Micro, small, and medium-sized enterprises (SMEs) are the backbone of Vietnam’s economy, making up over 97% of all businesses and employing more than a third of the workforce. Yet women-owned SMEs (WSMEs) remain significantly underrepresented. Just 20% of SMEs in Vietnam are led by women, and most of these are micro or small in size.

Women entrepreneurs face persistent barriers, particularly in accessing finance. In Vietnam in particular, many women juggle the dual responsibilities of caregiving and income generation, often with limited access to the formal support, training, or capital that could help their businesses thrive. These barriers stem not only from structural inequality but also from widespread misconceptions: that women entrepreneurs are inherently risk averse, that they typically do not own the family businesses they manage, and that they possess lower financial management skills.

Most financial institutions still lack tailored strategies for WSMEs, despite evidence that their financial performance is comparable to that of male-led businesses.

According to Jurgita Vasilevskyte, Palladium Senior Manager of Economic Growth and WAVES Project Director, to truly unlock the potential of WSMEs, a gender-responsive financial ecosystem is essential. “This means creating an environment where women have equitable access to finance, tailored financial products, and supportive services, while also addressing the institutional and societal barriers that hold them back.”

It requires banks and policymakers to look beyond traditional models and respond to the unique needs of women entrepreneurs with better data, inclusive policies, and targeted capacity building.

“When this kind of ecosystem takes root, the results are far-reaching: more women can grow sustainable businesses, employment opportunities expand, and entire communities benefit from increased income and resilience.” She adds that a gender-responsive approach isn’t just a step toward equality, it’s a smart investment in long-term economic growth.

Unlocking Potential

In an effort to close this gap, the Asian Development Bank (ADB) launched the Women Accelerating Vibrant Enterprises in Southeast Asia and the Pacific (WAVES) programme, with a $20.19 million grant from the Women Entrepreneurs Finance Initiative.

Since 2020, Palladium has led the implementation of WAVES Components 1 and 2 in Vietnam, working with the State Bank of Vietnam, the Ministry of Planning and Investment, and key financial institutions to improve gender data, conduct regulatory reviews, and provide technical assistance. To date, the programme has supported nearly 2,000 women-owned SMEs with access to financing, training, and business support.

“By unlocking the full potential of WSMEs, WAVES is helping to reshape Vietnam’s business landscape, driving gender equality, inclusive growth, and economic resilience.”

“We know that transformative change starts with opportunity, and when women thrive, communities and economies thrive with them,” Vasilevskyte adds. The project is a key part of progress, supporting WSMEs to access the finance, tools, and knowledge they need to grow sustainable businesses.

Through tailored financial products, training, mentorship, and institutional support, the programme enables women not just to run businesses, but to lead thriving, resilient enterprises that generate jobs, promote innovation, and uplift entire communities. As she explains, it aims to break down systemic barriers that limit women’s economic participation and build a more inclusive and gender-responsive financial ecosystem.

Seeing the Potential in Action

But this work doesn’t happen in a vacuum. “Partnerships are key to this work and locally, we’re supported by our trusted partner, Mekong Economics (MKE),” she explains.

“With their in-depth local expertise and strong networks, MKE has played a vital role in delivering on-the-ground support, facilitating gender gap assessments and technical assistance, and ensuring that our approaches are contextually grounded and responsive to the needs of Vietnamese entrepreneurs.”

This has laid the foundation for critical enabling activities for WSMEs delivered by the Women’s Initiative for Women’s Startups and Entrepreneurship (WISE). For one woman, a recipient of a COVID-19 Relief Grant from VP Bank, the funding took her from a small business owner to employer and role model, illustrating the ripple effects of providing women with the right tools and support.

Her business, H&A Fashion, designs and manufactures fashion products for both domestic and international markets. The grant programme, which pairs financial assistance with tailored business counselling, was created to help WSMEs navigate the economic fallout of the pandemic and strengthen their long-term resilience. Prior to 2020, H&A Fashion had been steadily expanding, with consistent growth in both revenue and profit. But the arrival of COVID-19 brought that momentum to a halt. As foot traffic dwindled and government-mandated social distancing measures forced the closure of its showrooms across Ha Noi, the company saw its retail revenues nearly vanish.

With support from the grant programme, H&A Fashion stabilised, adapted, and returned to a growth trajectory. In 2022, the company expanded its workforce by 20% compared to the previous year, and by another 10% in 2023. Looking ahead, the company has set its sights on further growth, planning to open a new production facility and broaden its national footprint beyond its existing 57 showrooms.

H&A Fashion’s recovery underscores how catalytic support at the right moment can not only save businesses, but also position them for sustainable, inclusive growth.

These stories are a testament to what can happen when inclusive finance meets intentional, gender-transformative programming. As we continue our work in Vietnam, we are proud to partner with ADB and We-Fi to break down barriers, reshape systems, and ensure that women have the resources, recognition, and respect they need to lead.

Learn more about H&A Fashion’s story and other businesses or contact info@thepalladiumgroup.com for more.