Creating added value to the Mekong coconut waste streams The business partners intend to produce high quality industrial grade coconut yarn for export out of the fibres in the coconut husks. The project will directly create a minimum of 120 jobs in the rural Mekong Delta, south Vietnam. A farmer network will be set up to secure raw materials. These farmers will receive specific training. The income of 400 collaborating farmers is expected to be positively influenced. Industrial grade yarn is a semi-finished product which can be used e.g. in the production of floor mats. One of the world market leaders in floor mats for the professional industry is currently dealing with a shortage of coconut yarn and with irregular supply. It experiences a growing world-wide interest for this product. The market player therefore strongly supports the initiative and has committed itself to buy the initial output of the project and to also provide technological support. This project aims to process still underutilised waste into valuable products which prevents this waste from building up. Its success may contribute to the foundation of a new, sustainable industry in the Mekong Delta, where Vietnam's coconut sector is concentrated. This sector is currently fragmented, inefficient and lacks a professional processing industry. The coconut growing farmer population in the Mekong Delta is extremely poor and most of the value is still added abroad in countries like China, India or Sri Lanka where Vietnamese raw coconut materials are exported to and completely processed.Corporate Social Responsibility (CSR)The informal CSR policy of both partners will be implemented in the project:•	Striving to have a well-balanced employee amount with equal numbers of men and woman.•	Setting European standards for safety (VCA) and conduct an ISO 9001 Certification.•	No child labour at suppliers, own businesses and customers.•	Have an independent employee board that discusses issues regularly with the management board and shareholders.•	Being as environmental friendly as possible, always striving to reduce waste output to zero.•	Manage the processes environmental friendly with the help of ISO 140000.•	Conducting community support structural with medical care and financing small scale community initiatives whenever possible.Impact•	Employment and working conditionsAt the end of the project 120 people will be involved in operating the factory.Indirect employability will be substantial: the collection of coconut husks by the 400 farmers (and co-workers) and the extra logistics involved will generate at least another 50 jobs.Workers are expected to receive 25% extra on top of the minimum wage.In order to prevent the employees from leaving it will be necessary to pay an extra premium above the market rate.A central kitchen will provide free basic meals. A small medical centre medically educated personnel will serve employees and their families with basic aid. A doctor and a dentist will periodically visit the centre. The young children of the workers can attend the factory's day care facility.•	Innovation / Transfer of knowledgeAn important part of the knowledge transfer will be passed on by clients and the machine suppliers and their training in machinery operations, yarn production and quality control all of which is new knowledge.Also, the advanced management training of applicant is quite unique and provides an exposure to western standards.•	Chain effectsThe chain effects have an impact on the following groups:- Strengthening the capacity of 400 small coconut farmers (0.1 to 5 ha of coconut plantation) with TA. This may expand in the second stage of the project to 800 to 1,000 famers;- 24 commune/area- and village-level coconut collectors and white meat processors;- 5 candy manufactures;- one or two local area coconut enterprises associations (50 members).•	EnvironmentSome positives environmental effects may be expected:1. A reduction of the build-up coconut husk waste in the Mekong Delta;2. A reduction of the unwanted burning of waste fibres as a by-product of peat/copra production resulting in reducing CO2 and other unwanted emissions;3. Improved erosion control: the project stimulates the planting of new coconut trees.This proposed project does not generate any waste, since all the products that enter the facility are completely processed, while no (contaminated) waste water or other foreign materials enter or leave the production process. Special certifications (besides some local and regional licenses) are therefore not needed and an EIA is not required.•	Position of womenWomen will perform most of the production work in the factory and it is expected that 90% of the production work will be done by women. From the 120 people employed, more than 70% (84) will be women.The other woman positions will be: marketing manager, financial manager and support staff, secretaries and general assistance. The day care centre for young children will also promote the participation of women in the production process.The indirect employability, especially the collection of husks will be performed by a 50/50% mix of men and women. Men in this company will be in supportive positions in logistics and operating heavy machinery like a decorticator. To set up a new joint venture and coconut yarn manufacturing industry in the Mekong Delta in Vietnam capable of producing 54 tons of industrial standard yarn per month and employing 120 people.