Social Enterprise in Vietnam PDF

SOCIAL ENTERPRISE
IN VIETNAM
Hanoi, March 2019

SOCIAL ENTERPRISE
IN VIETNAM
SOCIAL ENTERPRISE IN VIETNAM
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FOREWORD
Social enterprises operate with the dual aim of generating financial return while simultaneously
advancing a social mission. In Vietnam, the term social enterprise is used to refer to a
business that is created to address or solve a critical social or environmental problem in a
financially sustainable and potentially profitable way. Some social enterprises are created,
operated or owned by non-profit, charitable organisations as a means of generating income
or to otherwise further their social mission. Other social enterprises are incorporated as for-
profit entities and have a business strategy that is designed to achieve a social objective. They
reinvest their financial returns into the community to further their social or environmental
purpose or to create employment or other economic and social benefits for society, especially
marginalised communities.
Before 2012, the term social enterprise attracted little attention in Vietnam. It was not until
2014 that the term social enterprise was officially recognised as a distinct type of organisation
in Vietnam’s Enterprise Law, thereby paving the way for a more developed ecosystem of social
enterprise support. However, five years on, the development of the social enterprise sector has
been more modest than some would have hoped. Social enterprises can face many challenges
and difficulties, such as lack of funds, skills, technology, land and information. In addition,
the government’s policies need further improvement. This overview of the state of social
enterprise in Vietnam can help identify the state of play, recent challenges and potential for
further development.
On that basis, CIEM has partnered with the British Council’s Global Social Enterprise programme
to conduct a baseline survey of social enterprises in Vietnam, as part of a wider programme
across the globe. This overview of social enterprises in Vietnam can help to address key issues
that can enable social enterprises across the country to grow their business and increase their
impact. We hope it can be helpful for a range of stakeholders in Vietnam, for potential partners,
policymakers, academics and representatives from the business community.
Dr Nguyen Dinh Cung

President
Central Institute for Economic Management
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ABOUT THE
BRITISH COUNCIL
OUR WORK IN VIETNAM
The British Council is the UK’s international organisation for cultural relations and educational
opportunities. We create friendly knowledge and understanding between the people of
the UK and other countries. We do this by making a positive contribution to the UK and the
countries we work with – changing lives by creating opportunities, building connections and
engendering trust.
We work with over 100 countries across the world in fields of arts and culture, English
language, education and civil society. Last year we reached over 75 million people directly and
758 million people overall including online, broadcasts and publication. Founded in 1934, we
are a UK charity governed by Royal Charter and a UK public body. We have been working with
Vietnam since 1993.
We aim to contribute to inclusive economic growth in Vietnam through our social enterprise
programme. We promote the development of social enterprise as a means of addressing
entrenched social and environmental problems and delivering positive change to our
communities and societies. Our Global Social Enterprise programme draws on UK and global
experience and is delivered across more than 30 countries with local and international
partners.
This research is one in a series of surveys undertaken by the British Council around the world
(http://www.britishcouncil.org/society/social-enterprise/reports).
The objective of this survey is to provide a summary of the current size, scale and scope of the
social enterprise sector in Vietnam.
In addition, this study aims to contribute to the development of social enterprise globally by
allowing other actors to assess the sector’s progress, and identify possible entry points for
supporting growth or for participating in social enterprise.
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ABOUT THE UNITED

NATIONS ECONOMIC AND
SOCIAL COMMISSION FOR
ASIA AND THE PACIFIC
The Economic and Social Commission for Asia and the Pacific (United Nations ESCAP) serves as
the United Nations’ regional hub, promoting co-operation among countries to achieve inclusive
and sustainable development. The largest regional intergovernmental platform with 53 member
states and nine associate members, United Nations ESCAP has emerged as a strong regional
think-tank, offering countries sound analytical products that shed insight into the evolving
economic, social and environmental dynamics of the region.
The Commission’s strategic focus is to deliver on the 2030 Agenda for Sustainable
Development, which is reinforced and deepened by promoting regional co-operation and
integration to advance responses to shared vulnerabilities, connectivity, financial co-operation
and market integration. United Nations ESCAP’s research and analysis, coupled with its policy
advisory services, capacity building and technical assistance to governments, aims to support
countries’ sustainable and inclusive development ambitions.
In February 2017, the British Council and United Nations ESCAP signed a collaborative
agreement to promote the growth of social enterprise and impact investment across the Asia-
Pacific region, as a means of supporting progress on the Sustainable Development Goals (SDGs).
Together, we are co-operating to provide research, analysis, training and policy dialogues,
and are offering guidance to support policy makers and other stakeholders in formulating
and implementing policies and strategies that foster social enterprise and create enabling
environments for impact investment.
This survey of social enterprise in Vietnam is an example of this work, and will provide
information as to the size and scale of the social enterprise sector in the country. Social
enterprises harness trade, investment and business activity towards social and environmental
objectives, and are increasingly recognised as critical drivers of innovation for sustainable
development.
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ABOUT CENTRAL
INSTITUTE FOR
ECONOMIC MANAGEMENT
The Central Institute for Economic Management (CIEM) was established in 1978 as the Central
Party’s Economic Management Research Institute. For 40 years, CIEM has been contributed
directly and indirectly to and promoted the process of innovation and comprehensive reform
of the economy. It has also helped to develop a contingent of senior economic management
officials of the Party and the State. CIEM has been a leading research agency in Vietnam for
economic research and policy advice on innovation and economic development. The institute
focuses on the strategic and practical issues of reform and development of the Vietnamese
economy. In 2012, it was rated as one of the world’s top 80 policy research institutes in the
field of national economic policy (according to 2013 Global Go-To-Think-Tank Index). With its
contributions, the Central Institute for Economic Management has been recognised by the Party
and the State, and has received awards such as the First-class Independence Medal (2013), the
Second-class Medal Independence (2008) and the First-class Labor Medal (2003), and other
noble awards such as the Emulation Flag of the Government, the Merit of the Prime Minister,
and the Merit of the Minister of Planning and Head Investment. In 2017, the Central Institute
for Economic Management was honoured to be one of 12 national teams with outstanding
achievements in the cause of national renovation recognised at Vietnam Glory - imprint 30
years of renovation.
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ACKNOWLEDGEMENTS
This study is led by the British Council and supported by United Nations ESCAP. It was conducted
by the Central Institute for Economic Management, with input from Social Enterprise UK.
We would like to acknowledge the valuable feedback provided by:

• Mr Dan Gregory, Social Enterprise UK
• Mr Tristan Ace, British Council
• Ms Tran Thi Hong Gam, British Council
• Ms Doan Thanh Hai, British Council
We would also like to thank the following partners for their contributions to the report:
• Dr Nguyen Dinh Cung, Central Institute of Economic Management
• Ms Nguyen Minh Thao, Central Institute of Economic Management
• Mr Ngo Minh Tuan, Central Institute of Economic Management
• Dr Luu Minh Duc, Central Institute of Economic Management
• Ms Nguyen Thi Huyen Trang, Central Institute of Economic Management
• Ms Hoang Thi Hai Yen, Central Institute of Economic Management
• Ms Pham Kieu Oanh, Centre for Social Initiatives Promotion
• Associate Prof Dr Truong Thi Nam Thang, Centre for Social Innovation and Entrepreneurship
In addition, we would like to take this opportunity to thank the Hanoi Department of Labour –
Invalids and Social Affairs, the Department of Co-operatives Development (under MPI) and Nguyen
Tat Thanh University (Ho Chi Minh City) for their great co-operation and enthusiasm in sharing
information, experiences and views to help us complete the survey.
Finally, we would like to thank all of the non-governmental organisations, co-operatives, micro,
small, and medium enterprises, social enterprises and entrepreneurs who completed the survey
and participated in our workshops.
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TABLE OF CONTENTS
FOREWORD 5
ABOUT THE BRITISH COUNCIL 6
ABOUT THE UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION

