HCMC – The U.S. Agency for International Development (USAID) and Vietnam’s Ministry of Planning and Investment yesterday, January 18, launched a new project to develop the competitiveness of small and growing businesses (SGBs) in Vietnam.
The five-year project, with a total budget of US$36 million, was first announced during U.S. Vice President Kamala Harris’ visit to Vietnam in August last year. The project will be implemented in cooperation with the ministry’s Agency for Enterprise Development.
According to USAID, SGBs are key contributors to Vietnam’s economic growth, accounting for 40% of GDP and 60% of total employment in 2018.
However, these businesses face barriers and constraints impeding their continued and sustained growth, including new technologies, networking, market linkages, and lack of access to management training and skills-building opportunities.
This project will encourage broad-based, inclusive economic growth through improved business practices, innovation and technology adoption, policy reforms and increased market access. It will also 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.
Further, the project aims to support 5,000 SGBs, 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 Vietnam” brands in regional and global markets.
Addressing the event, USAID Mission Director Ann Marie Yastishock said that this 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 equal opportunities for all.