Transforming business models to expand room for development

Expanding scale and upgrading operations

Tuan Linh Agricultural Product Manufacturing and Trading JSC, based in Tran Phu Commune, was established in 2022 after transitioning from a business household. The company specializes in producing crispy frying flour, tempura batter and various seasonings.

Vu Dinh Nhuong, Chairman of the company’s Board of Directors, said that previously, when orders surged, the business had to hire additional temporary workers and sometimes even turn down orders out of concern that it could not meet delivery deadlines. After the transition, the company invested in machinery, including approximately VND 700 million in an automated packaging system.

As a result, productivity has increased, reliance on manual labor has decreased, and production and delivery have become more proactive. The company now supplies approximately 100 tons of products to the market each month. Operating as an enterprise has also created more opportunities to access loans for investment and business expansion.

After years of operating in the furniture sector, Vu Quang Ha in Thuy Nguyen Ward decided to transition from a business household to an enterprise. Building on this decision, AZUMY Hai Phong Co., Ltd. was established in early July 2026, laying the groundwork for more professional operations, stronger cooperation with partners and long-term development planning to meet increasingly demanding requirements for product design, quality and supply capacity.

Numerous enterprises across the city began as successful business households and have gradually built and established their own brands. The resources and experience accumulated during their time as business households provide a foundation for these enterprises to consolidate and expand their production and business operations.

Long-term development requires continued support

According to Nguyen Trac Thang, Chairman of the Hai Duong Association of Small- and Medium-sized Enterprises, transitioning from a business household to an enterprise is a necessary step for enterprises seeking to expand their scale and develop their markets.

The enterprise model facilitates management, transactions, brand building and access to a wider range of production and business opportunities. However, to achieve long-term growth, businesses need to strengthen their management capabilities, adopt technology and develop appropriate market strategies. Alongside businesses’ own efforts, regulatory agencies and associations should provide support with procedures, management knowledge and market connections.

For business households, the transition needs to go hand in hand with changes in management practices, improvements in product quality and stronger capacity to meet market demand. If they merely change their registration status without focusing on strengthening operational capabilities, they will find it difficult to fully capitalize on development opportunities. Conversely, investment in technology, brand building and customer base expansion will help businesses enhance their competitiveness.

Preliminary results from the 2026 Economic Census show that Hai Phong has 206,815 individual production and business establishments. This represents a substantial economic force with significant development potential if given the conditions to improve management capabilities and expand operations and markets.

Growing from a business household into an enterprise is not simply a change in registration status, but also a process of professionalizing operations, improving production and business efficiency, and establishing a foundation for long-term development. As more establishments develop the capacity to make this transition, the private sector will gain further momentum to contribute to the city’s growth.

HUYEN TRANG