Advancing the sustainability of key population-led organizations in Vietnam through a social enterprise approach

BACKGROUND: Despite Vietnam's persistent HIV epidemic among key populations (KPs), external donor financing has declined markedly over the past decade, putting at risk the long-term viability of KP-led organizations that drive community HIV service delivery. A social enterprise (SE) approach may allow KP-organizations to self-sustain and grow their impact and income.
DESCRIPTION: From 2014-2021, the USAID/PATH Healthy Markets project partnered with KP-organizations to support them in advancing along a continuum of business development. A package of support was tailored to assist KP-organizations wishing to develop SE-clinic models. This included: 1) conducting market and consumer surveys, using results to inform targeted market entry for HIV/health goods and services; 2) collaborative assessment of KP-organization capabilities; 3) assisting KP-organizations to develop initial business plans, register as SEs, and establish clinics; 4) delivering technical assistance for marketing HIV/health goods and services; 5) facilitating mentoring, coaching, and training from a local SE incubator; and 6) mapping financing options and supporting groups to access capital. We measured progress toward sustainability through a tailored organizational capacity assessment and investment readiness tool.
LESSONS LEARNED: A 2021 assessment evaluated the organizational capacity and financial viability of three private clinics operating under SE arms: Glink Vietnam, Galant, and Alo Care. Their mean profit and revenue increased from US$32,934 and $191,964 in 2018, to $44,677 and $442,292 in 2020, respectively. As of June 2021, the clinics' annual revenues were 35-54% lower than expected due to COVID-19 social distancing, though Glink and Galant remained in-profit. Glink, Galant, and Alo Care's total client bases (a key indicator of market growth) grew by 250%, 200%, and 173%, respectively, from 2018-2020. During this period, all groups scaled their models: Galant and Alo Care each opened two new clinics, while Glink opened six. The clinics attribute service and client diversification as most valuable for enabling increases in revenues, profits, client base, and scale.
CONCLUSIONS: Operating private clinics is one way for SEs to generate sustained income while serving their social missions. Moving forward, it will be important to provide continued capacity-strengthening and investment-readiness support to assist KP-SEs in navigating their way toward financial independence, especially as COVID-19-related disruptions continue.

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