USAID Improving Private Sector Competitiveness Activity Annual Progress Report

The project is implemented by Deloitte Consulting LLP, in partnership with the Ministry of Planning and Investment (MPI) as the Government of Vietnam (GVN) counterpart. The project's general objective is to improve the competitiveness of SGBs, including those led by vulnerable populations, particularly women and ethnic minorities in Vietnam. To achieve this objective, the project is comprised of four inter-related Objectives: Building business management capacity of SGBs, Improving efficiency and productivity by promoting innovation, technology adoption, and sustainable business models, Enhancing business enabling environment for a broad-based inclusive economy, and Supporting private sector development. The project's progress in Year 1 was marked by several notable achievements. The Project Document (PD) was submitted to the MPI and its Overseas Development Assistance (ODA) Department in less than nine months, and it is currently undergoing review and comment from other ministries and government departments. The Project Implementation Manual (PIM) was also completed, which documents how the Project Team and AED's Project Management Unit will collaborate to prepare annual work plans, communicate and receive approval for the implementation of activities, engage in new activities proposed by AED, and facilitate travel, lodging, and per diems for project and government staff who participate in IPS-C activities. Other major activities in Year 1 included the completion of the rapid baseline assessment (RBA), completion of the gender assessment, completion of the Activity Monitoring, Evaluation, and Learning Plan (AMELP), and submission of the Year 2 Work Plan to USAID on September 30. The project team also began ramping up staff hiring and mobilization in anticipation of PD approval, with all 4 objective leads identified and recruitment activities finalized in September 2021. Despite the lingering effects of the Covid-19 pandemic quarantines, the Project Team achieved success in Year 1 and are well-prepared to continue successes in Year 2. The project team remains confident that beginning of Year 2 will prove even more successful as they continue to build up IPS-C presence in Vietnam. The project's implementation is expected to have a positive impact on Vietnam's private sector, enabling it to better participate in global value chains, enhance Vietnam's brand values, increase the influence of Vietnamese enterprises in international markets, and encourage enterprises to take advantage of existing and future trade agreements. The project's success will also contribute to the improvement of Vietnam's competitiveness in international organizations' indexes, such as the Global Competitiveness Index - GCI, the Doing Business Index - DBI, and the Global Innovation Index - GII. The project's progress in Year 1 demonstrates its commitment to improving the competitiveness of SGBs in Vietnam, and its efforts to create a friendly and convenient business environment, promote innovation in business operations, products, and services, and increase labor productivity and business efficiency. The project's continued success in Year 2 is expected to have a positive impact on Vietnam's private sector and contribute to the country's economic development.