Social innovation in Vietnam. An overview of social innovation in Vietnam Conditions and...

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 VietnamSocial innovation in Vietnam

Development TrendDevelopment 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%)

StatisticsStatistics

Types of organizationTypes of organization

50

17

55

2520

29.9

10.2

32.9

15.012.0

0

10

20

30

40

50

60

Company Cooperatives NGOs Associations Others

Type of enterprise

Num

ber/

Per

cent

age

NumberPercentage

• 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 achievementsKey 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 achievementsKey economic achievements

Capital Capital structurestructure

20.3%5.3%

45.5%

28.8%

Owner equity Donated fund Profit reinvestment Others

SWOT – Social enterprisesSWOT – 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 difficultiesChallenges and difficulties

How to balance between profit target and social objectives

High staff turnover due to low pay ratesThe Government has not recognized social

enterprises as a special type of business There is no tax incentiveInterest rates for bank loans are very high while

there is limited access to government’s funds.

Mai Vietnamese HandicraftsMai 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 – EcoLifeMCD – 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 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 CenterMorning 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 OneKOTO – 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 ProgramKOTO Training Program

Front of House Cookery

• FOH or cookery

• English

• Life skill

• Computer

• Spot activities

• Health check and

vaccination

KOTO Training ProgramKOTO Training Program

KOTO – Key achievementsKOTO – 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 CeremonyKOTO – Graduation Ceremony

Know One Teach OneKnow One Teach One

Presenter information

NGUYEN THI THU HADeputy General Manager

KOTO Training CentreEmail: hantt.hn@koto.com.au