FOR ASIA AND THE PACIFIC 7
ABOUT CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT 8
ACKNOWLEDGEMENTS 9
ACRONYMS 12
1. EXECUTIVE SUMMARY 14
2. METHODOLOGY 16
2.1 Purpose 17
2.2 Research Overview 17
2.3 Classifying Social Enterprises 18
2.4 Estimating the number of social enterprises in Vietnam 18
3. OVERVIEW: COUNTRY CONTEXT AND EXISTING RESEARCH ON SOCIAL ENTERPRISE 20
3.1 Overall Country Policy 21
3.2 Policy Review in Relation to Social Enterprise 22
3.2.1 Social Enterprise in Vietnam 22
3.2.2 Legislation and policies relevant to social enterprise 23
3.2.3 Key players in the social enterprise ecosystem 25
3.2.4 List of key players in the social enterprise ecosystem 27
3.3 Existing research on social enterprise in vietnam 31
4. SURVEY FINDINGS 33
4.0 Social Enterprise Survey sample 34
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4.1 Social Enterprise Leadership 34
4.1.1 Age 34
4.1.2 Gender 34
4.1.3 Education attainment 35
4.2 Years of Operation 35
4.3 Geography of Operations and Reach 36
4.4 Legal Status of Social Enterprises 38
4.5 Area of Focus (Sector) 40
4.5.1 Objectives 40
4.5.2 Sectors 41
4.6 Social Impact 42
4.7 Job Creation from Social Enterprises 43
4.8 Profits and turnover 43
4.9 Growth Plans and Barriers 45
4.9.1 Growth plans 45
4.9.2 Barriers to growth 46
4.10 Finance sources and constraints 47
4.10.1 Sources of funding and finance 47
4.10.2 Financing constraints 48
4.10.3 Other forms of support 49
CONCLUSION 51
RECOMMENDATIONS 53
BIBLIOGRAPHY 54
ANNEX 1 – SURVEY QUESTIONS 55
ANNEX 2 – SOCIAL ENTERPRISE IN HIGHER EDUCATION IN VIETNAM 61
CIEM Central Institute for Economic Management
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ACRONYMS
CSIE Centre for Social Innovation and Entrepreneurship
CSIP Centre for Social Initiatives Promotion
CSR Corporate social responsibility
NEU National Economics University
NGO Non-governmental organisation
SDGs Sustainable Development Goals
SMEs Small and Medium Enterprises
UNDP United Nation Development Programme
VCCI Vietnam Chamber of Commerce and Industry
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LIST OF
FIGURES AND TABLES
19 35 42 47
TABLE 1 FIGURE 3 FIGURE 9 FIGURE 14
Prevalence rate and Years of operation Types of direct Sources of funding
estimated number beneficiaries and finance of social
of social enterprises
among SMEs, co-
36 supported by social
enterprises
enterprises
FIGURE 4
operatives and NGOs
Geography of 48
Operations 43 FIGURE 15
25 FIGURE 10 Financing constraints
TABLE 2
Legislation and
37 Profit/surplus of social
enterprises
of social enterprises
FIGURE 5
policies relevant to
Geographical Reach 49
social enterprise
44 FIGURE 16
27 39 FIGURE 11
Turnover of social
Support programmes
that have benefited
FIGURE 6
TABLE 3 enterprises social enterprises
Legal Status of Social
List of key players in
Enterprises
the social enterprise
ecosystem
45 50
40 FIGURE 12
Social enterprises’
FIGURE 17
Form of support
34 FIGURE 7
Social enterprises’
growth plans
FIGURE 1
objectives
Age of social
enterprise leaders
46
41 FIGURE 13
Barriers to growth
35 FIGURE 8
Social enterprise
FIGURE 2
sector
Education level of
social entrepreneurs
13
1. EXECUTIVE SUMMARY
14
Vietnam’s economy has radically transformed is a new wave of start-up social enterprises in
over the past few decades. Despite this, Vietnam Vietnam. These are profitable businesses and
continues to grapple with social challenges optimistic about the future. They take diverse legal
such as poverty, unequal access to public health forms and work across a range of sectors across
and education and the need for environmental the country.
sustainability.
Most social enterprises in Vietnam are on a
Social enterprises are businesses with a social mission to create jobs. They are supporting
mission, set up to address these challenges. In disadvantaged people and are nurturing
the past decade, interest in social enterprise and spaces for women and young people to take on
social entrepreneurship has grown significantly in leadership roles. Nearly half of social enterprise
Vietnam, not only among budding entrepreneurs, leaders are women, compared to 37 per cent of
but also among non-governmental organisations, small and medium enterprises (SMEs) more widely.
policy makers, funders and academics.
Yet, like any other businesses, social enterprises
In 2014, social enterprise was officially recognised do face barriers, and support is crucial to helping
as a distinct type of organisation in Vietnam’s them overcome these. The government has
Enterprise Law. This was an important milestone, developed significant policy steps to support SMEs
enabling the ecosystem to further develop with in general and social enterprises in particular,
the support of a range of stakeholders. but more work is needed, particularly on policy
implementation. Social enterprises should be
Subsequently, new social enterprises have
supported to make better use of existing policies,
emerged and other organisations that were
programmes, funding and incentives available
already pursuing a social enterprise model have
to them. Meanwhile, other stakeholders can do
embraced the concept and terminology. More
more to help spread greater awareness and
intermediaries and networks have been founded;
understanding of social enterprise across Vietnam
several universities have started social enterprise
more widely.
incubation programmes; and further new social
enterprises have been established.
This study was commissioned by the British

Council. The purpose of the study is to map the
Vietnamese social enterprise landscape and to
identify key opportunities and issues that need to
be addressed to create a healthy and sustainable
ecosystem for social enterprises to thrive.
This research is based on quantitative information

obtained from a total of 142 survey respondents
across Vietnam. This data is further supported
by in-depth interviews and roundtable sessions
with social entrepreneurs, government agencies,
funders, support organisations and other key
stakeholders.
We have found that the social enterprise sector

in Vietnam is diverse, vibrant and growing. There
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2. METHODOLOGY
16
2.1 PURPOSE than 300 organisations, complied from the existing

databases of the Centre for Social Innovation and
The primary aim of this study is to provide an Entrepreneurship (CSIE) and the Centre for Social
insight into social enterprise in Vietnam, including Initiatives Promotion (CSIP). Data was collected
providing an estimate of the scale and scope of from a structured web-based questionnaire made
the sector. available in English and Vietnamese, in-person
and phone interviews, workshops and roundtable
It also assesses existing policies that are relevant
discussions.
to social enterprise, and analyses how these have
been implemented. The survey of social enterprises sought the
following information:
Although this survey provides an indication of
• Year of establishment and form of legal
the state of social enterprise, rather than a fully
registration
representative sample, we nevertheless aim
• Turnover and profit generation and use
to highlight the changes social enterprises go
• Employees, by gender
through, and offer deeper insight into measures
• Number and type of beneficiaries reached
that have helped their growth, as well as obstacles
• Gender and age of leadership
that have yet to be addressed. Finally, we hope
• Social enterprise sector and focus/core
this evidence will provide guidance for future
objectives
interventions to further develop social enterprises.
• Location and sphere of operation (regional,
national, international)
2.2 RESEARCH OVERVIEW • Profit/impact focus
• Growth expectations and plans, and barriers
The research for this study was conducted
faced
between October 2018 and January 2019. A total
• Sources of finance and funding, including
of 92 responses were collected online, and 50
proportion of income from grants/donations
survey responses were conducted via telephone,
• Financing constraints
making a total of 142 organisations completing the
• If respondents viewed their organisation as a
survey. The study draws form a database of more
social enterprise.
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2.3 CLASSIFYING SOCIAL 2.4 ESTIMATING THE

ENTERPRISE NUMBER OF SOCIAL
While the definition of social enterprise may ENTERPRISES IN VIETNAM
be relatively formalised in some parts of the Previous research on social enterprise in Vietnam
world, there is no single, universal definition. For has attempted to identify and estimate the scope
the purpose of our work, we classified social and scale of social enterprises in the country.
enterprises as business activity that is primarily According to the Survey Report on Social
motivated by social good, where profits are Enterprises in Vietnam (2011), there are four main
reinvested towards a social cause. areas from which social enterprise emerge: non-
When filtering the survey responses, we used governmental organisations (NGOs), traditional
three main questions to identify an organisation as firms, voluntary associations/clubs and co-
a social enterprise as opposed to other for-profit operatives.
businesses or non-profit organisations: In 2012, the report Social Enterprise in Vietnam:
concepts, context, and policies (2012) identified
1. Is profit or social good the primary motivation
about 200 ‘core’ social enterprises. Pham et al.
of the business, or are both prioritised?
(2016) added an additional category: incubated
projects supported by intermediary organisations.
2. If it is a profit-driven enterprise, how are the
profits used? In the most recent study carried out by the CSIE
and the United Nations Development Programme
3. What is the proportion of revenue earned from (UNDP) (2018), the number of social enterprises
grants or endowments? officially registered with the government was 80.
The six organisations reporting their core mission To produce an estimate, we looked at three wider
as ‘profit first’ were eliminated. Organisations categories of organisations that could include
reporting that profits were ‘directed to external social enterprises in Vietnam: SMEs, co-operatives
owners/shareholders’ were only eliminated if they and NGOs. Based on other relevant research, we
had also selected that they were ‘profit first’. estimated the prevalence rate of organisations
that exhibited social enterprise characteristics for
Seven organisations reporting that 70 to 100
each category, as follows:
per cent of their revenue came from grants
or endowments were also eliminated, as this
indicates that trading is not a significant part of
their business model.
Therefore, from our initial total of 142

respondents, 129 organisations remained, and
these could be classified as social enterprises for
the purposes of this survey.
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Table 1: Prevalence rate and estimated number of social enterprises among SMEs, co-operatives
and NGOs
Expected
total
Prevalence
Source Quantity number Notes
rate
of social
enterprises
- SMEs account for 98.1% of the

517,924 enterprises2;
SMEs 508,083 1.1%1 5,589 - 1.1% is the prevalence rate of

nascent social entrepreneurial
activity (SEA-SU-BRD) in Vietnam.
- GSO Economic Census 2017
Cooperatives 12,536 100% 12,536 - Co-operatives can be considered

social enterprises.
- CIEM, CSIP and BC (2012); CSIE and

UNDP (2018)
NGOs (including
associations,
n.a. n.a. 1,000 - No official figure for the number
charities, funds, of NGOs exists, so we have taken a
clubs) cautious estimate based on input
from expert stakeholders.
Total number 19,125
Based on the criteria and assumptions above, it is its kind, and is far from statistically robust, hence it
possible to make a provisional estimate of the total should not be interpreted as an accurate estimate
number of social enterprises in Vietnam as 19,125 but merely the basis for further research.
enterprises. This calculation is the first attempt of
1.
Such a ratio is estimated by Global Entrepreneurship Monitor 2015 to 2016: Special report on Social
entrepreneurship.
2.
According to the General Statistics Office (GSO Economic Census – 2017) in Vietnam, the total number of
registered enterprises nationwide by the beginning of 2018 were 517,900; and SMEs accounted for 98.1% of the
total, i.e. 509,060 SMEs.
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3. OVERVIEW: COUNTRY
CONTEXT AND EXISTING
RESEARCH ON SOCIAL
ENTERPRISE
20
3.1 OVERALL COUNTRY foreign direct investment, and ensure domestic

