IDEAS Insights Vietnam's emergent social enterprise sector - Page 6

Fig. 2: A member of the H’Mong ethnic minority group works in Yen Bai Province, Northern Vietnam Vietnam could look towards the example of Thailand, which has given pioneering support to social enterprise since amending its Constitution in 1997, to encourage civil society to support social initiatives. Thailand subsequently put into law ‘The Regulation of the National Promotion of Social Enterprises’, and set up the ‘Thailand Social Enterprise Office’ (TSEO) in 2010 with a $3.5 million budget, which is tasked with implementing a five-year Master Plan for Social Enterprises. This has been complemented by Finance Ministry measures to reduce taxes in March 2016. Under new Finance Ministry legislation, SEs ‘would be completely exempt from corporate tax if they allocated at least 70 percent of their net profit to social work’. [19] By the same token, investors in such companies can ‘deduct the cost in full from their corporate income tax’. 4