US, Vietnam launch program to spur private sector’s growth

The U.S. Mission to Vietnam and the Vietnamese Ministry of Planning and Investment (MPI) announced Tuesday a program to promote the country’s private sector-driven sustainable growth.

The new initiative, which the mission carries out through the US Agency for International Development (USAID), promotes socially-conscious business behavior, known as environmental, social, and governance (ESG) standards. It targets small and growing businesses.

Michael Schiffer, USAID assistant administrator for Asia, and MPI Vice Minister Tran Quoc Phuong announced the initiative at a USAID-supported business forum.

“This new initiative will help small businesses improve their competitiveness and innovation, overcome constraints, and chart a path for sustainable growth and job creation and to continue to contribute to Vietnam’s prosperity,” said Schiffer.

Approximately, small and growing businesses account for more than 90% of Vietnam’s private sector, employ more than half of the workforce, and contribute around 40% of the nation’s GDP.

The U.S. Mission says the new initiative will by 2025 deliver ESG technical assistance packages to 300 businesses, of which 10 will receive additional assistance to pilot, implement or scale their innovative ESG business concepts.

The new program is part of USAID’s $36 million Improving Private Sector Competitiveness project, which removes policy, market, and firm-level constraints on the growth of small and growing businesses.

Next year, Vietnam and the U.S. will celebrate the 10-year anniversary of their Comprehensive Partnership. This April, USAID and MPI expanded their joint efforts to strengthen private sector competitiveness.