Supporting household businesses in transitioning to enterprises
Departments, sectors, agencies, communes, wards, and special zones across Hai Phong City are focusing on implementing solutions to support household businesses in transitioning to enterprises.
Helping household businesses understand the benefits of conversion
An Phong Ward currently has nearly 500 household businesses operating in various fields such as trade, services, transport, and small-scale production. Among them, many have revenues, workforce size, and actual operating scales that already exceed the criteria for micro-enterprises.
According to Ms. Tran Van Hai, Vice Chairman of the An Phong Ward People’s Committee, practical experience shows that many household businesses have developed needs to issue value-added tax (VAT) invoices to cooperate with enterprises and projects; seek to expand business locations, increase workforce size, mobilize capital, or separate personal assets from business assets. These needs can only be fully met when operating under the enterprise model.
From this reality, in connection with the implementation of the Politburo’s Resolution No. 68, An Phong Ward has proactively rolled out comprehensive efforts to promote and support the transition of household businesses to enterprises. Particular emphasis is placed on coordinating with relevant departments, sectors, and units to help household businesses clearly understand legal regulations, benefits, and support policies associated with the transition, thereby enabling them to proactively choose an appropriate development roadmap.
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Recently, the An Phong Ward People’s Committee, in coordination with the Department of Finance and relevant units, organized a conference to provide guidance on procedures for converting household businesses into enterprises. Immediately after the conference, eight household businesses in the ward registered for conversion, demonstrating a positive response from local residents to this policy.
As one of the household businesses in An Phong Ward with annual revenue exceeding VND 500 million, Mai Ich Nguyen, owner of An Phat Motorbike Shop in Dinh Ngo 2 residential area (An Phong Ward), said that since putting his shop into operation in 2024, he had intended to convert to the enterprise model. However, the conversion process faced certain difficulties, particularly related to issuing invoices for used motorbikes, which made him hesitant. “Now that I have received direct guidance from local authorities and relevant departments, I feel more confident and will proceed with the conversion,” Nguyen said.
Not only in An Phong Ward, at the end of December 2025, the Hai Duong Ward People’s Committee also coordinated with the Department of Finance and Local Tax Office No. 9 to organize a conference providing guidance on converting household business models into enterprises for more than 300 household businesses in the area. Following the conference, several household businesses took the lead in completing conversion procedures, demonstrating a proactive spirit and alignment with the State’s policy of developing the private economic sector.
Multiple support solutions
In concretizing the orientations of the Politburo’s Resolution No. 68 on private economic development, the city has set a target of having more than 87,000 active enterprises by the end of 2030, with a vision of exceeding 264,000 enterprises by 2045.
According to the Department of Finance, the city currently has around 200,000 active household businesses. This represents significant potential for realizing the city’s enterprise development goals in line with Resolution No. 68.
To achieve these objectives, the city has identified supporting household businesses in transitioning to the enterprise model as a key task, to be implemented in a coordinated manner through a range of practical solutions. The focus is on administrative procedure reform, shortening enterprise registration timelines, and effectively implementing policies on tax, fee, and charge incentives.
In implementing the city People’s Committee’s directives, the Department of Finance has shortened the enterprise registration processing time from three working days to just 1.5 days, and has developed digital guidance materials for enterprise registration on online platforms. At the same time, it has worked closely with local authorities and relevant units to organize training sessions, conduct outreach, and provide direct support to household businesses throughout the conversion process.
Alongside state management agencies, telecommunications companies and banks have also actively joined these efforts. Mr. Tran Van Thang, Deputy Director of Viettel Hai Phong, said that the company is rolling out various support programs for household businesses, such as providing free digital signatures, sales management software, and assigning personnel to offer on-site assistance. To date, Viettel Hai Phong has supported approximately 4,000 household businesses across the city.
From the perspective of household businesses, the coordinated support solutions provided by departments, sectors, local authorities, and enterprises have been highly appreciated. However, to encourage more households to confidently make the transition, residents hope to continue receiving closer and more specific guidance throughout the implementation process.
According to statistics from the Department of Finance, in implementation of the Law on Support for Small and Medium-sized Enterprises, from 2019 to the end of 2025, a total of 399 household businesses across the city transitioned to the enterprise model. From the issuance of Resolution No. 68 to the end of 2025 alone, 170 household businesses made the transition, accounting for 42.6% of the total number of transitions.
Household businesses that convert to operating under the enterprise model are entitled to a range of incentives, including: exemption from the business license fee for three years from the date of first issuance of the enterprise registration certificate during the initial establishment period; exemption from corporate income tax for the first three years for small and medium-sized enterprises converted from household businesses; support with accounting software, sales management software, electronic invoices, digital signatures, digital platforms, and related procedures for implementing digital transformation in enterprise management; and participation in training and capacity-building programs organized by the city and relevant departments and sectors.
Minh Cham