SIBs display their products at the SIB Connect 2024 on Wednesday morning. — VNS Photo Ly Ly Cao

HÀ NỘI — The SIB Connect 2024 event brought together leaders, investors and entrepreneurs to celebrate the strides being made in Việt Nam’s social impact business ecosystem on Wednesday.

Organised by the United Nations Development Programme (UNDP), Global Affairs Canada and the Ministry of Investment and Planning (MIP), the event highlighted the critical role of SIBs in fostering sustainable and inclusive growth.

SIB Connect emphasised the importance of sustained collaboration among Government agencies, private enterprises and international organisations.

The event showcased the potential of SIBs to drive Việt Nam’s progress toward achieving the Sustainable Development Goals (SDGs), while navigating challenges such as financial access and regulatory hurdles.

SIB Connect 2024 also marked the conclusion of the Supporting the Eco-system of Social Impact Businesses in Vietnam in Response to COVID-19 (ISEE-COVID) project, a transformative initiative, that began as a response to the economic challenges of the pandemic.

Over the past three years, the project has supported over 400 social impact businesses, with 60 per cent of SIBs managed by female leaders, creating nearly 15,000 jobs for marginalised groups, including women, ethnic minorities and people with disabilities.

“This project has transformed a loose network of socially minded businesses into a robust ecosystem,” said Ramla Khalidi, resident representative of UNDP in Việt Nam.

She emphasised that the initiative has enabled businesses to expand into new markets, with fund raising of over US$25 million.

“These achievements embody what social businesses stand for: a commitment to profit with purpose,” Khalidi said.

UNDP reaffirmed its commitment to supporting Việt Nam’s SIB ecosystem through initiatives targeting young entrepreneurs, businesses led by vulnerable groups, and those adopting circular economy practices.

“Together, we can weave a future where the SIB ecosystem thrives, driving Việt Nam toward sustainable and inclusive growth,” Khalidi said.

Connecting enterprises and opportunities

The event served as a dynamic platform for SIBs to connect with each other, large enterprises, intermediaries and funds.

Collaborative projects, such as joint gift sets and tourism programmes created by ten SIBs, demonstrated the tangible impact of these partnerships.

In 2024 alone, 30 SIBs successfully sold their products through other SIB-led outlets, while six companies initiated collaborations with pioneering firms.

However, the event also highlighted challenges faced by SIBs, particularly in accessing capital.

According to Nguyễn Hoài Châu, Senior Programme Officer at the Embassy of Canada, while there is ample interest from investors, many SIBs struggle to meet the stringent requirements for funding or hesitate to weaken ownership by sharing equity.

Innovative financial models have emerged to support SIBs, particularly in the agricultural sector.

The Rabo Foundation, a Dutch agricultural bank, which has been active in Việt Nam for over a decade, offers collateral-free loans tailored to the needs of enterprises like SIBs.

"Our loans are designed to enhance business growth, create jobs and promote sustainable farming practices," said Nguyễn Thị Thu Hà, a representative of the Foundation.

Nevertheless, she acknowledged that compliance with stringent EU regulations has extended loan processing times, posing an additional challenge for SIBs looking for capital. — VNS