The United Nations Development Programme (UNDP) has made significant strides in building the capacity of vulnerable communities in Vietnam through initiatives aimed at both Social Impact Businesses (SIBs) and youth development. These programs not only help enhance access to markets and finance for social enterprises but also equip young people with essential skills, enabling them to actively engage in and adapt to the innovation ecosystem. UNDP’s efforts have fostered a supportive ecosystem, providing vulnerable groups with opportunities to contribute to the sustainable development of Vietnam.
Social Impact Business (SIB)
Social Impact Businesses (SIBs) are a crucial part of building community capacity by promoting sustainable socio-economic development. In Vietnam, SIBs are defined as organizations with a dual business model, focusing on both profit generation and creating positive social and environmental impacts that contribute to achieving sustainable development goals (SDGs). SIBs include social enterprises, circular economy models, and businesses that integrate sustainability into their economic, environmental, and social activities.
As of 2021, Vietnam has approximately 26,027 SIBs, representing 3% of the total number of businesses and cooperatives. These enterprises primarily focus on creating jobs and improving the quality of life for people, especially vulnerable groups in rural areas, with 36.4% operating in sectors like agriculture, aquaculture, non-agricultural livelihoods, forestry, and handicrafts. Despite their small size, 70% of SIBs in Vietnam are profitable, demonstrating the sustainability of the value-creating model in this sector.
ISEE-COVID Program
One of UNDP’s key interventions to support the growth of SIBs is the ISEE-COVID project—Leveraging Vietnam’s Social Impact Business Ecosystem to Respond to COVID-19. Funded by the Government of Canada and implemented from November 2021 to December 2024, the project strengthens the resilience of SIBs against the impacts of the COVID-19 pandemic, especially for vulnerable groups such as women and girls. The project’s main goal is to improve the effectiveness of SIBs’ operations and create a more gender-sensitive legal environment.
In 2023, the project supported 193 SIBs through programs aimed at enhancing business management, e-commerce, market expansion, and product/service development. The initiative also fostered knowledge exchange and networking between SIBs and intermediary organizations through events like SIB Leaders Gathering and the SIB CONNECT Festival. Additionally, the project published Vietnam’s first White Paper on Social Impact Businesses, providing a clear definition of SIBs and facilitating access to support programs for businesses.
By promoting collaboration among stakeholders, including government agencies (AED, MPI, provincial departments of planning and investment), international organizations (UNDP, Government of Canada), intermediary organizations (CSIP, SPARK, HATCH! Ventures, Evergreen Labs, Seed Planters, etc.), and SIBs, the project has created a more conducive environment for SIBs to grow. Ultimately, this initiative contributes to the achievement of sustainable development goals and improves the livelihoods of vulnerable groups in Vietnam.
Youth Co:Lab (YCL)
Youth Co:Lab (YCL) is a regional initiative founded in 2017 by UNDP and the Citi Foundation. Focused on the Asia-Pacific region, YCL’s goal is to invest in and empower young people to accelerate the achievement of SDGs through leadership, social innovation, and entrepreneurship. YCL has expanded its reach to over 255,000 young individuals and social entrepreneurs across 28 countries and territories in the Asia-Pacific region through various events, including national dialogues, regional summits, and social innovation challenges.
A 2023 evaluation revealed that YCL had supported 15,000 young individuals and over 1,700 youth-led teams in the fields of social innovation and entrepreneurship. Among these teams, 660 youth-led social enterprises successfully scaled their solutions to address SDGs.
The startup ecosystem in the Asia-Pacific region has greatly benefited from this trend, with the formation of 210 stakeholders through the Youth Empowerment Alliance. Vietnam is also actively participating in this movement. In 2018, YCL was launched in Vietnam, taking advantage of the country’s unique context, where 25% of the population is youth, making up 69% of the workforce. YCL has partnered with the Market Development and Science & Technology Enterprise Department (Ministry of Science and Technology), Vietnam Chamber of Commerce and Industry (VCCI), and relevant authorities to establish multi-stakeholder partnerships for program implementation.
More than 500 young entrepreneurs have been trained in SDG-based entrepreneurship, and 35 companies have received both financial and technical support through the SDG innovation incubation program. In 2023, YCL focused on university students, specifically addressing the lack of information in entrepreneurship curricula in most universities. YCL also aims to strengthen the role of entrepreneurship clubs and members as key stakeholders in social entrepreneurship and sustainable business activities.
Request Full Report & Join the Network
Interested in the full Vietnam Startup Ecosystem Report 2024? Join our network by making a request:
- Receive the full report for comprehensive insights.
- Get listed in the 2025 report and showcase your impact.
- Collaborate in building the next report with expert contributions.
- Sponsor the report development and gain exclusive exposure.
Stay updated on Vietnam’s innovation landscape by following us on NSSC’s official website.
