Social innovation is emerging in Vietnam, with 167 social enterprises operating across 25 provinces. Common sectors include vocational training, handicraft production, and healthcare. Social enterprises provide jobs for over 8,500 people, including nearly 3,000 with special needs, and directly improve the lives of over 377,000 people through poverty reduction, education, and human welfare programs. Challenges facing social enterprises include balancing social and profit objectives, high staff turnover, lack of legal recognition from the government, and limited access to capital and funding. Case studies highlight successful social enterprises like Mai Vietnamese Handicrafts and KOTO that provide employment and training.