Household businesses are experiencing a decline in 'health'.

Nationwide, there are approximately 6.1 million business households, creating jobs for 10 million workers, but over 81% of these households experienced a decrease in revenue, and 24% of business households were expected to break even or incur losses by 2025.

Revenue and profits for most household businesses are expected to decrease in 2025 - Photo: B. NGOC

These are the figures on the declining "health" of household businesses in 2025, recently released by the Vietnam Chamber of Commerce and Industry (VCCI) in its Vietnam Private Economy Report 2025.

Revenue for most household businesses has decreased.

The Vietnam Chamber of Commerce and Industry (VCCI) argues that within the structure of Vietnam's private economy, the household business sector is not only a small-scale production and business unit, but also a fundamental component of socio-economic life.

It is estimated that by the end of 2025, the whole country will have approximately 6.1 million business households, creating jobs for about 10 million workers and contributing about 32.8 trillion VND to the state budget.

A survey conducted by VCCI from February to April 2026 with 1,001 active household businesses in 34 provinces and cities nationwide shows that the household business sector will enter the 2025-2026 period facing many pressures due to market fluctuations and increasingly sophisticated management requirements.

Regarding business results in 2025, 73.7% of households reported low profits, 12.9% broke even, 9.3% incurred small losses, 2.2% incurred large losses, and only 1.9% achieved the expected profit.

This indicates that the majority of businesses are still operating, but profit margins are thin, and there is limited room for accumulation for reinvestment.

Also in 2025, 23% of surveyed businesses reported a sharp decline in revenue, while 58.5% reported a slight decrease.

Additionally, 20.6% of businesses reported a significant decrease in customers, while 54.8% experienced a slight decrease.

According to VCCI, the widespread decline in revenue and customer numbers over the past year shows that the difficulties faced by household businesses stem not only from their small scale but also from the market demand that is in the process of adjusting.

Many households face difficulties in fulfilling their tax obligations.

According to the VCCI survey results, the business trends of household businesses in the next two years also show several signs that need attention.

Sixty-eight percent of business households expect to remain operational, 33 percent are inclined to scale back their business, 4.4 percent plan to dissolve, and only 1.8 percent intend to expand.

According to the VCCI research team, these figures reflect the dominant trend for household businesses in the coming period: maintaining operations and managing risks rather than expanding their businesses.

The Vietnam Private Sector Economic Report 2025 also points out a series of difficulties currently faced by the household business sector, including challenges related to resources, markets, production inputs, and the legal framework for investment and business.

Tax compliance and electronic invoicing are also common difficulties faced by most business households. Up to 71.2% of business households reported difficulties in collecting customer information to issue electronic invoices, 67.6% encountered difficulties in accounting for deductible expenses, and 62.3% faced difficulties in tax declaration and payment.

The VCCI survey also indicated that business households urgently need support in the process of issuing electronic invoices.

Regarding the electronic invoicing process, 35.3% of businesses reported encountering technical errors, 54.8% did not know how to correct incorrect invoices, 31.1% lacked equipment, 9.6% encountered other difficulties, and only 13.6% reported not experiencing any difficulties in issuing electronic invoices.

One notable point in the VCCI survey is that the level of difficulty faced by household businesses tends to increase with the size of their revenue. This more or less affects the process of household businesses converting into enterprises.

Fifteen.6% of surveyed households indicated their intention to convert into businesses within the next two years, while 84.4% had no such plans. This suggests that the majority of households do not intend to convert into businesses in the short term.

BAO NGOC

Source: https://tuoitre.vn/suc-khoe-ho-kinh-doanh-suy-giam-20260517103741851.htm