VN06 Promoting Greenovation through SMEs and start-ups in Viet Nam

At a Glance

Strategic Outcomes SO1 Reduced GHG emission, SO2 Creation of green jobs
Start Date Q1  Jan 1 2019
End Date q1 Dec 31 2020
Funding Source Core
Actual Budget (USD) 239,632
Budget Percentage 87%
Actual Expenditure (USD) 207,714.28
Status Complete
GGGI Share (USD) 239,632.83
Poverty and Gender Policy Markers poverty, gender
Name of Client (Lead/Prime implementer if GGGI is part of a consortium) Small and Medium Enterprise Development Fund (SMEDF)
Participating Organization (Funding/donor)
Name of consortium members, if any
Thematic Area
  • Cross Cutting
GGGI Project Code : VN06
Project Manager and Staff +
Jason Lee

Deputy Director and Head of Emerging Economies Asia & Viet Nam Country Representative

Tanja Leimgruber

Program Lead – Digital Transformation For Green Growth

Huong Ta

Senior Program Officer

Project context

Recognizing the need to address climate change, the government of Viet Nam (GoV) has set GHG emission reduction targets and policies to enhance resilience in its NDC and national green growth strategy. However, it is estimated that Viet Nam requires USD 30 billion by 2030 to fully implement the NDC and green growth strategy. This finance will not only come from public funding but also and mostly come from the private sector.  

Project objectives and description

The project accordingly aims at enabling public and private resources for green growth implementation focusing on three main outputs:

  1.  Enhancing capacity for Small and Medium Enterprise Development Fund (SMEDF) and local bank staff on green credit and how to apply the Green Credit Handbook into their day-to-day operation;
  2.  Designing a grant-award mechanism for SMEDF and developing an acceleration program to apply the grant-award mechanism to innovative green start-ups  

GGGI fosters private investment by providing capacity building to green SMEs and promoting green innovative start-ups, by partnering with SMEDF. GGGI shared the international experience on promoting green start-ups through grant mechanisms, prepared pitching day concepts to bring green innovative ideas to investors.  The project aligns with IO1. ‘Strengthened national, sub-national and local green growth planning, financing and institutional frameworks’, IO2. ‘Increased green growth investment flows which enable partner governments to implement green growth policies’ and, IO3. ‘Improved multi-directional knowledge sharing and learning to empower local and external agents necessary to drive green growth processes in partner governments.’ 

Type of services provided, and results achieved

Impact: Vietnamese green SMEs and start-ups are fostered, adding green value to the economy 

Outcome: N/A 

Project Outputs completed in 2019 

i. Green Growth Policies: N/A 

ii.Green Investments:   

  • NFV and an output that aim to create enabling environmentSMEDF is a public fund (approx. USD 88m) that aims to support the development of SMEs in Viet Nam through financial instruments such as interest subsidies. As such, SMEDF can be considered as a NFV which GGGI has been supporting to prioritize green, innovative and women-led business proposals over BAU loan proposals. Specifically, GGGI supported the development of criteria to provide clear guidance to SMEs to develop green business proposals as well as to SMEDF to appraise such loan proposals. In medium to long term, SMEDF will be able to increase their proportion of green loans out of their loan portfolio. In addition, GGGI will support SMEDF to develop a grant award mechanism for green startups and to run an incubation program. These activities will provide selected startups with additional capital and enable them to enhance capacity for further funding. 

iii. Capacity Building and Knowledge Products: N/A