As a result of a series of discussions between the two companies in Dan mark and in Vietnam and a practical implementation by Bac Ninh Co for bamboo mat ordered by Prodex A/S on the beginning of December 2005, the two companies has decided to investigate a business co-operation through a start up project between Bac Ninh Co and Prodex A/S

Project objectives

The partners’ goal is to initiate a strategic co-operation within production of Bamboo fences & mat to be sold at the European market. Bac Ninh is in charge of production and quality control and Prodex is in charge of the marketing of the products.

The strategic co-operation between the two partners shall pave the way for a long-term co-operation. In the long term, the co-operation is aiming at establishing a separate business unit which could be in the form of a join venture within production of bamboo fences & mat and other related products.

Form of co-operation

Bac Ninh Co and Prodex have agreed on the start-up project with the declared purpose of initiating a long-term co-operation within production of bamboo fences & mat in Vietnam and sold/marketing in Europe by Plus.

The business concept is:

 - To increase the market share of bamboo fences & mat in Europe market for both Bac Ninh and Prodex
 -  To create an assortment of high quality bamboo fences & mat for European market
 - To develop new products in Join co-operation
 -  To transfer practical training from Prodex to Bac Ninh Co within:

• Understanding European design / collection
• Raw material treatment/ material suppliers
• Management
• Production
• Quality control in general.

Bac Ninh Co has the responsibility for finding locally materials and the start up of new activities within the existing facilities and subcontractor network.

Sales and marketing

The project’s commercial opportunities are promising, especially because both companies are very well established within trading and manufacturing of handicraft products.

Generally, interest in bamboo fences & mat has increased considerably in Europe and Scandinavian countries in recent years. Vietnam is one of a few Asian countries has advantage of having plentiful of natural bamboo in the forest and in villages areas.