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
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