U.K. Donates $10M to Vietnam’s Business Fund to Support Private Firms

The U.K. government has granted $10 million through Department for International Development (DFID) to the Vietnam Business Challenge Fund (VBCF), which debuted in Hanoi on Nov 28.The fund aims to support private businesses with community-based ideas that help low-income people escape poverty.Fiona Louise Lappin, head of DFID Vietnam, said the fund will encourage private enterprises to get involved in poverty reduction, which is traditionally a responsibility of the government.The launch of VBCF showed the U.K. government’s confidence in the creative and innovative potential of the private sector, which is a critical growth driver in Vietnam, he noted. The VBCF, managed by the Netherlands Development Organization (SNV), will sponsor a maximum 49% of the total capital for projects in agriculture, green growth and infrastructure services for the poor.Priority will be given to projects that affect larger numbers of low-income people, especially women and children. The VCBF could potentially provide up to $800,000 to a particularly promising project.To be eligible for funding, enterprises will have to contribute half or more of the total capital when implementing a project and the project itself has to run for a minimum of two years. (vov.vn Nov 28, vietnamplus.vn Nov 28, Quan Doi Nhan Dan –People’s Army Nov 29 p8, Tien Phong – Pioneer Nov 29 p12)