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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: [email protected]