USAID INVEST | Vietnam Portfolio

Private investment in Vietnam is insufficient to meet the country’s development needs, particularly in infrastructure, energy, and health. Investing in these areas is complex, and investors can encounter poor risk-reward ratios that make investment unattractive. Through its global initiative, INVEST, the U.S. Agency for International Development (USAID) is working to reduce barriers for investors and mobilize private investment into high-impact areas in Vietnam.

REDUCING RISK IN RENEWABLE ENERGY 

USAID INVEST is working to reduce risk and increase the appeal of renewable energy projects for private investors. This includes supporting feasibility studies, environmental and social impact assessments, and engineering evaluations.

PROMOTING MARKET-BASED HEALTH CARE MODELS

The project is helping community-based organizations and social enterprises to diversify their income streams and improve business models, enabling them to provide essential and financially sustainable health care services. 

ADVANCING IMPLEMENTATION OF PUBLIC-PRIVATE PARTNERSHIP LAW

The project supports Vietnam’s operationalization of its first public-private partnership law, enacted in 2020 with USAID assistance. This includes helping Vietnam to apply international best practices in structuring and implementing blended finance projects, which leverage public funds to attract private sector investments, and create more favorable conditions for private investment in the country’s much needed infrastructure. 

PROMOTING GREATER RULE OF LAW IN RESOLVING COMMERCIAL AND INVESTMENT DISPUTES

Creating an effective commercial and investment alternative dispute resolution (ADR) ecosystem is critical for attracting greater private investment. The project has partnered with the Vietnam International Arbitration Center, a leading Vietnamese arbitration and mediation institution, to improve this ecosystem in Vietnam. The project is training  local stakeholders, including arbitrators and judges, on international best practices; educating the business community on the benefits of ADR; and improving the country’s online arbitration infrastructure to handle cases more efficiently and effectively.

OTHER AREAS

The project is supporting the Ministry of Industry and Trade in its efforts to establish facility-level greenhouse gas reporting requirements. The project is also conducting an assessment of the social impact investing ecosystem in Vietnam, and will develop suggested guidelines for social impact investment funds to operate in Vietnam and recommendations for Vietnam on how best to encourage the private sector to invest in disability inclusion businesses. 

IMPACT

Through this portfolio, the project is strengthening Vietnam’s ability to attract private investors, better positioning the country to effectively manage its public resources, ensure quality services for citizens at fair market prices, and sustainably finance its own development.

TARGETED LOCALITIES

The project works at the national level and focuses work in Hanoi, Ho Chi Minh City, and Quang Ngai, Ca Mau, and Gia Lai provinces.