Social innovation in Vietnam

• An overview of social innovation in

Vietnam

• Conditions and circumstances for social

innovation

• Leaders of social innovation

• Case studies of social innovation

Social innovation in Vietnam

Development Trend

Emergence of new social enterprises (Tohe, LifeArt, Safe Living, KOTO, Mekong Quilts)

Community Organizations adopt innovative, market

oriented approaches for deepening social impact and

sustainability (Morning Star Center, MCD, CECEM..)

Corporate that pursue shared value – generating profit

that comes from meeting basic social needs (Mai Vietnamese

Handicrafts)

• 167 social enterprises in 25 provinces

(Hanoi: 40%, Hochiminh City: 14%)

• Working sector: Vocational training & job placement (56%)

Handicraft production (38%)

Health care services (6%)

Statistics

Types of organization

50

17

55

25 20

29.9

10.2

32.9

15.0 12.0

0

10

20

30

40

50

60

Company Cooperatives NGOs Associations Others

Type of enterprise

Num

ber/

Perc

enta

ge

Number Percentage

• Job creation: 8588 people, 2962 people with

special circumstances (HIV/AIDS, disability, post drug

treatment...)

• Directly improve the lives of 377,678 people:

– Poverty reduction (70%)

– Education and awareness raising (%)

– Human’s welbeing and development (%)

Key social achievements

• Revenue (2010): 255 billion dong

(US$80,000/SE)

• Profit (2010): US$3.5 mil (US$21,000/SE)

• Total capital as at 31/12/2010: US$43 mil

(4 times bigger than the registered capital)

Key economic achievements

Capital structure

20.3%

5.3%

45.5%

28.8%

Owner equity Donated fund Profit reinvestment Others

SWOT – Social enterprises

S: Leadership

Reputation

O: Support from

Government and

Community

W: Lack of capital,

equipment and land

T: Competition from

normal business

Challenges and difficulties

How to balance between profit target and social

objectives

High staff turnover due to low pay rates

The Government has not recognized social

enterprises as a special type of business

There is no tax incentive

Interest rates for bank loans are very high while

there is limited access to government’s funds.

Mai Vietnamese Handicrafts

• Is an income generating and educational

project for poor and disadvantaged

women.

• Provides employment and training as well

as promoting self-reliance amongst

disadvantaged families and ethnic

minorities in Southern Vietnam.

MCD – EcoLife

• ECOLIFE is an enterprise operating in

establishing and operating community-based

eco-tourism model with the aim to creat more

opportunity for the people in coastal areas to

earn their living which is environmental friendly,

making contribution to increasing living standard

and sustainable protection of coastal

environment.

Libraries for clans in rural areas

• The organization’s mission is to improve

knowledge and information, at the same

time create reading culture and habit

among rural people

• Since from 2007, 86 clan libraries have

been set up, providing more

than 5,000 books.

Morning Star Center

• Established in 1995, Morning Star is a

center for consulting on early intervention

and care of children with disability,

especially intellectual disability.

• The Center is expanding its operation into

other provinces outside HN.

KOTO – Know One Teach One

A 24 months vocational training program for street and

disadvantaged youths aged from 16 to 22 years old

• A 24 month training program which has been accredited by Box Hill

Institute (Australia). After graduating, trainees will receive an

internationally recognized certificates.

KOTO Training Program

Front of House Cookery

• FOH or cookery

• English

• Life skill

• Computer

• Spot activities

• Health check and

vaccination

KOTO Training Program

KOTO – Key achievements

• Nearly 350 graduates

• Two training centers are fully operating in HN and HCMC with approximately 200 trainees

• One training restaurant in HN since 1999 and a new restaurant in SG has just been opened

KOTO – Graduation Ceremony

Know One Teach One

Presenter information

NGUYEN THI THU HA

Deputy General Manager

KOTO Training Centre

Email: hantt.hn@koto.com.au