The Ministry of Planning and Investment (MPI) and the US Agency for International Development (USAID) on April 21 signed an amendment to their bilateral partnership agreement to expand USAID’s support to Vietnam to include local capacity development.

Illustrative image. Source: VNA

The bilateral partnership agreement as amended will expand the two sides' joint efforts to strengthen private sector competitiveness, innovation and startup ecosystems, human capital, and local capacity building.

Under this amended agreement, USAID's contribution in these areas will increase from US$42 million to up to US$100 million and will continue for an additional three years, to September 30, 2028.

Speaking about the agreement, USAID/Vietnam Mission Director Ann Marie Yastishock said that this agreement reflects the United States’ continued commitment to supporting Vietnam’s efforts to become a more open, innovative, and inclusive economy.

"Through close collaboration with the Government of Vietnam, we can ensure that USAID’s development assistance will meet our two countries’ mutual vision for a prosperous and independent Vietnam,” she said.

USAID technical assistance under this agreement will enhance the capacity of Vietnamese small and growing businesses, including those led by vulnerable populations, by facilitating access to competitiveness-enhancing technology, business management skills, and capital.

The agreement will strengthen the high-quality human capital needed for a robust knowledge-based economy.

USAID technical assistance will also help improve the capacity of participating local governments (provincial level and below) to effectively implement policies, as well as increase interaction between local governments, the private sector, and other stakeholders on issues of local socio-economic development.

In January, the MPI and the USAID also launched a project on building the competitiveness of Vietnam’s small and growing businesses (SGBs).

The five-year project, with a budget of US$36 million funded by USAID, will encourage broad-based, inclusive economic growth through improved business practices, innovation and technology adoption, policy reform, and increased market access.

This project will foster locally-led, locally-owned solutions that leverage the strength of the Vietnamese talent pool, including the promotion of “Made by Vietnam” products, services, and technologies, as well as solutions that contribute to improving the business enabling environment.

It aims to support 5,000 SGBs, with 240 businesses successfully participating in domestic, regional, and international markets.

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