing
regulation. Company is Vietnamese, the Taiwanese involvement is only in currency.There is nog
exchange of knowledge. The evolving is on basis of Vietnamese technology.
Conclusion: Government has to change its role fromregulator to facilitator.
14. Minutes meeting with mr. Hai, CIEM
The report of mr. Hai has probably mostly similar recommendations that our findings
Government has started developing policy to use eco-innovationat procurement policies.
Government has enforced dialogue, withall stakeholders.
Deregulation is already used in Vietnam on all levels, but only on specific subject.
Consumer association, one. But very weak.
What are the game changers to get the demand. Empowerment of the consumers.
Problem is the system where all Vietnam cannot trust the supply chain, because there is a lot of
fake brands. How can the demand trust the supply? Also the transparency of the government is
important to gain the demand. Because then the enforcing has to be transparent forthe
beneficiary.
Advise to change promote the green investment, the green procurement, strong incentive stick
and carrot,not only penalty’s. Both sides not enough. Also the penalty is so low, even brute
violations are not being met, just a few days of income, no more. And that also on the incentive.
Bat Trang changed fromcoal to gas. It’s good forthe environment. Why did they change,
probably because the penalty was sufficient. A case study can be advised, so see why it is so
effective.

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Annexes III scheme of EuropeanFunding
STRUCTURE FUNDS
EUROPEAN
Programs 2014-2020
THEMATIC PROGRAMS
EFRO
€ 100 mln
POP 3
€ 100 mln
LEADER € 5
Smart Growth
Sustainable
Growth
Inclusive
Growth
HORIZON 2020
€ 71 mld
ESF
€ 0,10 mln
EEF
Fishery fund
€ 60 mln
INTERREG
€ 946 mln
COSME
€ 2,3 mld
GALILEO,
ITER, etc.
Connec ng EU
Facility € 30 mld
LIFE +
€ 3,4 mld
ELENA
€ 730 mln
EEEF
€ 265 mln
Erasmus +
€ 13 mld
Crea ve Europe
€ 1,5 mld
EaSI
€ 815 mln
Health for Growth
€ 450 mlnINTERREG VA
€ 450 mln
INTERREG VB
€ 177 mln
INTERREG V Europe
€ 359 mln

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Annexes IV scheme ofNorthSea CommissionPriorities
Role regional government:
Ac ve - pro-ac v/steering related to:
Mobilising triple-quadruple helix
Building interna onal consor a
Involvement SME’s
Added value NSC:
High
It is our main
financial
instrument

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Annexes V example of enforcement

NL Expert findings consultation draft 12-6-2015

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