A new US$36 million project focused on building the competitiveness of Việt Nam’s small and growing businesses was launched on Tuesday, thanks to the US Agency for International Development (USAID) and Việt Nam’s Ministry of Planning and Investment (MPI). 

The five-year project was first announced during US Vice President Kamala Harris’ visit to Việt Nam in August 2021. The project will be implemented in co-operation with MPI’s Agency for Enterprise Development.

Small and growing businesses are key contributors to Việt Nam’s economic growth, accounting for 40 per cent of GDP and 60 per cent of total employment in 2018. However, these businesses face barriers and constraints that impede their continued and sustained growth, including new technologies, networking, market linkages and lack of access to management training and skills-building opportunities.

USAID’s new Improving Private Sector Competitiveness project will encourage broad-based, inclusive economic growth through improved business practices, innovation and technology adoption, policy reform, and increased market access. This project will foster locally-led, locally-owned solutions that leverage the strength of the Vietnamese talent pool, including the promotion of “Made by Vietnam” products, services, and technologies, as well as solutions that contribute to improving the business enabling environment.

“This new project is USAID’s flagship effort to help Việt Nam harness its entrepreneurial spirit in facilitating a dynamic, Việt Nam-led transformation of the private sector into one that can compete globally, and provide more equal opportunity for all,” said USAID Mission Director Ann Marie Yastishock at the launch event. Mission Director Yastishock lauded MPI for its long-running partnership with USAID. She called on key stakeholders, from policymakers to the private sector, to “work hand-in-hand” with USAID and MPI to achieve the project’s ambitious targets.

Over the life of the project, the Improving Private Sector Competitiveness project aims to support 5,000 small and growing businesses, with 240 businesses successfully participating in domestic, regional and international markets, and 60 pioneering these businesses successfully creating value-added products and positioning their “Made by Việt Nam” brands in regional and global markets. — VNS