Conference on strengthening the partnership with international non-governmental organizations

 On November 21, 2014, Vietnam Union of Friendship Organizations (VUFO) held a conference on strengthening the partnership with international non-governmental organizations (INGO) in Ho Chi Minh City.

Mr Phan Anh Son - member of the VUFO Standing Committee cum Chief of People's Aid Coordinating Committee (PACCOM) and Mr Nguyen Ngoc Hung - Vice Chief of PACCOM co-chaired the meeting with the participation of representatives of focal points of INGO issues in localities, leaders of some southern provinces’ Union of Friendship Organizations, INGOs, Consulate Generals, donors and businesses.

The conference aimed at reviewing the activities of INGOs in the past 10 months of 2014, the implementation of the National Programme on aids mobilization in 2014, advantages and difficulties in mobilizing aids in 2014 and directions for 2015, discussing INGO’s aid trends and measures to promote and strengthen aid mobilzation in the new situation ...

An overview of the INGO activities in 2014 was presented at the conference. More than 500 organizations maintained activities in 63 provinces and cities of Vietnam with total aid value of 2014 estimated at 250-300 million USD. The cooperation with INGOs has recently entered a new phase. The authorities of Vietnam have actively supported the activities of INGOs in terms of legislation and resources. Some localities have worked closely with the Central agencies and INGOs in the receipt, management and use of aid. However, a number of difficulties have still remained, such as: for INGOs, lack of law understanding, working without registration and out of registered areas, small-scale or scattering activities, high administrative costs, insufficient reporting; for Vietnamese agencies, the gap between regulations and implementation in reality, inconsistent procedures among different localities, inactive in both aid mobilization and information sharing with INGOs and  limitation of human resources.

Several measures to implement the National Program of INGO aid mobilization for the period of 2013 - 2017 were put forward as follows: simplifying a number of related legal documents, providing more specific guidance for localities, supporting localities in developing programs, projects calling for INGO aid, building a set of guidance for INGOs, establishing INGO data center, enhancing the supervision to improve the effectiveness of aid use, improving human resources, strengthening central and local organizational system related to INGO work.

At the conference, the participants also shared information about INGO aid trends in the new situation, advantages and disadvantages during implementing programs and projects in localities as well as solutions for the coming time. Mr. Marko Lovrekovic - Co-director of INGO Data Center (the Center ) said the Center had monthly meetings with PACCOM to exchange information about INGO issues and recommended PACCOM, related ministries and localities to support and invite more donors for consultation and dialogue. INGO data should be soon completed and put into use.

To conclude, Mr. Phan Anh Son emphasized it was the first conference of various sectors, PACCOM would try to solve the problems of administrative procedures, share information for related parties. He also would like to welcome more new members in the southern provinces and hoped that all INGOs would work closely with PACCOM to provide more effective support for localities in need.

Source: MOFA

Foreign NGOs provide $300mn in aid for Vietnam in 2014

Foreign non-governmental organizations (NGOs) have provided Vietnam with an estimated US$300 million in aid in the year to date, according to the Vietnam Union of Friendship Organizations (VUFO).

Five hundred international NGOs are operating in Vietnam with 42 more coming and 10 leaving, a representative from the People’s Aid Coordinating Committee (PACCOM) said at a ceremony held in Hanoi on Friday to review and recognize the contributions of the NGOs.

“Though the global economy has yet to show any sign of recovery, foreign NGOs have offered impressive financial support to Vietnam this year,” Don Tuan Phong, vice president of the VUFO, said at the event.

Phong added that the aid has focused on dealing with social issues, healthcare, education improvement, socio-economic development, and environmental protection.

Meanwhile, the PACCOM has vowed to further enhance information sharing with the international NGOs operating in Vietnam and to seek sponsorship for them.

During the event, the VUFO presented 33 foreign NGOs and one individual with certificates of merit in recognition of their significant contributions to poverty reduction and sustainable development in the country.

