The United States Agency for International Development (USAID) and Vietnam’s Ministry of Planning and Investment (MPI) on Wednesday virtually signed a US$42 million agreement to advance Vietnam’s economic competitiveness, through strengthening private sector competitiveness, innovation and startup ecosystems, and human capital.  

Vietnam and the US are strengthening economic ties.

USAID technical assistance activities under this agreement will enhance the capacity of Vietnamese small and growing businesses, including those led by vulnerable populations, by facilitating access to competitiveness-enhancing technology, business management skills, and capital, the US embassy in Hanoi said in a statement.

The agreement will also foster greater entrepreneurship; enable deeper linkages of Vietnamese startups to corporations, investment capital, and other supporting organizations in the international innovation and startup ecosystems; and strengthen high-quality human capital needed for a robust knowledge-based economy.  

“This agreement reflects the United States’ continued commitment to support Vietnam’s efforts to become a more open, innovative, and inclusive economy,” said US Ambassador to Vietnam Daniel J. Kritenbrink. “Through close collaboration with the Government of Vietnam, we can ensure that USAID’s development assistance will meet our two countries’ mutual vision for a prosperous and independent Vietnam.”

USAID in September 2019 launched the “Linkages for Small and Medium Enterprises” (USAID LinkSME) project, aiming to promote local SMEs’ reform and capacity to participate in manufacturing supply chains.

The project aims to strengthen the capabilities of the intermediary organizations in Vietnam, such as business associations, export development centers, and SME promotion agencies, in order to facilitate the supplier – buyer relationship between Vietnamese SMEs and lead firms located in Vietnam. It also targets expanding Vietnamese SMEs’ capacity to participate in manufacturing supply chains.