Private enterprises in Vietnam can receive financial support of up to 800,000 USD from the British Government for innovative and sustainable business.

The 11 million USD Vietnam Business Challenge Fund (VBCF), launched in Hanoi on Nov. 27, is designed to enable private companies to develop business models that help low-income populations through job creation, income improvement and access to affordable goods and services.

The fund has been built on the success of the recently completed Vietnam Challenge Fund (2009–12), co-funded by Britain and the Asian Development Bank (ADB) – and managed by the ADB.

"The launch of this second and much larger challenge fund in Vietnam demonstrates our confidence in this approach," said Fiona Lappin, head of the UK 's Department for International Development in Vietnam .

"We learnt from the impressive impact of our first venture that the creativity and capacity for innovation of the private sector in this country is abundant," she said, adding that the second fund could help catalyse the ambition of the private sector into tangible business projects as well as provide jobs and better incomes for the poor.

The VBCF, managed by the SNV Netherlands Development Organisation, will provide business mentoring support and award non-reimbursable funding to selected proposals through a competitive process.

It focuses on areas identified as key to the continuous development of Vietnam – agriculture, low-carbon growth, infrastructure and basic services.-VNA