Scope of Work

Technical Assistance for Hong Ky

Market Research for Electronic Welding Machines and Go-to-market Strategy for the Indian Market

Background

Improving Private Sector Competitiveness (IPSC) is a U.S. Agency for International Development (USAID) technical assistance project, and the Agency for Enterprise Development (AED) under the Ministry of Planning and Investment (MPI) is the project owner. The project is implemented by Deloitte Consulting LLP (“Deloitte”) and runs from 2020 to 2025.

The purpose of the USAID IPSC Activity is to remove constraints and build the competitiveness of small and growing businesses (SGBs) in Vietnam, including those led by vulnerable populations. With this activity, USAID/Vietnam is supporting Vietnam’s competitiveness: vertically at the policy, market, and firm level; and horizontally by working along the entire spectrum of enterprise growth models, from household businesses transforming into registered firms to small firms on the cusp of scaling up.

IPSC is made up of four interrelated Objectives:

• Objective 1. Building business management capacity of SGBs, including those led by vulnerable populations, particularly women and ethnic minorities.
• Objective 2.  Improving efficiency and productivity by promoting innovation, technology adoption, and sustainable business models.
• Objective 3.  Enhancing business enabling environment for a broad-based inclusive economy.
• Objective 4. Strengthening business-to-business (B2B) and cross-sectoral linkages.

Summary of Activities

IPSC collaborates closely with the Government of Vietnam (GVN) counterparts, including the project owner, AED, under MPI. IPSC and AED develop strategies for sector selection, geographic focus, and SGB engagement, and engage a broad range of market actors across the economy that make up the SGB ecosystem, including SGBs, cooperatives, and household businesses (HBs); business chambers, associations, and business development service providers (BDSPs); GVN Ministries and Agencies, provincial and local administrations; and private sector consultants, training institutions, and financial institutions. Using incentives and cost-sharing with SGBs, pioneering enterprises (PEs), and other partners, IPSC builds both greater demand and supply of business development services (BDS), while improving providers’ capacity to understand and offer services desired in the marketplace.

One of IPSC’s main objectives is supporting Vietnamese enterprises to receive customized technical assistance under the overall support package “Pioneering Enterprise (PE) Program” to create products with added value and Vietnamese intellectual property, nurturing them to become sustainable models for other SGBs to emulate and scale up proven examples. A PE is a growing Vietnamese enterprise with Vietnamese-branded products, sufficient competitiveness, the ability to lead and expand in the industry, sector, and locality, strong management capacity, and willingness to innovate and produce products with high added value, with the vision and objective to build a Vietnamese brand in international markets. Positioning the “Made by Vietnam” product brand successfully in regional and international markets is a priority for PEs.

Each support package will be customized for the individual PE, depending on their situation, needs, development capacity, commitment to participate, and willingness to co-invest. The support packages will focus on facilitating BDSPs and technical experts to deliver consulting services and specialized training to help enterprises strengthen their governance, management capability, and strategies (including strategy development, business model refinement, brand positioning, marketing, innovation, communications, and human resource development). IPSC will develop Key Performance Indicators (KPIs) for each supporting package so PEs can quantify the results achieved and evaluate the effectiveness of the results.

Hong Ky Mechanical JSC., with 35 years of establishment and development, is the Vietnamese largest professional manufacturer of welding transformers, electronic welding machines, plasma cutting machines, woodworking machines, and steel industry machines.

Focusing on R&D and investment in new technology, Hong Ky takes full initiative in researching, manufacturing, and processing final products, bringing their own brand (Hong Ky) to users. Hong Ky not only sells products but also consults and perfects welding solutions for customers. This is a difference that distributors of imported products and competitors of Hong Ky do not have. Hong Ky is proud to be the first and only unit in Vietnam that has successfully designed and manufactured Inverter electronic welding machines, Tig welding machines, Mig welding machines, and plasma cutting machines.

1.    Scope Statement

IPSC is seeking a local qualified consultant to provide consultation services to Hong Kywhich will support to develop a Market Research for electronic welding machines and Go-to-market Strategy for the Indian Market. This is part of the MOU signed between AED, IPSC and Hong Ky (see Act No.1 and Initiative No. 2 of signed MOU, expand export market, focusing on Indian market).

2.    Task and Responsibilities/Deliverables and Implementation Plan

The selected Offeror will undertake the following tasks in close cooperation with Hong Ky, IPSC PE team and IPSC senior management. The selected Offeror will be responsible for all the tasks and deliverables listed in the table below. All deliverables must be agreed to and approved by Hong Ky’s representative.

