Why businesses opt for "Social impact" over formal social enterprise status in Vietnam?

Abstract

In Vietnam, businesses increasingly identify as "Social impact" rather than formally registering as social enterprises. This study, using in-depth surveys with key figures, unveils eleven reasons for this trend, categorized as motivations, regulatory challenges, and other factors. Flexibility, branding, and specific social goals emerge as key motivators, while complex registration and limited benefits pose challenges. These findings call for action from policy makers, support organizations, and businesses themselves to foster an environment where all actors can thrive and contribute to a more just and sustainable Vietnam.