enterprises can play a greater role in global and
PROFILE regional value chains.
Vietnam is one of the most dynamic countries in While both current and future economic growth in
South East Asia. The Doimoi ‘Renovation’ reforms, Vietnam are very promising, the benefits do not
launched by the government in 1986, have always extend to all areas of society. Vietnam is
spurred economic growth that has transformed an ethnically diverse country with 54 recognised
Vietnam from one of the world’s poorest nations to ethnic groups. The majority of the population (85.5
one with lower-middle income status. per cent) belongs to the Kinh ethnic group, and
Robust growth has boosted job creation and the 53 other ethnic groups in Vietnam account
incomes. In 2018, the country’s gross domestic for the remainder of the population – around 13.4
product (GDP) increased by around seven per million people. Many of these ethnic minority
cent. This was due largely to expansion in the groups are concentrated in geographically
service sector, which accounts for over 40 remote and mountainous regions of the country.
per cent of GDP, as a result of buoyant private Inequalities between the Kinh ethnic group and
consumption and record tourist arrivals. Strong ethnic minority groups remain wide and persistent,
industrial and construction growth accounting for especially in education and training, employment
34.28 per cent of GDP is also a major contributor, and income, healthcare and reproduction. The
while strong performance in the export-oriented gender gap among and within ethnic minority
fishery subsector has led to an increase in groups also persists.
agriculture output (General Statistic Office, 2019).
The population of Vietnam reached nearly 95

million in 2018, up from around 60 million in 1986.
It is expected to expand further to 120 million by
2050. Currently, 70 per cent of the population is
under 35 years of age, with a life expectancy of
close to 73 years. However, the population profile
is ageing rapidly. There is an emerging middle
class, currently accounting for 13 per cent of the
population, and this is expected to reach 26 per
cent by 2026.
The labour force is made up of nearly 50 million

people, with a low unemployment rate of only
two per cent. As Vietnam works to prepare its
workforce for future labour market trends, the
World Bank has suggested that future employment
in Vietnam will still depend on a mix of traditional
and emerging sectors. The World Bank has also
advised that the government of Vietnam should
pay more attention to the business environment
to help facilitate innovation, attract high-quality
21
3.2 POLICY REVIEW IN to resolve a number of social and environmental

issues for a social purpose; and reinvests at least
RELATION TO SOCIAL 51 percent of total profits to resolve the registered
ENTERPRISE social and environmental issues’ (Article 10,
Enterprise Law).
3.2.1 Social enterprise in Vietnam
The development of social enterprises in Vietnam
Social enterprises are often understood as a
can be divided into three main stages:
‘hybrid’ model between non-governmental,
non-profit organisations and private sector
(i) Prior to 1986 – collective ownership through
businesses. Social enterprises can take different
co-operatives serving the needs of vulnerable
legal forms in Vietnam, including NGOs, limited
or disadvantaged communities
companies, joint stock companies, co-operatives,
funds and associations. (ii) From 1986 to 2015 – the idea of social
In Vietnam, the concept of social enterprise enterprise starts to become associated closely
is still relatively new and was widely unknown with NGOs and funding mainly from foreign
before 2014. While prior to then, some social organisations
enterprises were being established, it was

(iii) From July 2015 – the first Vietnamese law on
not until July 2015 that the first Vietnamese
social enterprise becomes effective.
law on social enterprise came into effect, and
the concept of social enterprise was officially With this legal recognition of social enterprise, the
recognised for the first time. social enterprise sector is now expected by some
observers to further develop and expand in the
According to this law, social enterprise is defined
coming years, further contributing to the process
as ‘an enterprise that is registered and operates
of economic and social development in Vietnam.
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3.2.2 Legislation and policies relevant • Can access technological support in the
to social enterprise form of research, training, consultancy and
technology transfer
Vietnam’s government has started to prioritise
sustainable development and promote business • Can access support for market expansion –
for sustainable development, including the enterprises in which at least 80 per cent of
Socio-Economic Development Plan of Vietnam, the SMEs in their supply chain manufacture
and the United Nations SDGs. In 2012, Vietnam their products in Vietnam are entitled to (i) an
announced its Sustainable Development Strategy, exemption or reduction of land rent, land use
while in 2017, the government issued the National fees and non-agricultural land use tax and (ii)
Action Plan to implement the 2030 Agenda for an exemption or reduction of corporate income
Sustainable Development. tax for a limited time
While most social enterprises fall under the • Can access support for human resource
umbrella of government policies relating to SMEs, development – SMEs are exempt from or
social enterprises working in different sectors may subsidised for the cost of participating in
also be subject to certain restrictions or enjoy training courses on business start-up and
preferential policies according to the context corporate governance, as well as vocational
in which they operate. These different sectors training for employees working at SMEs
may include public services, environmental • Can access support with information, advice
protection, investment in mountain areas, or and legal issues.
vulnerable groups, for instance. Below is a brief
overview of some of the benefits afforded to social Policies for enterprises providing public services
enterprises, depending on which legal framework
Social enterprises operating in social and
they fall under.
environmental areas may be entitled to support
Policies in accordance with the Enterprise Law and under Resolution No. 05, which promotes
the Law on Encouragement of SMEs education, healthcare, culture, physical training
and sports activities. According to Decree No.
These SMEs, which may include social enterprises: 69, government support for public services could
• Can leverage support from credit institutions include:
to increase loans for SMEs such as credit • Subsidies for infrastructure and land, such as
guarantees (Article 9) long-term leases at a preferential rate
• Can access tax and accounting support – SMEs • Receiving or leasing land with site clearance
have a corporate income tax rate lower than and exemption from land-use levy or rent
the normal tax rate
• Exemption from registration fees charged
• Can access support for the costs of production for the use of land and ownership of assets
premises – in certain localities, SMEs may attached to land
be allocated land in industrial clusters, such
as processing areas of agricultural, forestry, • Preferential tax policies, such as a ten per cent
fishery and seafood products and receive enterprise income tax rate, exemption from
rental price subsidies for up to five years enterprise income tax for four years and a 50
per cent reduction for the subsequent five years
23
• VAT exemption for medical services and • Favourable conditions for organisations and
treatments, education and import of machinery individuals to set up social enterprises targeted
and equipment for scientific research or aid at addressing social and environmental issues
in the public interest
• Preferential export tax and import tax
• Investment incentives
• Credit policies, such as loans or post-
investment support. • Access to foreign non-governmental aid to
resolve social and environmental issues.
Social enterprise specific policies
A total of 54 enterprises have currently been
In addition, social enterprises registered under
registered as social enterprises in accordance
the Law on Enterprises 2014 are entitled to
with Article 10, Law on Enterprise. Although these
preferential policies outlined in Decree No.
policies to support social enterprises do exist,
96/2015/ND-CP, including:
until now, their impact appears to have been
relatively minimal.
Other policies exist that are not aimed explicitly at

social enterprises, but which may be applicable,
including:
• Policies for co-operatives specified in Decree

193/2013/ND-CP, which include support with
subsidies for formal and technical training,
trade and market expansion and the application
of new technologies
• For co-operatives engaging in certain fields,

an exemption from output VAT, while still
being entitled to input VAT credit, as well as
a corporate income tax (CIT) exemption or
reduction for several years after establishment
• For enterprises investing in some selected

sectors or with difficult socio-economic
conditions, benefits such as a CIT rate of ten
per cent for a period of 15 years, or a four-year
tax exemption and a reduction of 50 per cent
of payable tax for subsequent years for clean
energy, environmental protection and waste
treatment
• For businesses in which people with disabilities

account for at least 30 per cent of the
workforce, preferential policies such as support
to improve the workplace and the surrounding
environment, CIT exemption, preferential
interest rates and priority access to property.
24
Table 2: Legislation and policies relevant to social enterprise
Raising Incubation/ Co-working

Name Competitions Education Research Finance Description
awareness acceleration space
Supporting
policies in
education
Decree and training,
X X X
69/2008 vocational
training, medical,
culture, sports,
and environment
Implementation
of the guidelines
Decree
X X for Vietnam
96/2015
Enterprise Law
2015
Development
Project of innovation
844 - X X X X X X X and the
MOST entrepreneurship
ecosystem
Project Support for

1665 - X X X student-led
MOET start-ups
3.2.3 Key players in the social Charities such as Abilis and Thrive provide
enterprise ecosystem financial support to social enterprises. For
example, Abilis provide grants of US$10,000 to
Finance support for social enterprises US$20,000 to organisations supporting people
There are a range of funding options available for with disabilities, while Thrive lend money to SMEs
social enterprises in Vietnam, many of which are to purchase machinery at zero interest rates.
open to SMEs more widely. Crowdfunding platforms have also been developed
The SME Development Fund was established to fund social enterprises. These include ig9.vn,
to support SMEs with business plans in priority comicola.com, firstep.vn, fundingVN.com and
sectors (Decision 601/QD-TTg). The main Fundstart.vn – although transactions are still
activities of the fund3 are to receive, manage very modest. There is also the possibility of
and use financial resources to support the crowdfunding being at risk of being shut down
development of SMEs.
3.
h ttp://business.gov.vn/Tint%E1%BB%A9cv%C3%A0s%E1%BB%B1ki%E1%BB%87n/tabid/128/catid/384/
item/11653/qu%E1%BB%B9-phat-tri%E1%BB%83n-doanh-nghi%E1%BB%87p-nh%E1%BB%8F-va-v%E1%BB%ABa-
%C4%91%C6%B0%E1%BB%A3c-thanh-l%E1%BA%ADp.aspx
25
due to (i) scepticism in the community, (ii) lack number of social enterprises in Vietnam. In
of a legal framework, (iii) lack of attractive start- addition, the strong café culture in Vietnam
up ideas and (iv) focus on donations rather than has for long provided free space with access
equity investments or lending. to free Wi-Fi for young start-up entrepreneurs.
While co-working spaces are currently common
Universities in Vietnam also provide students with
in major cities, more could be done to provide
funding to run competitions, training for student
free or affordable space for peri-urban or rurally
start-ups and seed funding to pilot and scale up
based young people.
ideas related to social enterprise.
International organisations such as the British
Supporting activities, incubation and co-working
Council have been active in advocacy, social
spaces
enterprise development and social innovation
Vietnam has a number of intermediaries in the university sector since 2009. UNDP has
specialising in supporting social enterprise also played a role since 2015, aiming to tap into
through the provision of business development the thriving start-up ecosystem in Vietnam to
services, training and mentorship. Such find new market-based solutions to achieve the
organisations tend to have five to ten years SDGs. UNDP initiatives include the awarding of
of experience in this field. These include CSIP, seed funding for impact start-ups contributing
Spark, HATCH! Ventures, Evergreen Labs and to the achievement of the SDGs, and a year-long
Seed Planters. business incubation and impact acceleration
programme for impact start-ups.
Newly established incubators such as DNES,
SiHUB, sYs, BKHUP, UP and The Vuon, which have The role of the corporate sector
been supported through various government
The Corporate Social Responsibility (CSR) funds
initiatives, including the Start-up Nation
of large international and domestic corporations,
programme, have contributed to the growing
such as Unilever, Coca-Cola, Hoa Phat Group
and VinGroup, have also developed initiatives
to support social enterprises in Vietnam. For
example, Coca-Cola’s EKOCENTER project, in
operation since 2017, has built community
centres in many cities and provinces across the
country, using a community-based business model
operated by women from local communities.
The role of media
The media has played only a small role in raising

the profile of social enterprise in Vietnam. Vietnam
Television (VTV), Hanoi Television (HNTV) and
several newspapers, have done some pioneering
work, such as HNTV’s 20-minute programme each
week on social enterprise and development to
disseminate the concept of social enterprise, but
there is relatively little activity at the community or
local levels.
26
3.2.4 List of key players in the social enterprise ecosystem
There are a growing number of supporting organisations playing a role in the development of the social
enterprise ecosystem in Vietnam.
Table 3: List of key players in the social enterprise ecosystem

awareness Acceleration space
Financial institutions, investors and development organisations

