USAID Improving Private Sector Competitiveness Activity Quarterly Report January 1, 2021 – March 31, 2021

The project is implemented by Deloitte Consulting LLP in collaboration with the Agency for Enterprise Development (AED) and the Ministry of Planning and Investment (MPI). The project's general objective is to improve the competitiveness of Small and Growing Businesses (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 the business enabling environment for a broad-based inclusive economy, and strengthening business-to-business and cross-sectorial linkages. During the first quarter of 2021, the project team made significant progress in finalizing the Project Document (PD), which is a crucial step in obtaining approval from the Government of Vietnam (GVN) as an overseas development assistance project. The project team facilitated consultative meetings with AED in Hanoi, HCMC, and Tra Vinh, and nearly completed the first draft of the Project Implementation Manual (PIM). The PIM documents how the project team and AED's Project Management Unit will collaborate to prepare the annual work plans (AWP), communicate and agree to AWP modifications, 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. The project team also put the final touches on the Activity Monitoring, Evaluation, and Learning Plan (AMELP) and the Year 1 Work Plan, both of which were submitted in the first days of the second quarter. The project team looks forward to the activities of the second quarter, including the mobilization in June of the Chief of Party (COP) and possibly, if approved, the SGB Development Lead, which is the remaining key personnel. The project's progress was hindered by a long public holiday and the lingering effects of the Covid-19 pandemic quarantines, but the project team was able to achieve some successes nonetheless. The project team is better prepared to begin more robust measures in the second quarter, and they continue to look forward to a very positive collaborative relationship with AED/MPI in the months and years ahead. The project's quarterly report highlights the progress made during the first quarter, including the finalization of the PD, the completion of the first draft of the PIM, and the submission of the AMELP and the Year 1 Work Plan. The report also identifies the challenges faced by the project team, including the delay in the project's start-up due to the Covid-19 pandemic, and the need for additional staffing to support the project's activities. Overall, the IPS-C project is making significant progress in improving the competitiveness of SGBs in Vietnam, and the project team is committed to continuing their collaborative efforts with AED/MPI to achieve the project's objectives.