Following the successful pilot between Sydfyns Trælegetøj ApS and SD Toys Private Enterprise, the Embassy of Denmark has approved a new grant of DKK 1,000,000 to support the partners in setting up a joint venture specialized in high quality wooden toys.
The local company SD Toys Private Enterprise has more than 20 years of experience in producing educational wooden toys for local markets and a number of export markets worldwide. As a result of the business development, this Mekong Delta-based manufacturer is keen on expanding its market and exploiting its spare production capacity. The initial cooperation with Sydfyns Trælegetøj has opened up opportunities for the company to materialize its expansion.
With 21 years of experience in making wooden toys for kindergartens and institutions in Denmark, Sydfyns Trælegetøj ApS has gained a wide range of technical and management experiences at international level. The company would like to maintain its competitiveness by reducing production cost. Hence, cooperating with SD Toys has been chosen as a strategic decision.
As the partners have justified their commitment and common interest in building up a long-term partnership, the establishment of a joint venture of equal ownership has been agreed. The new grant will mainly facilitate the transfer of necessary know-how from Danish to Vietnamese employees, particularly in the areas of production and management skills. A great part of the grant is also allocated to investments in improving external and working environments as well as for boosting Corporate Social Responsibilities activities.
This implementation phase is projected for three years. The partners then will continue to run the joint venture on their own. The partners expect to recruit at least 13 new employees during the first phase of the project together with the enhancement of skills and competences for more than 30 people employed in the pilot phase.