Institutions and groups that seek to make positive impact by investing in enterprises that advance specific social and/or
environmental missions in addition to financial gain
Focuses on
SMEDF x
innovative SMEs
Provides grants
to improve
capacity and
Abilis Fund x
create jobs for
people with
disabilities
An interest-free
Thrive Fund x x loan programme
for SMEs
A supporting
programme
Oxfam x x x
for inclusive
businesses
Incubators, accelerators and support programmes

Initiatives and programmes that offer support, such as business development services, training and mentorship and other
resources to fledgling enterprises
Develops
programmes
British
x x x x x for creative
Council
businesses and
social enterprises
27

An incubator that
CSIP x x x x x x supports social
enterprises
A social
Spark x x x x x enterprise
accelerator
A centre for
incubation and
Evergreen investment in
x x x
Labs social impact
businesses in the
central region
Supports
programmes
IBA Vietnam x x x x
for inclusive
businesses
UNDP SDG
Innovation
Challenge
programme for
and x x x x x x x
impact start-ups
Youth
and promotion
Co:Lab
Co-working
space and social
HATCH!
x x x x x x x impact business
Ventures
incubator and
accelerator
Women’s
initiative for
WISE x x x x x x
start-ups and
entrepreneurship
28

Incubator for
SiHUB x x x x enterprises in Ho
Chi Minh City
Incubator for
DNES x x x x x x x enterprises in
Da Nang
Business Forum
VCCI x x x for sustainable
development
Higher education institutions and research institutes
Think-tank that
embedded the
social enterprise
CIEM x x x concept into
the Vietnam
Enterprise Law
2015
The first
university-
based research,
NEU CSIE x x x x x
education and
incubation centre
in Vietnam
Centre of
innovation and
FIIS x x x start-ups at the
Foreign Trade
University
29

Initiatives from Commercial enterprise sector
Development
project for small
Coca-Cola
businesses and
and x x x x
community
EKOCENTER
centres owned
by women
The first
large seafood
enterprise to
Minh Phu
x x set up clean
Fish
shrimp farming,
co-owned by
farmers
The two largest

private health
and education
VinGroup x x businesses
in Vietnam
registered as
social enterprises
Media
CSIP and VCCI’s

Green 2017 Award
Swallow x x for Business
Award Initiatives for the
Community
30

Ranking of
the top 100
sustainable
Sustainable
enterprises by
Business x x
VCCI, following
Rating
the Social
Responsibility
Award from 2005
Honours the
most influential
Forbes Viet people of the
x
Nam year, many of
whom are social
entrepreneurs
Weekly CSR
VTV1 x programme in
2018
Source: CSIE-UNDP (2018).
31
3.3 EXISTING RESEARCH ON SOCIAL ENTERPRISE

IN VIETNAM
To date there has been relatively little research on social enterprise in Vietnam.
The first report on social enterprise was conducted by the British Council, CSIP and Spark in
2011. The objective of this report was to collect information on social enterprises operating at
the time, and to set up a database, or a Vietnam Social Business Directory. According to this
report, at the end of 2010, there were 167 social enterprises operating across Vietnam.
In 2012, joint research by CIEM, the British Council and Spark provided an overview of the
concept, context and policies with regard to social enterprise. This research concluded that
Vietnam already had a number of businesses that could be regarded as social enterprises.
However, the research also recommended that in order to develop the social enterprise sector
in Vietnam, such organisations should be given greater recognition officially. As a result, in 2014,
the Vietnam National Assembly passed the Law on Enterprise with formal, legal recognition of
social enterprise.
A study conducted by the British Council, CIEM and the National Economics University in 2016
explored existing policies relating to the development of social enterprises and successful case
studies of social enterprise in Vietnam. The study aimed to:
• Increase awareness of and respect for social enterprises
• Mobilise wider participation of the private sector, social organisations, associations and
social enterprises in addressing social and environmental issues in an effective and
sustainable manner
• Encourage reform and creativity in dealing with social and environmental issues
• Inspire the State’s thinking in terms of planning and enforcement of social policies to ensure
more practical, effective and sustainable policies
• Serve as an educational curriculum of business administration programmes for business

people at universities and institutes.
32
4. SURVEY
FINDINGS
33
4.0 SOCIAL ENTERPRISE SURVEY SAMPLE

This section describes the findings from the survey of social enterprises across Vietnam,
conducted as part of this research. A total of 142 organisations participated in the survey. Of
these, 129 organisations met the criteria of being social enterprises for the purposes of this study.
4.1 SOCIAL ENTERPRISE LEADERSHIP

4.1.1 Age
The average leader of a social enterprise in Vietnam is relatively young, with the largest group
of social enterprise leaders (58 per cent) aged between 25 and 44, while 38 per cent are
between 45 and 64. Only four per cent are over 65.
According to an international business survey4, 36 per cent of Vietnamese micro, small and
medium enterprises are founded and led by entrepreneurs who are under 35, which suggests
that the age profile of Vietnamese social enterprises may be broadly in line with the wider SME
community.
Figure 1: Age of social enterprise leaders

Age range of leader
16–24 | 0%
25–44 | 58.1%
45–64 | 38%
65+ | 3.9%
4.1.2 Gender
Social enterprises in Vietnam have a healthy gender balance. Female leadership accounts for 48
per cent of organisation, just slightly less than male leadership (52 per cent). In contrast, just 37
per cent of the wider SME sector reports having female leadership5.
4.
Asia Pacific Foundation of Canada 2017, Survey of entrepreneur and MSMEs in Vietnam: building the capacity of
MSMEs through technology and innovation (p. 8).
5.
Asia Pacific Foundation of Canada 2017, Survey of entrepreneur and SMEs in Vietnam: building the capacity of SMEs
through technology and innovation (p. 8).
34
4.1.3 Education attainment
The majority of social enterprises surveyed have leaders with a high level of education. A total
of 70 per cent of respondents said their leaders have a tertiary qualification, with 42 per cent
having a bachelor’s degree and 28 per cent being postgraduates. Of the rest, 21 per cent
have graduated from high-school, and one per cent from upper-secondary school. The general
education level of social enterprise leaders is a little lower than the heads of SMEs, of whom 78
per cent have a bachelor’s degree or higher.
Education
Figure 2: Education level level of social entrepreneurs
of social entrepreneurs
Other | 1%
High school | 21%
Graduate | 42%
Post graduate | 28%
4.2 YEARS OF OPERATION

There is a new wave of start-up social enterprises in Vietnam, with 30 per cent of respondents
saying they have only been operating since 2015, which may be related to the recent
enthusiasm around start-ups and the formalisation of social enterprise legislation under the
Enterprise Law.
A total of 31 per cent of the social enterprises surveyed have been in operation since 2008, and
around 25 per cent have been established for over ten years. Some began operations during
the 1990s, and one as early as 1978.
Year of operation
Figure 3: Years of operation
3 years (2015) | 30%
5 years (2013) | 14%
10 years (2008) | 31%
Over 10 years (before 2008) | 25%
It’s worth noting that among the newest social enterprises – those established since 2015 – a
clear majority (74 per cent) of leaders are relatively young, aged between 25 and 44.
From these results, we can see two waves of social entreprise development in Vietnam: before
2013 as social enteprises emerge from NGOs with trading activities, and after 2013, when
the social enterprise model was introduced and formalised in Vietnam, further fuelled by the
government’s encouragement for start-ups and innvovation.
35
4.3 GEOGRAPHY OF OPERATIONS AND REACH

Social enterpises in Vietnam are often based in urban areas, namely Hanoi (30 per cent) and
Ho Chi Minh City (21 per cent). This is similar to the general pattern of businesses in major cities.
Just under half of all social enterprises are located in rural regions, with almost a third based
in Vietnam’s northern provinces, compared to only eight and nine per cent in the southern and
central provinces respectively.
Figure 4: Geography of operations
Northern
provinces
32%
Hanoi
30%
Central
provinces
9%
Southern
provinces
8%
Ho Chi Minh City

21%
36
A total of 30 per cent of all social enterprises in Vietnam are operating in national markets,
and 22 per cent are operating in international markets. Of the 12 per cent operating within
their local neighbourhood or district, most are rural co-operatives working to address issues
within their local community, for example, to create sustainable livelihoods for indigenous
minority-ethnic people who may be relatives and neighbours.
Figure 5: Geographical reach

