Social innovation is emerging in Vietnam, with 167 social enterprises operating across 25 provinces. Common sectors include vocational training, handicraft production, and healthcare. Social enterprises provide jobs for over 8,500 people, including nearly 3,000 with special needs, and directly improve the lives of over 377,000 people through poverty reduction, education, and human welfare programs. Challenges facing social enterprises include balancing social and profit objectives, high staff turnover, lack of legal recognition from the government, and limited access to capital and funding. Case studies highlight successful social enterprises like Mai Vietnamese Handicrafts and KOTO that provide employment and training.

1. Social innovation in Vietnam

3. 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)

5. Types of organization 50 17 55 25 20 29.9 10.2 32.9 15.0 12.0 0 10 20 30 40 50 60 Company Cooperatives NGOs Associations Others Type of enterprise Number/Percentage Number Percentage

8. Capital structure 20.3% 5.3% 45.5% 28.8% Owner equity Donated fund Profit reinvestment Others

19. KOTO – Graduation Ceremony

20. Know One Teach One Presenter information NGUYEN THI THU HA Deputy General Manager KOTO Training Centre Email: hantt.hn@koto.com.au