No.	Activities	Deliverables	Tentative Due date	Estimated level of efforts
1	Workplan preparation and research design Conduct a kick-off meeting to develop a workplan and timeline with Hong Ky. Collect relevant information from leadership meetings with Hong Ky to develop a market research methodology and sampling techniques for the Indian market research. Conduct a meeting with Hong Ky and IPSC teams to provide an approach regarding market research methodology and sample techniques.	01 detailed work plan includes main phases/ milestones with detailed tasks and the timeframe both in Vietnamese and English.	15 October 2024	5 consultant days
2	Conduct the market research for the Indian market for electronic welding machines products, covering the following information: Identify the top 3-5 sectors with the highest demand for electronic welding machines products. Determine if these sectors engage in electronic welding machines products imports, specifying the origin if applicable. Discuss potential segments/ target markets to facilitate market development. Summarize legal, tax, customs, exporting procedures and certification requirements in Indian markets Analyze the methods employed in the importation of machinery. Provide strategic recommendations for potential segments or industries suitable for electronic welding machines products based on leading industry practices. Evaluate market opportunities and propose a strategic approach for the most effective market entry based on leading industry practices. Conduct a competitor/ SWOT analysis for Hong Ky. Identify sources of information for reaching customers and potential distributors, such as associations, fairs, or other information flow platforms that can support outreach efforts. Organize a follow up meeting with Hong Ky’s board of directors to present the insights of the report and facilitate following discussions: Align market insights with Hong Ky's capacity. Discuss report findings and their relevance with the Hong Ky’s potential target segment in the Indian market. Determining the cost-effective approach aligned with the chosen segments.	01 comprehensive market research report on the electronic welding machines products with relevant insights and recommendation for Hong Ky ’s target market 01 meeting minutes with presentation slides, feedback and recommendation, a participant list, and other facilitation materials.   The detailed report will be written in Vietnamese, with an executive summary provided in English.	30 December 2024	30 consultant days
3	Consult on a Go-to-Market Strategy for Hong Ky’s target market identified in previous tasks, covering a sales & marketing strategy and an execution plan detailing: Discuss potential segments/ target markets to facilitate market development. Summarize legal, tax, customs, exporting procedures and certification requirements in Indian markets. Assist Hong Ky in developing a detailed marketing and sales strategy to expand the market in the early stage (media channels and content, point-of-sale marketing activities, positioning and product pricing, etc.). Provide consultancy on sales closing and sales management processes for customers in the Indian market. Provide consultancy in developing a 12-month execution plan for the marketing and sales strategy developed above, outlining a sequence of activities, a comprehensive timeline, a practical budget, and resources.	01 go-to-market strategy report following the format defined by IPSC, outlining a sequence of activities, a comprehensive timeline, a practical budget, and resources. The go-to-market strategy should be approved by Hong Ky as it serves as Hong Ky’s execution workplan. The detailed report will be written in Vietnamese, with an executive summary provided in English.	30 March 2025	45 consultant days
4	Final report & presentation workshop The final report aims to compile the entire project's progress and the outcomes achieved. The subcontractor should actively consult Hong Ky and IPSC on the format style of the final report and organize a workshop to present the final research finding and go-to-market plan.	01 final report compiling all previous findings.   01 workshop reportwith presentation slides, meeting minutes, participant list   The detailed report will be written in Vietnamese, with an executive summary provided in English.	15 April 2025	10 consultant days

3.    Period of Performance, Mode, and Level of Effort

• Period of performance:     01 October 2024 to 30 April 2025
• Level of Effort:                90 consultant days
• Mode:                            Online/Onsite/Hybrid based on the determination from IPSC.
• Location:                        Long An province and HCMC, Vietnam

4.    Requirements for the selected offeror

• Vietnamese registration firm.
• Extensive experience working with companies in the welding transformers, electronic welding machines, plasma cutting machines and woodworking machines, steel industry machines and a deep understanding of the unique challenges and opportunities that these companies face.
• Over 5 years of experiencein conducting market research, both in qualitative and quantitative methods, customer segmentation research for B2B businesses and value chain with international partners.
• Having knowledge and experience in international markets. Be able to show the capability to Identify potential risks and challenges associated with expanding into international markets and propose risk mitigation strategies.
• A network of industry contacts and potential partners in the international markets. The ability to showcase and potentially develop these networks will be a plus in consideration.
• Capable of conducting direct surveys and interviews with customers across Hong Ky’s market segments to gain deep insights into their preferences, needs, and expectations.
• Having cultural awareness and understanding of the local business environment in Vietnam.
• Be able to show the capability to assess and recommend mechanisms to motivate agents, distributors, and sales partners, including incentive programs and performance metrics to ensure a motivated and aligned distribution network.
• Strong project management and marketing advisory capabilities to ensure that the market research and go-to-market strategy development process progresses smoothly with various stakeholders from Hong Ky within the specified timeframe. Possess at least proven track record of success in delivering similar projects in 3 recent years. References and examples of past work are required.
• Possessing excellent communication skills to facilitate collaboration and knowledge sharing among all stakeholders.
• The Offeror must submit both technical and financial proposals. Financial proposal must be submitted USD with PIT inclusive in a separate email to technical proposal and no PRICE information mentioned in technical proposal.

Proposals are requested to submitted to email: [email protected] before deadline Sep 20, 2024 with specific title:

Name of applicant - Application to Technical Assistance support package to HONG KY

USAID Improving Private Sector Competitiveness Key Concepts and Definitions

• Small and Growing Business (SGB): An organization/economic unit of Vietnam, including enterprises, under the provisions of the Law on Enterprises, cooperatives operating under the provisions of the Law on Cooperatives, and business households registered in accordance with Vietnamese law, which employs no more than 500 full-time employees, has growth potential but lacks the resources of knowledge, finance, human resources, and technology to realize its goals and growth potential.
• Pioneering SGBs or Pioneering Enterprises (PEs): A growing Vietnamese enterprise with Vietnamese-branded products, good competitiveness, the ability to lead and expand in the industry, sector, and locality, good management capacity and willingness to innovate and produce products with high added value, the vision/objective to build a Vietnamese brand in the international market.
• Business Development Service Provider (BDSP): Agencies, organizations and enterprises in both the public and private sectors with functions, duties/business lines providing non-financial services to support enterprises to improve operational efficiency and business development.
• Business Support Organization (BSO): An organization with the function and mission to connect and support business development, often including business associations/clubs, industries, etc.
• Department of Planning and Investment (DPI): A specialized agency of the Provincial People’s Committee, which functions as a consultancy and assists the Provincial People’s Committee in managing planning and investment, including the management of domestic and foreign investment in the province; management of official development assistance (ODA) sources, concessional loans from donors, foreign non-governmental aids; Business registration within the province; providing public services within the scope of state management of the Department in accordance with the law.

Organization: IPSC
Location:
Application deadline: 2024-09-20
Send application to: [email protected]