Geoghraphical reach
International | 21.7%
National | 30.2%
Multi-provincal region | 17.1%
Province/City | 19.4%
Neighbouring district area | 11.6%
Co-operatives in Vietnam
Co-operatives are businesses owned by preserving traditional plantations, or
their members and which bring people breeding specialised cattle.
together to meet their common needs and
Despite the benefits which co-operatives
aspirations through a jointly-owned and
can generate, the role and development
democratically-controlled business model.
of co-operatives in Vietnam may have
They aim to generate sustainable incomes in
been underestimated. Until now, there has
which profits may be distributed to members.
been no agreement on the total number of
They, therefore, share some characteristics
co-operatives nationwide. According to the
with social enterprises and may, in fact, be
Bureau for Co-operatives in the Ministry of
considered as one form of social enterprise.
Planning and Investment, there are 19,000
In Vietnam, co-operatives have been to 21,000 registered co-operatives, of which
established for decades. Today, there are still nearly 13,000 are paying tax, indicating
thousands of co-operatives in the country, that they are in operation. Others may be
mostly in rural areas. unprofitable or do not have a tax code.
Co-operatives in remote areas or areas Although the institutional framework for

with economic challenges can create new co-operatives has been improved by the
jobs and so provide sustainable livelihoods Law on Co-operatives (No 23/2012/QH13)
for vulnerable groups. They may also aim replacing the old law of 2003, some argue
to directly solve social and environmental that the state administration of the sector
problems, such as processing rubbish, has not been operating effectively or
37
has not been appropriately supported or to the significance of the sector and its
monitored. The model has sometimes had a role in boosting the economy. For instance,
poor reputation for effectiveness in the past. Resolution 32 of the National Assembly
Co-operatives are not always recognised included a target of 15,000 cooperatives
as distinct to conventional for-profit working efficiently by 2020, within the
businesses. Furthermore, the double pricing framework of new rural development
scheme (giving special prices for members) and agricultural restructuring6. Another
of co-operatives can cause accounting government resolution (No 55/NQ-CP/2018
problems. Another obstacle for co-operatives on 14/5/2018) was issued to develop a
appears to be the low level of management new decree for ‘co-operative groups’, which
skills among co-operative leaders, of whom are smaller in scope than fully fledged
only two per cent have a graduate degree. co-operatives, but which can provide the
foundation for co-operatives.
Despite this, Vietnamese co-operatives are
playing an active role in creating jobs for Not all co-operatives may necessarily be
members; buying and delivering goods and recognised as social enterprises or meet our
services to member households; acting as defining criteria in practice. However, many
secondary suppliers or retailers in value of them do and may be considered as part of
chains; and representing members in the social enterprise family in Vietnam and
negotiations with larger corporations. Clearly, beyond.
co-operatives can potentially fill gaps in local
(Source: Interview and discussion with the
value chains, and make connections between
officers of the Bureau for Cooperatives,
suppliers and buyers.
Ministry of Planning and Investment, on 15
Encouragingly, policymakers in Vietnam are January 2019)
starting to give greater acknowledgement
6. Website of the Ministry of Agriculture and Rural Development, Minister Nguyen Xuan Cuong: New model of
cooperative will be determinant to upgrade Vietnamese agriculture, posted on 12/4/2018, viewed 11/3/2019.
https://www.mard.gov.vn/Pages/bo-truong-nguyen-xuan-cuong-hop-tac-xa-kieu-moi-se-la-nhan-to-quyet-dinh-dua-
nen-nong-nghiep--.aspx
38
4.4 LEGAL STATUS OF SOCIAL ENTERPRISES

Just 15 per cent of respondents are registered as social enterprises under the Enterprise Law
2014. Given that, at present, 88 social enterprises have registered under this law, the survey
reached nearly a quarter of this population. Of these, over 50 per cent of social enterprises in
Vietnam have adopted a conventional private sector structure for their business, with 35 per
cent registered as a limited liability companies, 22 per cent as a joint/stock companies and 13
are sole proprietorships or informal businesses.
A total of 17 per cent are co-operatives, seven per cent are NGOs and six per cent are schools,
private providers of public services or without formal organisational status. In addition, very few
(only two per cent) operate as subsidiaries of other organisations, which means 98 per cent are
working independently.
Figure 6: Legal status of social enterprises

Legal status
Limited liability company 35%
Partnership 0%
Co-operative 17%
Joint/stock company 22%
Sole proprietorship/ Household business 13%
NGO 7%
Other 6%
39
4.5 AREA OF FOCUS (SECTOR)

4.5.1 Objectives
Amongst survey respondents the most commonly reported objective was creating employment
opportunities (60 per cent), followed by improving a particular community (55 per cent) and
supporting vulnerable people (42 per cent). Other common themes included protecting the
environment/saving energy (32 per cent), providing access to quality products/services (31 per
cent) and promoting societal cohesion (30 per cent). It’s worth noting that respondents had the
option of choosing multiple options.
Areas of focus
Figure 7: Social enterprises’ objectives
Creating employment opportunities

(including for members)
| 60%
Improving a particular community | 55%
Supporting vulnerable people | 42%
Protecting the environment/ saving energy | 32%
Providing access to quality products/ services | 31%
Promoting societal inclusion | 30%
Promoting another model for work | 23%
Fighting inequalities | 20%
Supporting women and girls/ gender equality | 20%
Improving health and wellbeing | 16%
Promoting education and literacy | 16%
Supporting vulnerable children and young people | 12%
Addressing financial exclusion | 12%
Supporting other social enterprises | 10%
Providing affordable housing | 0%
Others | 7%
40
4.5.2 Sectors
Social enterprises tend to work in sectors that are labour intensive, with a relatively low level
of skills, innovation and technology. The most common sector in which Vietnamese social
enterprises operate is agriculture, with 35 per cent of respondents working in this area. This is
followed by hospitality (nine per cent), education (nine per cent) and the environment (seven
per cent).
Sectors
Figure 8: Social enterprise sector
Agriculture 35%
Others 13%
Hospitality 9%
Education 9%
Environment 7%
Childcare 5%
Employment and skills 4%
Retail 4%
Business support/ consultancy 3%
Creative industries (web, design, print) 2%
Health care 2%
Financial support and services 2%
Social care 2%
Transportation 2%
Culture and leisure 1%
Workspace 0%
Housing 0%
41
4.6 SOCIAL IMPACT

On average, each social enterprise in Vietnam is working to support nearly 2,000 people, mostly
from local communities.
When survey repsondents were asked about their primary beneficiaries, 27 per cent of
respondents reported that their beneficiaries were individuals with a physical disability, 27 per
cent reported that their beneficiaries were long-term unemployed, and 25 per cent said that
their beneficiaries were individuals with a learning or mental disability, including children with
autism and older people.
Figure 9: Types of direct beneficiaries supported by social enterprises

Groups to benefit directly from the organisation’s core business activities
Individuals with a physical disablity | 27%
Long-term unemployed | 27%
Individuals with a learning or mental disability | 25%
Older people | 24%
Homeless/ coming out of homeless | 8%
Domestic violence victims | 6%
People coming out of offending | 3%
Young people with delinquency behaviour | 2%
Trafficking victims | 2%
Drug addicts | 1%
Others | 43%
More than half of the social enterprises surveyed report that they do not measure their social
and environmental impact. While 41 per cent do, only six per cent have an impact assessment
that is externally validated.
42
4.7 JOB CREATION FROM SOCIAL ENTERPRISES

Job creation is the most common objective of social enterprises in Vietnam, and is an objective
for 60 per cent of respondents. On average, each social enterprise in Vietnam employs 42
full-time employees, with a median of 15. While most social enterprises are micro and small
firms7, there are a few medium-sized enterprises, mostly involved in handicraft production.
4.8 PROFITS AND TURNOVER

Social enterprises in Vietnam are profitable businesses. Encouragingly, more than 60 per cent
report that they are achieved a profit or surplus last year, with six per cent breaking even
and only ten per cent making a loss. Notably, among the social enterprises operating in the
agricultural sector, 78 per cent have made a profit. Hospitality is also another profitable sector,
while education, environment and childcare seem to be less profitable.
Figure 10: Profit/surplus of social enterprises

Make a profit/surplus?
Make a profit/surplus? | 64.1%
Broke even | 6.2%
Made a loss | 10.3%
Do not know/ Cannot share | 6.0%
No answer | 1.4%
In terms of turnover, 40 per cent of the respondent social enterprises are turning over less than
VND one billion. While 19 per cent report a turnover of between VND one and five billion, and 23
per cent report a turnover of between VND five and 25 billion. Only 12 per cent report turnovers
in excess of VND 25 billion.
7. According to Decree 39/2018/ND-CP providing guidelines for the implementation of the Law on supporting small
and medium enterprises, micro firms are those having less than ten full-time employees and turnover of less than
VND three billion (for sectors of agriculture, industry); VND ten billion (services); small firms: less than 100 full-time
employees and turnover of less than VND 50 billion (agriculture, industry); less than 50 full-time employees and
turnover of less than VND 100 billion (services).
43
Figure 11: Turnover of social enterprises

Make a profit/surplus?
No answer | 1%
Do not know/ Cannot share | 5%
>300,000,000,000 | 1%
100,000,000,000 - 300,000,000,000 | 2%
50,000,000,000 - 100,000,000,000 | 4%
25,000,000,000 - 50,000,000,000 | 5%
5,000,000,000 - 25,000,000,000 | 23%
1,000,000,000 - 5,000,000,000 | 19%
<1,000,000,000 | 40%
44
4.9 GROWTH PLANS AND BARRIERS

4.9.1 Growth plans
Almost all social enterprises in Vietnam have plans for scaling up. When asked about their
business plans for expansion over the next year, up to 91 per cent plan to grow. Growth
strategies are most often based on attracting new clients and devleoping new products and
services.
Figure 12: Social enterprises’ growth plans

Growth plans
Attracting new customers or clients | 75%
Developing new products and services | 62%
Increasing sales with existing customers | 59%
Attracting investment or finance to expand | 48%
Using information technology to be more efficient | 41%
Expanding into new geographic areas | 41%
Expanding into new market segments | 31%
Merging with another organisation | 4%

