Reporting to clarify the content of the draft Law on Enterprises (amended) at the National Assembly on the morning of May 20, Minister of Finance Nguyen Van Thang expressed his opinion on the need to include individual business households in the draft law to promote business households to become enterprises.

The Minister of Finance said that the current law applies to enterprises in the form of limited liability companies, joint stock companies, and private enterprises, and does not apply to business households.

In Resolution No. 68/NQ-TW of the Politburo on private economic development, the Politburo directed the Government to complete the legal framework on individual business households.

“The Ministry of Finance is proposing to the Government and the National Assembly to promulgate the Law on Business Households to determine the legality as well as the model and organization for individual business households,” said the Minister of Finance.

Regarding the policy of promoting business households to become enterprises, when submitting Resolution 68 to the Government and the Politburo, the Ministry of Finance also calculated that in order to have 2 million private enterprises by 2030 and 3 million private enterprises by 2045, there will have to be a certain number of shifts from individual business households to the establishment of small and medium enterprises.

Resolution 68 has fully calculated the solutions to encourage and promote individual business households that are qualified and capable of converting to enterprises, including preferential policies such as exemption of corporate income tax, support for land rent, reduction of tax declaration procedures, labor conditions, and also abolishing the lump-sum tax mechanism for business households, declaring taxes based on actual revenue like enterprises and having to issue invoices generated from cash registers.

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Minister of Finance Nguyen Van Thang explained and reported to the National Assembly on the draft Law on Enterprises (amended) on the morning of May 20, 2025. Photo: QH.

Regarding the limit on the ratio of bond debt to the equity of enterprises, some National Assembly deputies said that a rigid ratio should not be applied because this could reduce the opportunity for enterprises to mobilize capital, while our economy is having a relatively high growth rate, and there needs to be leverage for enterprises to promote production and business development.

However, Minister Nguyen Van Thang said that there needs to be a mechanism to control this. According to the Minister, recently, some enterprises, including those that are not yet public, have taken advantage of issuing individual bonds to raise a large amount of money, but then failed to repay their debts to investors. These incidents have greatly affected social security and order.

Minister Thang shared experiences from countries around the world. In Europe, some developed countries also have regulations on debt ratios. In Asia, many countries do not have such regulations, but they are all countries with transparency in business information, or use many other tools to control business activities, especially capital mobilization.

Meanwhile, we currently do not have enough conditions to not regulate the debt ratio limit in corporate bond issuance.

“After consulting with ministries, sectors and consulting with businesses, the drafting committee found that the regulation limiting the equity to no more than 5 times is appropriate. In reality, there is no exact answer to the question of how many times the limit is needed, there is only one answer: “stable”, the Minister of Finance shared.

According to the Minister, the value of bonds expected to be issued is not more than 5 times the owner's equity, which basically does not affect capital mobilization for production and business activities, serving the goal of economic growth; supporting enterprises that have to restructure debt when they have reached the debt ratio ceiling. In addition to issuing individual corporate bonds, enterprises can mobilize capital through issuance on the stock market or borrowing from banks.

Source: https://vietnamnet.vn/bo-truong-tai-chinh-se-som-trinh-du-thao-luat-ve-ho-kinh-doanh-ca-the-2402964.html