Social Enterprises in Vietnam

Abstract

Social enterprises (SE) present a paradigm where market focuses are employed to produce public or social benefit. During the last decade, the number of social enterprise organizations operating in the social and healthcare sectors has increased. Included in this category include industrialized countries such as the United Kingdom, Spain, and Korea, along with emerging countries such as Pakistan, Ghana, and Vietnam. According to some estimates, the social and healthcare sector accounts for 20 to 30 percent of the total social enterprise. Over the last thirty years, the SE sector in Vietnam has grown dramatically, providing social services to communities and individuals who are experiencing socioeconomic marginalization. Following the government’s recognition of social entrepreneurship, which first flourished in a legal vacuum, the sector now looks to be thriving after finally being recognized by the government. However, as the industry evolves, it is confronted with additional obstacles. After reaching middle-income-country (MIC) status, foreign development assistance for Vietnam has become more constrained, and the emphasis is now on building capacity and ensuring long-term sustainability of the country. Challenges and prospects for future development of Vietnamese SEs are examined after interviewing representatives from a variety of SEs and support groups. It was concluded that there is still room for growth in terms of both the sector’s size and the effect it can achieve. By examining the impact of a shifting worldwide development environment on emerging government policy, fresh insights can be gained into the beliefs and perceptions of practitioners in the SE sector in Vietnam.