Marko Lovrekovic, co-managing director of the VUFO-NGO Resource Center, told Tuoi Tre News that the quality of programs run by NGOs is more important than the number of NGOs in Vietnam.
“I think Vietnam does not need to increase the number of NGOs. I think they need to help NGOs better coordinate and implement their projects. The biggest issues now are about legislation and policies, and the legal environment,” Lovrekovic said.

Source: Tuoi Tre

Approved! Social enterprise receives legal status in Vietnam

Hailed as a “crucial milestone”, the legislation is expected to vastly enhance social enterprises’ ability to operate and thrive.

On 26 November, 86% of Vietnamese MPs voted in favour of revisions to Vietnam’s Enterprise Law which for the first time provides a legal definition of social enterprise and grants social enterprises a number of specific rights.

The amended law defines a social enterprise as a business whose main aim is to address a social or environmental issue and which re-invests a minimum of 51% of its annual profits towards its social or environmental mission.

It states that government will “encourage, support and promote the development of social enterprises.” For instance, social enterprises will enjoy “preferential conditions or be considered for special treatment” in the granting of licenses and certificates.

Moreover, the law authorises them to obtain funding, sponsorship and investment from Vietnamese and foreign individuals, enterprises and NGOs to cover their operational and administration costs.
In addition, it enjoins government to provide detailed business registration procedures and other measures to promote the development of social enterprises.

Pham Kieu Oanh, founder and CEO of Centre for Social Initiatives Promotion (CSIP), says that the law is, “a crucial milestone that highlights the recognition by government and society of the contributions social enterprises are making in Vietnam.”

She adds that the law, “creates new opportunities for social enterprises to conduct policy advocacy and supports the development of a comprehensive ecosystem for SEs. It also makes it easier for them to secure capital and form partnerships with the public, private and third sectors.”

British Council Vietnam has played an important supportive role in securing this outcome. Over the past six years, the British Council and its partners have provided capacity-building activity for social enterprises, awareness raising of social enterprise and social investment, and support for intermediary organisations. In the last two years, a key area of focus has been advocacy at the policy level and the introduction of social enterprise concepts to key government institutions.

Ian Robinson, deputy director of British Council Vietnam said, “Knowing the extent to which social enterprise contributes to the UK economy and has successfully weathered the recent financial crisis, the British Council was keen to share this experience in Vietnam.”

He added: “Working with an influential government think tank, the Central Institute of Economic Management (CIEM), the Ministry of Planning and Investment and key offices of the National Assembly, as well as local and national media, we built relationships and worked hard to ensure these key institutions understood the value social enterprise can bring to an economy.”

Robinson explains that after the British Council organised workshops, a study tour to the UK and meetings with UK experts, CIEM took the decision to promote the inclusion of social enterprise in the revision of the Enterprise Law, as they saw huge potential for applying UK best practice in social enterprise as a viable model to tackle social and environmental challenges in Vietnam.

Further support from the British Council ensured key individuals visited other ASEAN (Association of Southeast Asian Nations) countries to apply their understanding to the ASEAN context and a delegation was also supported to take part in the Social Enterprise World Forum in Seoul.

The legislation was backed by deputy prime minister Vu Duc Dam and vice minister of planning and investment, Dang Huy Dong.

Nguyen Minh Thao, deputy director of the Department for Competitiveness and Business Environment at CIEM said, “Vietnamese social enterprises have emerged and developed steadily during the past years. They have contributed many business innovations to achieving social and community objectives. Their innovations should be nurtured, recognised and promoted. The approval of social enterprise articles on enterprise law affirms the concern, recognition and appreciation from society to social enterprises.”

Next steps include preparation for a decree to guide the implementation of the law and awareness-raising in the provinces, which will take time and effort.

According to Ian Robinson, “The British Council doesn’t intend to pursue that on its own, but is instead working to identify Vietnamese and international partners with which we can work to help turn the new law into reality.”

Source: http://www.theguardian.com/british-council-partner-zone/2014/dec/16/approved-social-enterprise-receives-legal-status-in-vietnam

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