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 CompanyCooperatives NGOs AssociationsOthers Type of enterprise Number/Percentage 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 equityDonated fundProfit reinvestmentOthers

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