Others (improving the efficiency, supporting
more beneficiaries, creating more jobs) | 9%
45
4.9.2 Barriers to growth
Vietnamese social enterprises rate recruitment of skillful employees and financial management
as the top challenges they face. A total of 40 per cent of respondents say that the recruitment
of staff or volunteers is a major barrier, and 35 per cent cite a lack of business skills. In addition,
35% cite cash flow as a major barrier to growth. Respondents were able to select multiple
responses.
Figure 13: Barriers to growth
Barriers to growth
Recruiting staff or volunteers | 40%
Cash flow | 35%
Shortage of business skills | 35%
Obtaining other forms of finance | 30%
Lack of access to business support and advice | 29%
Government regulations and administrative burdens | 22%
Availability of suitable premises or workspace | 16%
Lack of awareness of SEs in Vietnam | 11%
Obtaining grants | 10%
Poor commission and procurement of public services | 9%
Others | 23%
46
4.10 FINANCE SOURCES AND CONSTRAINTS

4.10.1 Sources of funding and finance
In relation to respondents’ main sources of extenral funding and finance, the most common
sources are donations (24 per cent), equity investment (11 per cent), grants (nine per cent)
and in-kind resources (seven per cent). Only a very small number of social enterprises borrow
money through loans (four per cent), take on mortgages (two per cent) or use overdrafts (one
per cent). Again, multiple responses were allowed.
Figure 14: Sources of funding and finance of social enterprises

Sources of funding and finance
Grant | 9%
Equity | 11%
In-kind | 7%
Donation | 24%
Mortgage | 2%
Loan | 4%
Over-draft | 1%
Others | 16%
No answer | 16%
47
4.10.2 Financing constraints
The survey sought to further understand the financial challenges facing social enterprises.
Respodents were asked to select the three main financial challenges faced by their organisation.
Just over half of the respondents (54 per cent) report that they struggle with access to
investors and the limited scope of investments which are available to them (44 per cent).
They also report that approval procedures and terms are inappropriate (34 per cent). Having
guarantors/collateral (26 per cent), insufficient knowledge of the social enterprise sector (25
per cent), and lenders’ demand for returns or fees (24 per cent) are also problematic.
Figure 15: Financing constraints of social enterprises
Financing constraints
Access to investors | 54%
Investments available are too small | 44%

Approval procedures and terms are too
onerous or difficult to understand and satisfy | 34%
Having guarantors/collaterals | 26%
Lack of understanding of social enterprise | 25%
Lender’s profit margin/ fees | 24%
Investments available are too large | 10%
Currency value/ inflation/ interest rates | 10%
Short loan repayment period | 9%
No answers | 25%
48
4.10.3 Other forms of support
Support is important to social enterprises in Vietnam, with 74 per cent of respondents saying
they have benefited from support from intermediaries. Just 18 per cent say they haven’t
received support, and eight per cent didn’t answer. This shows the important role that support
can play, with intermediaries and the likes of incubation centres in Vietnam supporting the
development of the social enterprises.
Haveprogrammes
Figure 16: Support you benefited
thatfrom
haveany intermediary
benefited organisations?
social enterprises
Yes 74.4%
Never 17.8%
No answer 7.8%
49
The most popular forms of support are training (70 per cent), financing (49 per cent) and
mentoring (40 per cent).
Figure 17: Form of support

What kind of supports?
Mentoring | 40%
Incubation | 21%
Training | 70%
Financing | 49%
Department of Labour, Invalids and Social Affairs, Hanoi

The Department of Labour was not involved in any consultation on the registration of social
enterprises or supporting policies led by the Department of Planning and Investment. However,
all social enterprises in Vietnam can benefit from the existing framework of favourable policies
for organisations employing war-invalids, people with disabilities, people who have made (or
whose families have made) war-time contributions to the country, and families with economic
difficulties.
Incentives include tax exemptions or reductions, and support for the purchase of production
inputs. The Department of Labour also delivers job matching, provision of labour market
information and other labour policies, such as unemployment allowance through 13 centres in
all districts of Hanoi.
In 2018, 231 enterprises received support from these centres, of which 42 enterprises recruited
people with disabilities. Most of those firms are SMEs, but they may also fall under the umbrella
term of social enterprises. The Department also provides welfare support for children and
elderly people in difficult circumstances.
Source: Interview and discussion with the Department of Labour, Invalids and Social Affairs, Hanoi;
15/01/2019
50
CONCLUSIONS
51
The social enterprise sector in Vietnam is operate locally, but have national and international
diverse, vibrant and growing. There is a new ambitions. A total of 30 per cent of all social
wave of start-up social enterprises in Vietnam, enterprises in Vietnam are operating in national
and 35 per cent of survey respondents have only markets, and 22 per cent are operating in
been operating since 2015, mainly led by young international markets.
people. While many social enterprises are small,
Social enterprises are optimistic. Almost all
with 40 per cent turning over less than VND one
social enterprises in Vietnam have plans to grow
billion, over a third have turnovers higher than
through developing and launching new products
VND five billion.
or services.
Social enterprises in Vietnam are profitable
But social enterprises do face barriers.
businesses. Encouragingly, more than 60 per cent
Vietnamese social enterprises rate recruitment
report achieving a profit or surplus last year, while
of skilful employees and financial management
six per cent broke even and only ten per cent
as the top challenges they face. When it comes
made a loss. These are real businesses, which rely
to accessing finance, access to investors and
on trading activities as the main source of income.
limited scope of investment available are the
Social enterprises take diverse legal forms. main barriers. Only a very small number of social
Some are registered as social enterprises while enterprises borrow money through loans, with
others have adopted a conventional private sector grants and equity as more popular alternatives.
structure, co-operative or other form.
Support is important to social enterprises in
Most social enterprises in Vietnam are on Vietnam. A total 74 per cent of social enterprises
a mission to create jobs. They are working in surveyed say they have benefited from support
diverse sectors from agriculture to hospitality, from intermediaries. The support ecosystem
education, the environment and beyond. has grown with new intermediary organisations,
universities, donors, academia, investors and
Social enterprises in Vietnam are supporting
incubators all playing a role.
disadvantaged people. They commonly
work with disabled people and the long term The government has developed a
unemployed, for instance. comprehensive policy framework to support
SMEs in general and social enterprises, in
Social enterprises are nurturing spaces for
particular. There are also policies to encourage
women and young people to take on leadership
businesses to give greater consideration to their
roles. The leaders of social enterprises in Vietnam
social impact, such as who they employ. But the
are relatively young with the largest group of
implementation of these policies, and access to
social enterprise leaders (58 per cent) aged
and the take-up among social enterprises, still
between 25 and 44 years old. Nearly half of social
have some way to go.
enterprise leaders are women, compared to 37
per cent of SMEs more widely. The following section provides recommendations
on how the social enterprise ecosystem can be
Social enterprises operate across Vietnam
further developed to enable social enterprises
and beyond. Around half are based in Hanoi
in Vietnam to contribute further to the country’s
and Ho Chi Minh City, but nearly half are in rural
social and economic development.
regions. Social enterprises in Vietnam don’t just
52
RECOMMENDATIONS
Social enterprises should be supported to make better use of existing policies, programmes,
funding and incentives available to them. This is likely to require greater understanding of the
support ecosystem, investment in capacity, knowledge and skills.
Stakeholders, such as intermediaries, incubators, donors and the media, should do even more
to spread awareness and understanding of social enterprise in Vietnam. Networks, platforms,
workshops, seminars, trade fairs, forums and websites can showcase the potential of social
enterprise, business models, achievements and social impact.
Higher education institutions, universities and research institutions should be more active in
spreading an understanding of social enterprise, nurturing the next generation of future social
entrepreneurs. Grants, competitions and prizes can also encourage social enterprise start-ups of.
Social enterprises could pay more attention to how they can demonstrate their social value,
while funders and investors could ease their demands in this respect, given the challenge for
social enterprises in proving both their economic and social impact.
The government should continue its support for social enterprise, and should consider
how social enterprises could be given more preferential treatment in procurement and
commissioning. The legal framework could also be improved with respect to the implementation
of current regulations of the Enterprise Law. This should also include:
i) Consideration of the tax treatment of donations to social enterprise, which may discourage
some social enterprises from registering under the Enterprise Law
ii) How the reinvestment of profits is treated in the tax code
iii) How social enterprises’ commitment to their social mission is overseen by the government.
The government should also consider how understanding and awareness of social enterprise can
be enhanced in local authorities and across diverse government departments.
53
BIBLIOGRAPHY
Asia Pacific Foundation of Canada (APFC) 2017, Survey of entrepreneur and MSMEs in Vietnam:
building the capacity of MSMEs through technology and innovation.
British Council, CSIP and Spark (2011), Survey Report on Social Enterprises in Vietnam in 2011
(Vietnamese version).
British Council, CIEM and NEU (2016), Vietnam Social Enterprise Case book, Youth Publishing
House, Hanoi.
British Council, SEUK (2016), State of Social Enterprise in Bangladesh, Ghana, India and Pakistan.
Bosma, T et al. 2016, Global Entrepreneurship Monitor 2015 to 2016: Special report on Social
entrepreneurship
CIEM, British Council, and CSIP (2012), Social Enterprise in Vietnam: Concept, Context, and
Policies, Research Report.
CSIE and UNDP (2018), Fostering the Growth of the Social Impact Business Sector in Vietnam.
Research Report.
Grant Thornton 2019, Women in business: building a blueprint for action, March 2019
General Statistics Office (GSO) 2017, Statistical Year Book 2017.
Pham et al. (2016), Social Enterprise in Vietnam, ICSEM Working paper 31, Centre for Economic
Development Studies, VNU University of Economics and Business, Vietnam
PWC – VCCI (2017), Doing business in Vietnam: a reference guide for entering the Vietnam
market, July 2017.
54
ANNEX 1
SURVEY QUESTIONS
SOCIAL ENTERPRISES QUESTIONNAIRE
(Only for research purpose of the State of Social Enterprise in Vietnam – a regional cooperative project
between the CIEM – SEUK – British Council)
I. Basic information about the organisation
1. What is the name of your organisation? … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … …
2. In what year did your organisation begin operating? … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … …
3. Where in Vietnam does your organisation have its headquarters? [Pls specify the detailed
address]… … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … … …
II. Activities and Characteristics
4. What is the widest geographic area your organisation operates across: [single response]
¨ Neighbourhood ¨ Provincial ¨ Regional
¨ National ¨ International
5. How would you describe your organisation? [multiple responses allowed]
¨ Social enterprise ¨ For-profit enterprise ¨ Co-operative
¨ Non-profit organization ¨ Other [specify] ………….
6. Have you heard of the concept of “social enterprise”?
¨ Yes ¨ No
7. Please tell us which of the following characteristics your organisation meets [multiple responses
allowed/ tick all that apply]
¨ Formally constituted ¨ Democratically controlled/ participatory

