The Vietnam Challenge Fund was launched on November 10 by the Ministry of Planning and Investment, the UK Department for International Development, and the Asian Development Bank.

With a total capital of US$3 million, the fund aims to support proposals for new business models from disadvantaged people. The fund’s evaluation board will consider projects within an acceptable funding range of between US$30,000 to US$250,000.

DFID chief representative in Vietnam Fiona Lappin said the fund will help reduce economic risks, generate jobs and increase income. Ayumi Konishi, ADB director general in Vietnam said the fund will help people turn a profit from the market rather than getting direct support from the state.

Deputy minister of Planning and Investment Nguyen The Phuong said the ministry will co-ordinate with ADB and DFID to fulfill the goals of developing the private sector and reducing poverty.

The fund will operate for two years.

PV