The Văn Đức Agricultural Production, Trading and Service Cooperative, located in Bát Tràng Commune, spans more than 200 hectares and supplies between 70 and 75 tonnes of vegetables to the market each day. VNA/VNS Photo Vũ Sinh

HÀ NỘI — The International Labour Organization (ILO) has released a summary research report on the Social and Solidarity Economy (SSE) in Việt Nam, highlighting the need for a coherent legal framework to enable the sector’s strong and sustainable development.

The report forms part of the project Strengthening the Social and Solidarity Economy in Asia and was developed with research collaboration and financial support from multiple international partners. It aims to provide a comprehensive overview of the role played by economic models grounded in cooperation, solidarity and sustainable development within the national economy.

According to the ILO, Việt Nam possesses a number of favourable foundations for the development of the SSE sector. These include a long-standing cooperative movement, social enterprises, cooperative groups, people’s credit funds and various forms of community-based self-organisation. Together, these entities contribute to job creation and improved livelihoods for vulnerable groups, particularly women, ethnic minorities and rural populations. They also promote broader social values such as gender equality, community cohesion and inclusive economic growth.

The report emphasises that SSE should be regarded as an essential component in achieving the Sustainable Development Goals at both national and local levels, especially as Việt Nam pursues equitable growth and comprehensive social development.

In the context of economic restructuring, digital transformation and climate-related challenges, SSE is seen as offering practical, community-driven solutions that combine economic viability with social impact.

The ILO notes that SSE actors in Việt Nam have been expanding in both number and scope. Participation now spans rural and urban areas and includes workers from both the formal and informal economies. This expansion reflects the significant potential of SSE to promote sustainable employment, generate stable incomes and support poverty reduction efforts, particularly in disadvantaged communities.

However, one of the report’s most important findings is that although SSE has been recognised in various policy documents, Việt Nam still lacks a coherent legal framework governing the entire sector. The ILO underscores that policy recognition is an important first step but is not sufficient to create an enabling legal and institutional environment for SSE to thrive in a coherent and sustainable manner.

At present, SSE entities in Việt Nam are regulated under a range of different laws and regulations, including the Law on Cooperatives, the Law on Enterprises, legislation on credit institutions and rules governing associations and social organisations. This fragmented regulatory landscape means that SSE has not yet been comprehensively defined within the national legal system. As a result, organisations often face difficulties in accessing finance, receiving technical support, being properly reflected in official statistics and benefiting from coordinated policy planning. The absence of a coherent framework also makes it harder to assess clearly the sector’s scale, contribution and overall role in the economy.

Beyond legal fragmentation, the report identifies several major challenges constraining the development of SSE in Việt Nam.

First, the lack of a comprehensive legal framework leaves many SSE models operating without clear legal status or tailored regulatory provisions. This uncertainty limits their ability to mobilise resources, expand operations and compete effectively in the marketplace.

Second, access to finance and credit remains limited. Many SSE organisations, particularly those in rural areas or small community-based groups, struggle to secure formal funding. Commercial banks and financial institutions often perceive these models as high risk, which restricts their access to loans and appropriate financial products.

Third, gaps in statistics and data measurement pose significant obstacles. The absence of a standardised and comprehensive statistical system for SSE makes it difficult to collect reliable data and measure the sector’s contributions. This, in turn, affects evidence-based policymaking, impact evaluation and long-term monitoring of development outcomes.

Fourth, the report highlights the need for stronger inter-agency coordination. Because SSE is inherently cross-sectoral, it requires collaboration among multiple government bodies. Currently, coordination mechanisms remain limited, leading to overlapping mandates or inconsistencies in policy implementation.

In light of these challenges, the ILO puts forward several strategic recommendations to promote decent work and sustainable development through SSE in Việt Nam.

Foremost among them is the development of a clear and comprehensive legal framework for SSE. The report also calls for the design of appropriate financial instruments, including dedicated support funds, preferential credit schemes and stronger cooperation with development banks and non-bank financial institutions.

In addition, the ILO recommends establishing a standardised statistical system capable of accurately measuring the size, structure, employment contribution and performance of the SSE sector.

Finally, the report stresses the importance of building effective inter-ministerial coordination mechanisms and fostering dialogue between the Government, SSE organisations and social partners. Regular policy dialogues, forums and knowledge-sharing platforms would help ensure that policies are coherent, inclusive and responsive to the realities of the sector, particularly in relation to job creation, workers’ rights and sustainable development. — VNS