governance
¨ Trading (selling goods and services for money) ¨ Rules on limits to profit distribution
¨ Defined community/ social / environmental ¨ Independent of the state
purpose / benefit
55
8. In what legal form(s) is your organisation registered?
¨ Limited liability company ¨ Joint stock company
¨ Partnership ¨ Sole proprietorship/ Household enterprise
¨ Co-operative ¨ NGO
¨ Other (specify)………………………..
Have you registered as “social enterprise” according to The Enterprise Law 2014? ¨ Yes ¨ No
9. Is your organisation a subsidiary of another organisation? ¨ Yes ¨ No
10. What are your organisation’s overall objectives? [Multiple response: select all that are applicable]
¨ Improving a particular community ¨ Creating employment opportunities (including

for members)
¨ Supporting vulnerable people ¨ Improving health and wellbeing
¨ Promoting education and literacy ¨ Addressing financial exclusion
¨ Protecting the environment/saving energy ¨ Supporting women and girls / gender equality
¨ Supporting vulnerable children and young ¨ Providing affordable housing
people
¨ Supporting other social enterprises ¨ Providing access to quality products/services
¨ Fighting inequalities ¨ Promoting societal inclusion
¨ Promoting another model for work ¨ Other (Specify) ………………..
11. What is the main sector you operate in? / What is the principal trading activity of your organisation?
[single response only]
¨ Housing ¨ Retail
¨ Workspace ¨ Business support/consultancy
¨ Childcare ¨ Culture and leisure
¨ Social care ¨ Health care
¨ Hospitality (cafes, restaurants) ¨ Employment and skills
¨ Creative industries (Web, design, print) ¨ Creative industries (Web, design, print)
¨ Financial support and services ¨ Education
¨ Environmental – recycling, reuse, awareness ¨ Transport
¨ Other (Specify)………………….. ¨ Agriculture
56
III. Economic data
12. What was your organisation’s annual turnover in the previous financial year?… … … … … … … … … … … … … … … … … … (VND)
¨ <1,000,000,000 VND ¨ 1,000,000,000 – 5,000,000,000 VND
¨ 5,000,000,000 – 25,000,000,000 VND ¨ 25,000,000,000 – 50,000,000,000 VND
¨ 50,000,000,000 –100,000,000,000 VND ¨ 100,000,000,000 – 300,000,000,000 VND
¨ > 300,000,000,000 VND ¨ Do not know/ Cannot say
13. In the last year, did you make a profit or surplus? [single response]
¨ Made a profit/surplus ¨ Made a loss
¨ Broke even ¨ Donot know/ Cannot say
14. How is your profit/surplus used? [multiple responses allowed]
¨ Reinvestment in the mission ¨ distribution to shareholders ¨ Distribution to employees
¨ Distribution to members ¨ Other (specify)………..
IV. Sources of funding
15. What forms of finance and funding have you received (in the last year or since you started operating)?
[multiple response]
¨ Grant ¨ Donation ¨ Loan
¨ Equity ¨ Mortgage ¨ Overdraft
¨ In-kind resources ¨ Other (specify)………..
16. What proportion of your total income came from grants last financial year?
V. Employment
17. How many paid full time employees (40+ hours per week) do you currently employ?… … … … … … … … … … … … … … … … … …
18. How many paid part time employees (39 or fewer hours per week) do you currently employ? … … … … … … … … …
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
VI. Community/ social and environmental goals
19. Does your organisation place emphasis on: [single response]
¨ profit first ¨ collective benefit/social/environmental mission first ¨ both jointly
57
20. Do you consider any of the following groups to benefit directly from your organisation’s core
business activities? [multiple response/ tick all that apply]
¨ Long-term unemployed ¨ Individuals with a physical disability
¨ Individuals with a learning or mental disability ¨ Homeless / coming out of homelessness
¨ People coming out of offending ¨ Young people with delinquency behaviour
¨ Drug addicts ¨ Trafficking victims
¨ Older people ¨ Domestic violence victims
¨ Other (specify)………..
21. How many people do you estimate you have supported in total in the last 12 months? … … … … … … … … … … … … … … … …
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
22. Do you measure your social and environmental impact? [single response] .
¨ Yes, we measure it ourselves ¨ Yes, it is externally validated ¨ No
VII. Leadership
23. What is the highest level of education the person most responsible for managing your
organisationhas? [single response]
¨ Post-graduate ¨ Graduate
¨ High School ¨ Other (specify)………..
24. What is the gender of the person currently in charge of your organisation? ¨ Male ¨ Female
25. In what age range is the person currently in charge of the organisation?
¨ 16–24 ¨ 25–44
¨ 45–64 ¨ 65+
26. Is the person currently in charge of your organisation from a vulnerable groupas noted in
Question 20? ¨ Yes ¨ No
VIII. Future planning/expectations
27. Do you have plan for business expansion over the next year? ..
¨ Yes ¨ No ¨ Don’t Know [If Yes]
58
28. How does your organisation plan on achieving growth over the next year? [multiple responses
allowed]
¨ Increasing sales with existing customers ¨ Expanding into new market segments
¨ Expanding into new geographic areas ¨ Developing new products and services
¨ Attracting new customers or clients ¨ Using information technology to be more

efficient
¨ Attracting investment or finance to expand ¨ Merging with another organisation
¨ Winning business as part of a consortium ¨ None of these (please specify)
29. What are the major barriers which your organisation faces? [top 3 only]
¨ Obtaining grants ¨ Obtaining other forms of finance
¨ Recruiting staff or volunteers ¨ Shortage of business skills
¨ Cash flow ¨ Lack of awareness of social enterprise in

Vietnam
¨ Lack of access to business support and advice ¨ Availability of suitable premises or workspace
¨ Government regulations and administrative ¨ Poor commissioning and procurement of public
burdens services
¨ Other (specify)………..
30. What are your organisation’s top 3 constraints to financing?
¨ Lender’s profit margin/ fees ¨ Having guarantors/ collateral
¨ Investments available are too small ¨ Investment available are too large
¨ Lack of understanding of social enterprise ¨ Short loan repayment period

¨ Approval procedures and terms are too ¨ Access to investors
onerous or difficult to understand and satisfy
¨ Currency value/ inflation/ interest rates
31. Have you benefited from any supporting program of intermediary organisations(mentoring, incubation,
training….)?
¨ Yes ¨ No
If yes, which kind of support was it? [multiple responses allowed]
¨ Mentoring ¨ Incubation
¨ Training ¨ Financing
59
IX. Finally
32. Are you happy for this information to be shared publicly? .

¨ Yes ¨ No
33. Contact details - please provide contact details even if you do not want to share them publicly.
…………………………………………………………………………………………………………………………………..…………..…………..…………..…………..…………............
…………………………………………………………………………………………………………………………………..…………..…………..…………..…………..…………............
…………………………………………………………………………………………………………………………………..…………..…………..…………..…………..…………............
34. If you are happy to be contacted again by any of the partners on this project, please indicate here
…………………………………………………………………………………………………………………………………..…………..…………..…………..…………..…………............
…………………………………………………………………………………………………………………………………..…………..…………..…………..…………..…………............
…………………………………………………………………………………………………………………………………..…………..…………..…………..…………..…………............
60
ANNEX 2
SOCIAL ENTERPRISE
IN HIGHER EDUCATION
IN VIETNAM 8
Social enterprise was first introduced to

universities in 2012, through workshops in Three areas of activity
universities in Hanoi led by the British Council in • Social enterprise and social innovation
Vietnam. The workshop at the National Economics research: organise annual conference,
University (NEU) began a long-term partnership publish country report, chair a scholars
between the British Council and the NEU as a key network, support PhD students,
player in promoting social enterprise in research build strong research team, operate
and education in higher education institutions imapvietnam.org (interactive digital social
(HEIs) in the country. enterrise and social innovation map)
• Social enterprise and social innovation
CURRENT CONTEXT education: Training of trainers, training
of youth, develop training materials, first
We can identify three key observations on the role
social enterprise master’s programme in
of HEIs with regard to social enterprise in Vietnam:
the region
1. The concept has evolved from social • Social enterprise and social innovation
enterprise to broader approaches incubation: operate Impact Space
to social entrepreneurship, social incubator, co/-organise social start-

up competition, provide direct social
innovation and impact start-ups
enterprise support, co-run Buy Social
Vietnam with partners.
Center for Social Innovation and Key partners

