Providing effective support to household businesses.

According to the Vietnam Private Economic Report 2025, the country currently has approximately 6.1 million business households, creating jobs for about 10 million workers. Of these, over 81.5% of surveyed households reported a decrease in revenue in 2025, 73.7% only made minimal profits, and nearly a quarter broke even or incurred losses. These figures reveal a worrying health of an economic sector that, while small in scale, is deeply rooted in social life.

Graphic image. (Photo: MINH DŨNG)

Household business For a long time, small businesses like breakfast stalls, grocery stores, or market stalls have been considered a flexible part of the economy . While they may not generate large sums on economic reports, they support many families, maintain consumer spending in residential areas, and provide employment for numerous workers. However, their small scale, limited capital, and reliance on experience make them vulnerable to market fluctuations and increasingly stringent management requirements.

More worryingly, the current pressure also comes from compliance costs, which are becoming an "invisible but very heavy cost." Approximately 73% of businesses believe that legal difficulties and the time spent complying with regulations have a significant impact. It must be affirmed that business transparency, data-driven tax management, and the implementation of electronic invoices are correct policies. However, if the methods are not suitable for practical realities or exceed the capacity of those involved, they can easily become a compliance burden. This is because most small businesses lack accounting, legal, or technological expertise; for them, reluctance to switch sometimes stems from the fear of making mistakes in data entry or reporting, leading to incorrect penalties.

Therefore, the fact that only 15.6% of households intend to convert into businesses in the next two years is not simply a matter of reluctance to make a big move, but also reflects a very simple calculation: What will be gained and lost from the conversion? Do they have the capacity to continue, and will the risks increase?

Therefore, encouraging household businesses to transform into enterprises should not be simply understood as a way to achieve the target of 2 million enterprises by 2030 as stipulated in Resolution No. 68-NQ/TW on the development of the private economy. If we only pursue quantity, we may create a large but weak workforce of enterprises – enterprises that bear the name of a business but are still weak in terms of capital, management, market access, and resilience.

The first thing that needs to change is the mindset. Household businesses will only confidently grow when they see a less risky path ahead and clearer benefits. You can't just increase requirements for taxes, invoices, and bookkeeping and then expect small businesses to automatically adapt and professionalize.

Household businesses will only confidently grow when they see a less risky path ahead and clearer benefits. It's unacceptable to simply increase requirements regarding taxes, invoices, and bookkeeping and then expect small businesses to independently manage and professionalize.

A sufficiently long transition roadmap is needed, along with simplified procedures, easy-to-understand forms, user-friendly software, and direct consultation points at wards, communes, markets, and business districts. More importantly, the transition must be accompanied by tangible benefits, such as streamlined administrative procedures, a favorable and open business environment, and more efficient access to resources. Most importantly, they need support with initial accounting practices, reduced compliance costs, and fewer overlapping inspections and audits.

When the benefits are clear enough, household businesses will consider taking the next step themselves instead of remaining on the sidelines for fear that the transition will only mean more paperwork, more costs, and more risks. Only then will the development of the private economy be truly sustainable, effective, and measurable by the vitality of each entity after entering the formal sector.

Source: https://baoquangninh.vn/ho-tro-hieu-qua-ho-kinh-doanh-3409181.html