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COVER STORY

that many companies have not fully or partially
Common ground recovered their receivables, while others lack
the capacity to move their business online
and struggle in clearing their stock due to
social distancing measures.
Alliances between organizations could assist the development
of generations of women entrepreneurs in Vietnam.
Urgent support
The Ignite Initiative program, which was
officially announced last October by CARE,
Mastercard, Women’s Initiative Startups and
s Covid-19 continues to disrupt busi- tic tourists might help her recover during Entrepreneurship (WISE), VPBank, and fin-
nesses and communities around Viet- the summer, when travel restrictions and tech startup Canal Circle, focuses on pro-
A nam, many emerging women-led social distancing requirements were eased. moting the empowerment of women entre-
small and medium-sized enterprises (SMEs) But a second wave of infections late in July preneurs. The multilateral partnership aims
have benefited from assistance provided by made her situation even more precarious. to accelerate the growth of economy-changing
international and non-governmental organ- Ms. Mai’s company and many others in businesses while advancing financial security
izations (NGOs) in strengthening their ability all sectors have suffered from a massive and also promoting inclusive growth through
to access financial support. Direct assistance decline in turnover due directly or indirectly prioritized action to enable women entre-
and training are helping these businesses to Covid-19. Vietnam’s total tourism revenue preneurs to thrive.
stay afloat amid the pandemic, and financial fell 58.7 per cent last year compared to 2019, The program targets over 50,000
tools customized specifically for women can welcoming just 3.7 million international visi- “strivers” such as Ms. Mai; women entre-
help them thrive. tors, down 80 per cent, and 56 million domestic preneurs employing from two to ten people
tourists, down 34 per cent. and looking to grow their business and hire
Focus on survival Micro, small and medium-sized enterprises more staff but often lacking the appropriate
Ms. Nguyen Huong Mai launched her own (MSMEs) account for roughly 95 per cent of finance. The alliance aims to support women
business in Hanoi in 2017 after working for all businesses in Vietnam and they have entrepreneurs in Vietnam from 2020-2023
two decades for a State-owned tourism com- become much more vulnerable than others. with three main pillars: increased access to
pany. Within a year, her travel company, Nearly 80 per cent of local businesses rank adapted financial products and services;
Saigon Today Communication, posted annual the pandemic as either a serious or severe access to wrap-around services (capacity
revenue of nearly $1.3 million. She then threat to their survival, according to a report building, skills building, mentoring, and
opened two new restaurants in Hanoi and from the Centre for Social Initiatives Promo- digital tools); and outreach campaigns pro-
invested in a small hotel. Company revenues tion. As one of the top 20 countries globally moting digital solutions and adapted products
totaled $5.2 million in 2019. for women entrepreneurs, the shutdown par- and services and addressing social and insti-
Then, on January 23 last year, news of a ticularly impacted a large number of women- tutional barriers.
strange virus in Wuhan, China, led to mass owned businesses in Vietnam. Ms. Tran Quynh Anh, the young owner of
cancelations by Chinese travelers. Five tours In the struggle to get through this difficult Ifood, which provides imported food to restau-
and 300 rooms were canceled in one day, time, according to the NGO CARE, some rants and hotels in Hanoi, quickly launched
followed quickly by a prohibition on all travel women-owned enterprises have needed to online sales last year to take advantage of
and the closing of all non-essential businesses resize their business and utilize personal sav- convenient delivery services and offset revenue
in Vietnam. From January to June, her com- ings to keep their businesses afloat, while losses. “Our online channel currently accounts
pany earned less than one-tenth of its 2019 others are seeking various sources of capital for 30 per cent of revenue,” she said.
revenue. She hoped that travel-hungry domes- to continue. CARE Vietnam has also observed Women entrepreneurs remain unserved
or underserved by financial and non-financial
service providers, and Quynh Anh is no excep-
tion. Through the Ignite Initiative, she and
many other Vietnamese entrepreneurs are
accessing new opportunities to grow their
companies. The alliance has been able to
open up much-needed access to finance, tech-
nology, and networks, and build entrepre-
PHOTO: ANH TRAN / CARE
neurial capacity and skills. “With CARE’s
support, I hope to be able to expand my net-
work and reach larger enterprises that I can
learn from,” she said.
The initiative also includes business skills
training and coaching and mentoring for
women entrepreneurs. It is these small,
women-owned companies that will be on the
frontlines of economic recovery as Vietnam
emerges from the pandemic, according to
Mr. Dao Gia Hung, Deputy Head of the SME
Banking Division at VPBank. “Woman entre-
preneurs will need to take advantage of loan
options especially created to help reboot the
Ms. Nguyen Huong Mai (third from left) in an in-depth group interview in Hanoi with other female economy,” she said. %
business owners.

22 | VIETNAM ECONOMIC TIMES | MARCH 2021