Entrepreneurship (CSIE), National • British Council
Economics University • Institute of Social Innovation and Impact,
Univeristy of Northampton
• Established in February 2017 with • UNDP Vietnam
technical support from the British Council • Programme 1665, Ministry of Education
in Vietnam and Training
• Its vision is to become a regional hub on • Trinity Center for Social Innovation, Trinity
social enterpirse and social innovation College Dublin
8. This section was written by Associate Prof Dr Truong Thi Nam Thang, NEU – CSIE.
61
The concept of social enterprise was first

introduced in universities in 2012 during
Social enterprise related competitions
management and business ethics courses
avaialble for Vietnamese students
delivered by teachers who had developed
an interest in social enterprise as a result of • Vietnam Social Innovation Challenge by
participation in the introductory workshops Enactus FTU
and research launch events mentioned above. • Vietnam Youth for Social Innovation
Subsequently, knowledge has developed Challenge by CSIE and the British Council
more rapidly thanks to the Start-up Nation • Dynamics by Hochiminh University of
campaign initiated by the government in 2016, Economics
in which universities were seen as the most • Global Social Venture Competition by UC
appropriate platform for fostering innovation and Berkeley Hass’ School of Business
entrepreneurship. Innovation and technology • Social Business Competition by HEC
start-ups have become more central to a range of Montreal
ministries. Social innovation is perceived as a way • SV-Startup by the Ministry of Educatin and
of solving social problems, and social enterprise Training
is now often understood as one form of social
innovation.
conferences at the NEU have become regional
Over the last few years, conferences and research annual academic events, and field trips or
papers began to discuss social innovation and international training of trainers workshops have
social enterprise in parallel. The idea of ‘social been organised by the British Council with the NEU
impact business’ has been recently introduced and lecturers of other universities, to build the
by CSIE and UNDP in a report launched in capacity of teaching faculties.
September 2017. But in terms of teaching, only
In 2015, the NEU co-founded the Vietnam Social
social enterprise and social entrepreneurship are
Enterprise Scholars Network with other key
embedded as established concepts, while social
stakeholders in the social enterprise ecosystem.
innovation and ‘impact start-ups’ appear only in
In February 2017, with the support of the British
a research context. However, many observers
Council, the NEU set up CSIE as the first research
suggest that ‘social innovation’ may be a keyword
and incubation centre in the country. Since 2015,
in the coming years in the university context.
the CSIE has played a leading role in parallel with
the British Council and new partners such as Irish
2. There are champions but few
Aid and UNDP Vietnam, building the ecosystem
adopters in the university context
of support for social enterprise and social
In 2012, the British Council organised the entrepreneurship in the country, both in general
first social enterprise training of trainers of and in universities more specifically.
30 country-wide university lecturers and
Other universities are not engaged as deeply with
intermediaries, and the first academic conference
social enterprise or social entrepreneurship. The
on embedding social enterprise into teaching and
engagement with social enterprise in universities
research in universities was organised at the NEU.
is often still rather more at an individual level.
In 2015, the British Council signed a memorandum However, we see social enterprise in classes and
of understanding with the NEU to lead the incubation centres at Foreign Trade University,
movement of integrating social enterprise into Nguyen Tat Thanh University, Thai Nguyen
teaching at HEIs in Vietnam. Annual international University and Hanoi University.
62
Between 2009 and 2011, SIFE, now called Enactus, Future Perspectives
was active in Vietnam with a network of about
In 2016, Vietnam’s government introduced the
ten student clubs for social entrepreneurship in
Start-up Nation concept, in which Vietnam is
universities in Vietnam. A few of these still exist,
encouraged to play a role in the so-called Fourth
such as Enactus NEU, Enactus FTU and Enactus
Industrial Revolution. Accordingly, the government
RMIT, while some have changed their name or
is investing heavily in start-ups and ecosystem
operating model, such as Dynamics of Ho Chi
building.
Minh University of Economics. Enactus Foreign
Trade University has hosted the Vietnam Social In the university context, at the end of 2017, the
Innovation Challenge since 2012, as an annual Prime Minister issued Decision 1665/QĐ-TTg to
competition for social enterprise ideas. approve the development of entrepreneurship
in all universities and colleges in Vietnam.
The CSIE also plays a key role in supporting young
With advocacy from the CSIE and the British
scholars to research social enterprise/social
Council, the Ministry of Education and Training
innovation in the country. Around ten PhD students
has acknowledged social entrepreneurship and
have submitted their theses on social enterprise in
social start-ups as one of three entrepreneurship
Vietnam, and further ten candidates are working
choices that universities should promote besides
on theirs. This growing pool of researchers on
generic SME start-up and technology start-up.
social enterprise/social innovation is helping to
spread these concepts in international and local In October 2018, the British Council in
publications and raising awareness about social Vietnam signed a three-year memorandum of
enterprise/social innovation as an emerging understanding with the Ministry of Education
research and teaching area. and Training to embed social enterprise into
universities in Vietnam. By the end of 2018, 200
university lecturers had joined the training of
3. The introduction of social enterprise
trainers programme (see Chart 1).
in Enterprise Law 2014 has framed
the perception of social enterprise ENHANCE (Strengthening National Research and
among academia and provides a Innovation Capacities in Vietnam) is an Erasmus-
basis for the role of social enterprise funded project for 2019, funded by the European
in higher education
The legal definition of social enterprise gives it a

British Council and Ministry of Education
legitimacy in research and teaching at universities.
and Training Agreement
Before 2012, the concept attracted little attention.
(2018-2020)
However, since 2015, the concept has been more
embedded as a way of doing business in most of • Fostering social enterprise and social
universities and disciplines, not only in business innovation workshops and training in
schools but in law, community engagement, universities
social work, business ethics, management, CSR • Raising awareness for at least 30 per cent
and entrepreneurship in teaching and textbooks. of university students
Faculty lecturers have become more confident at • Training 200 trainers through the Active
introducing social enterprise/social innovation into Citizens Social Enterprise programme
their teaching and research and pursuing their • Initiate and maintain a network of
PhD theses on social enterprise/social innovation. educators and researchers
63
Commission, which will set up a centre to support In conclusion, the role of universities in the
social innovation in universities in Vietnam. social enterprise ecosystem in Vietnam includes
teaching, research, incubation, awareness raising,
UNDP has a global programme called Youth
policy advocacy and ecosystem building. Such an
Co:Lab, which promotes social entrepreneurship
active role of universities has been strengthened
and ‘impact start-ups’ amongst young people. In
through cooperation with research institutes and
Vietnam, UNDP has worked with the CSIE as one of
supporting intermediaries, to form an enabling
its key partners in developing social innovation in
ecosystem for the social enterprise sector to
the country, since 2018. UNDP is also developing
thrive. Its significance and effectiveness should
a new initiative – the SDG Innovation Accelerator
continue to result in and be reflected in the
Lab – as another method for developing
enhanced capacity of human resources in social
technology solutions to help achieve the SDGs.
enterprises for years to come.
Chart 1. SE Embeddment in universities in Vietnam
Incubation or promoting social entrepreneurship among studehts 24%
Embed into current courses such as business ethics, management 20%

Training, raising awareness for students by extra curriculum activities 20%
Organise workshop, conference where SE/SI is one of the topics 17%
Organise workshop, conference on SE/SI topic only 9%
A course name SE/SI 6%
A training material, textbook, on SE/SI 4%
64
British Council
20 Thuy Khue, Hanoi, Vietnam
BritishCouncilVietnam
vnBritish
britishcouncilvn
www.britishcouncil.vn
© British Council 2019

The United Kingdom’s international organisation for cultural relations and educational opportunities.
A registered charity: 209131 (England and Wales) SC037733 (Scotland). ©BC-220318/

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SOCIAL ENTERPRISE

Hanoi, March 2019

Dr Nguyen Dinh Cung

ABOUT THE UNITED

We would like to acknowledge the valuable feedback provided by:

ABOUT THE BRITISH COUNCIL 6

ABOUT THE UNITED NATIONS ECONOMIC AND SOCIAL COMMISSION

ABOUT CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT 8

2.2 Research Overview 17

2.3 Classifying Social Enterprises 18

2.4 Estimating the number of social enterprises in Vietnam 18

3. OVERVIEW: COUNTRY CONTEXT AND EXISTING RESEARCH ON SOCIAL ENTERPRISE 20

3.1 Overall Country Policy 21

3.2 Policy Review in Relation to Social Enterprise 22

3.2.1 Social Enterprise in Vietnam 22

3.2.2 Legislation and policies relevant to social enterprise 23

3.2.3 Key players in the social enterprise ecosystem 25

3.2.4 List of key players in the social enterprise ecosystem 27

3.3 Existing research on social enterprise in vietnam 31

4.0 Social Enterprise Survey sample 34

4.1 Social Enterprise Leadership 34

4.1.3 Education attainment 35

4.2 Years of Operation 35

4.3 Geography of Operations and Reach 36

4.4 Legal Status of Social Enterprises 38

4.5 Area of Focus (Sector) 40

4.6 Social Impact 42

4.7 Job Creation from Social Enterprises 43

4.8 Profits and turnover 43

4.9 Growth Plans and Barriers 45

4.9.1 Growth plans 45

4.9.2 Barriers to growth 46

4.10 Finance sources and constraints 47

4.10.1 Sources of funding and finance 47

4.10.2 Financing constraints 48

4.10.3 Other forms of support 49

ANNEX 1 – SURVEY QUESTIONS 55

ANNEX 2 – SOCIAL ENTERPRISE IN HIGHER EDUCATION IN VIETNAM 61

CIEM Central Institute for Economic Management

CSIP Centre for Social Initiatives Promotion

CSR Corporate social responsibility

NEU National Economics University

NGO Non-governmental organisation

SDGs Sustainable Development Goals

SMEs Small and Medium Enterprises

UNDP United Nation Development Programme

VCCI Vietnam Chamber of Commerce and Industry

This study was commissioned by the British

This research is based on quantitative information

We have found that the social enterprise sector

2.1 PURPOSE than 300 organisations, complied from the existing

2.3 CLASSIFYING SOCIAL 2.4 ESTIMATING THE

Therefore, from our initial total of 142

- SMEs account for 98.1% of the

SMEs 508,083 1.1%1 5,589 - 1.1% is the prevalence rate of

- GSO Economic Census 2017

Cooperatives 12,536 100% 12,536 - Co-operatives can be considered

- CIEM, CSIP and BC (2012); CSIE and

Total number 19,125

• Policies for co-operatives specified in Decree

• For co-operatives engaging in certain fields,

• For enterprises investing in some selected

• For businesses in which people with disabilities

• Increase awareness of and respect for social enterprises

• Serve as an educational curriculum of business administration programmes for business