On December 11, 2024, social impact businesses (SIBs), government agencies, intermediaries, pioneering enterprises and investors attended SIB CONNECT 2024 - High-level Dialogue and SIB Ecosystem Day, to summarize the Project "Supporting the Social Impact Enterprise Ecosystem in Vietnam to Respond to COVID-19" (ISEE-COVID) and strategic direction for the ecosystem in the future.
The project “Supporting the Social Impact Enterprise Ecosystem in Vietnam to Respond to COVID-19” (ISEE-COVID), funded by Global Affairs Canada (GAC), and jointly implemented by UNDP and the Agency for Enterprise Development (AED), Ministry of Planning and Investment, aims to strengthen the resilience of social impact enterprises (SIBs) in Vietnam and contribute to reducing the impact of COVID-19 on vulnerable groups, especially women and girls.
The ISEE COVID project has the overall objectives of: (i) enhancing the capacity of social impact businesses (SIBs), thereby supporting vulnerable groups including women, people with disabilities, ethnic minorities, etc.; (ii) enhancing capacity and strengthening coordination among intermediary organizations supporting SIBs; (iii) enhancing the capacity of state management agencies to develop and implement policies to facilitate the development of SIBs, contributing to the implementation of sustainable development goals.
In 2021, Vietnam had approximately 26,027 SIBs, accounting for 3% of the total number of enterprises and cooperatives, and this group of business organizations demonstrates significant potential in addressing social and environmental challenges. However, the COVID-19 pandemic has caused major challenges, severely affecting the revenue and positive impacts of SIBs on the community, especially vulnerable groups such as women, ethnic minorities and people with disabilities.
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| UNDP Resident Representative in Viet Nam, Ramla Khalidi, "The project's achievements are not just about statistics, they represent restoring livelihoods, empowering communities and addressing environmental challenges." |
In that context, the ISEE-COVID Project, funded by Global Affairs Canada (GAC) and co-implemented by the United Nations Development Programme (UNDP) and the Agency for Enterprise Development (AED), Ministry of Planning and Investment, has been launched to support the SIB ecosystem in recovering from COVID-19, expanding operations, and strengthening cooperation among parties towards a sustainable development future.
After 3 years of implementation, the ISEE-COVID Project has supported more than 400 SIBs at different stages of development, of which nearly 60% are women-owned enterprises; Created nearly 15,000 jobs, mainly for women and vulnerable groups, such as ethnic minorities, people with disabilities and gender-diverse communities... Supported 68 SIBs to successfully expand domestic and international markets; Supported 5 outstanding SIBs to mobilize capital of more than VND 25.5 billion to expand production and business. 100% of SIBs have a better understanding of their units' positive social and environmental impacts, thereby having plans to continue to measure and improve these impacts. In particular, the Project has built a network of SIB clubs, built and operated by the SIBs themselves, connecting more than 500 members across the country, creating a platform for SIBs to share knowledge and business opportunities.
The project also supported the strengthening of the ecosystem by training 55 SIB support experts, thereby contributing to the development of a network of experts in localities such as Cao Bang, Thua Thien Hue and Tra Vinh. In addition, 87 intermediary organizations have been enhanced in their capacity to develop high-quality SIB support programs, and connected and learned from international experiences with the ecosystems of Canada, Korea, Philippines and Malaysia.
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| A SIB project by Marier has saved a traditional and unique handicraft village from the Co Bang tree - Pho Trach Dem, Thua Thien Hue. |
To provide policy support, the first SIB White Paper, as well as related policy studies, have been conducted to help SIBs be identified and more easily access government support programs. Over 300 representatives from state management agencies have been enhanced their capacity to support SIBs. Pilot policies to support SIBs in sustainable tourism development in Thua Thien Hue and Cao Bang have shown promising results for the development of local SIB ecosystems.
| According to the white paper, the number of social credit business organizations operating in the agriculture, forestry and fishery sector was lower before 2020 than in the service and industrial sectors, but it is expected to increase in 2021 due to the growth of the number of cooperatives in this sector. In terms of scale, most organizations are small and micro-sized. The financial situation of social credit business organizations in 2021 has significantly decreased in terms of capital, liabilities, assets and revenue due to the impact of various factors, including the impact of the COVID-19 pandemic and fluctuations in the economy. In general, the ability of social credit business organizations to access loans tends to increase with size, the smaller the social credit business organization, the more difficult it is to access loans due to lack of collateral, financial capacity and limited management skills. Despite many difficulties and challenges, TDDXH business organizations have high labor efficiency. The service sector has the most effective labor efficiency, followed by TDDXH business organizations in the agriculture, forestry and fishery sector. At the same time, 2021 has the highest growth rate in labor efficiency in the period 2017-2021. Moreover, the capital turnover index of TDDXH business organizations is also high, the highest is in organizations in the service sector. This shows that TDDXH business organizations are using working capital effectively in the period 2017-2021. In particular, TDDXH business organizations have had many positive impacts on society such as creating many jobs, generating income, especially for women, people in rural areas, difficult areas, ethnic minorities and many other disadvantaged and vulnerable people, using raw materials, indigenous knowledge, etc. The average income of workers at TDDXH business organizations tended to increase every year in the period of 2017-2019, however, the income of workers decreased slightly in 2020 and 2021, possibly due to the impact of the COVID-19 pandemic. On the other hand, the income of workers at TDDXH business organizations is always significantly higher (about 1-2 million VND/month) than that of workers in rural areas. |
Speaking at SIB CONNECT 2024, Mr. Bui Anh Tuan, Director General, Department of Enterprise Development, Ministry of Planning and Investment emphasized: “In the implementation of Vietnam's sustainable development goals, SIBs are an important component, contributing to economic development while also impacting society and the environment through job creation and providing products and services to vulnerable groups in society. The ISEE-COVID project has basically achieved its objectives in enhancing the capacity of social impact enterprises; strengthening coordination between intermediary organizations supporting social impact enterprises and enhancing the capacity of state management agencies to develop and implement policies”.
UNDP Resident Representative in Viet Nam, Ramla Khalidi, said: “From its initial idea of supporting businesses to overcome the impact of the COVID-19 pandemic, the project has transformed a loosely connected network of socially minded businesses into a well-established ecosystem. The project’s achievements go beyond statistics, representing the restoration of livelihoods, empowerment of communities and addressing environmental challenges. These achievements embody the true spirit of social impact businesses: a commitment to profit coupled with meaningful purpose.”
Highlights of SIB Connect 2024 include in-depth dialogues, networking opportunities, expert advice and exhibitions of high-quality products from social impact businesses (SIBs), all of which demonstrate the dynamism and diversity of this ecosystem. However, from the actual implementation, experts also pointed out an important lesson in SIB development: in addition to building key mechanisms, there is a need for connecting intermediaries to support SIBs in turning ideas into reality through training consultancy, experience sharing and connecting resources not only in finance but also in pioneering enterprises, markets, policy development...
The ISEE-COVID project has come to an end, but its legacy will continue to shape a thriving and sustainable SIB ecosystem in Vietnam, propelling stakeholders towards a green and sustainable future where no one is left behind.
Source: https://thoibaonganhang.vn/sib-connect-2024-kien-tao-tuong-lai-he-sinh-thai-to-chuc-kinh-doanh-tao-tac-dong-xa-hoi-158705.html
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