According to the Viet Nam Private Economy Report 2025, the country currently has around 6.1 million household businesses, creating jobs for approximately 10 million workers. Of these, more than 81.5% of surveyed households said their revenue declined in 2025, 73.7% earned only small profits, and nearly one quarter broke even or suffered losses.

The Government has raised the tax-exempt revenue threshold for household businesses to 1 billion VND (38,000 USD) per year, from the current 500 million USD, to support small businesses, according to a newly-issued policy.

Resolution No. 68-NQ/TW, issued by the Politburo on May 4 this year on the development of the private economic sector, ushers in fresh momentum, spurring entrepreneurial spirit and strengthening business confidence, Deputy Minister of Finance Nguyen Duc Tam told the press.

In recent years, especially since 2023, tax management of household businesses has made significant progress. State budget revenue from household and individual businesses has shown a positive growth trend.

Over nearly four decades of national renewal, Viet Nam’s household business sector has become one of the key pillars of the economy, making a significant contribution to job creation, livelihoods, and the vitality of local commerce across the country.

Supporting household businesses to transform into registered enterprises is considered one of the key solutions to realise the goals of Resolution No.68/NQ-TW and Directive No.10/CT-TTg. This will help expand the scale of production, improve competitiveness and promote sustainable development of the private economy.

Financial inclusion is not only a tool for social welfare but also a foundation for inclusive socio-economic development, with the core goal of maximising access to and use of suitable, safe financial products for all, especially vulnerable groups, small enterprises, and household businesses.

To achieve the target of having around 2 million enterprises by 2030, as set out in Resolution No. 68-NQ/TW of the Politburo on the development of the private sector, the “Digital cooperatives for digital transformation and application of science and technology” model has been proposed as an intermediary structure for applying digital technologies to support the transformation of household businesses into formal enterprises.

Nearly 1,500 household businesses officially transitioned into registered enterprises in the first half of 2025, with 910 making the switch in June alone, accounting for almost two-thirds of the total.

Since 2022, the tax sector has adopted a policy of implementing e-invoices generated from cash registers with a suitable roadmap and support plans to help taxpayers adapt.