The United States Agency for International Development (USAID) and Vietnam’s Ministry of Planning and Investment (MPI) have just launched a new project focusing on building the competitiveness of Vietnam’s private sector.
|Launching event on improving Vietnam's private sector competitiveness on January 18 |
The 5-year project was first announced during US Vice President Kamala Harris’ visit to Vietnam in August. The project will be implemented in cooperation with the MPI’s Agency for Enterprise Development and funded with up to $36 million.
Small and growing businesses are key contributors to Vietnam’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 impeding their continued and sustained growth, including new technologies, networking, market links, and lack of access to management training and skill-building opportunities.
USAID’s new project will encourage broad and inclusive economic growth through improved business practices, innovation, and technology adoption, as well as policy reform and increased market access. The project will foster locally-led and 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.
“The new project is USAID’s flagship effort to help Vietnam harness its entrepreneurial spirit in facilitating a dynamic, Vietnam-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.
Yastishock lauded the 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 the MPI to achieve the project’s ambitious targets.
Over its lifespan, the project aims to support 5,000 small and growing businesses, with 240 businesses successfully participating in domestic, regional, and international markets, and 60 pioneering ones creating value-added products and positioning their “Made by Vietnam” brands in regional and global markets.