From household businesses to enterprises: Expanding opportunities for growth

As part of efforts to promote private sector development, and with increasingly comprehensive support policies from both the central government and Thai Nguyen Province, many household businesses have recently chosen to convert into enterprises. The transition has helped improve transparency and professionalism while creating greater access to financing, broader markets, and stronger competitiveness.

After more than 12 years operating as a household business, Dang Phi Hung's soybean business generated annual revenue of around 24 billion Vietnamese dong. However, as the business expanded, managing finances, working with larger partners, and operating under the lump-sum tax system became increasingly challenging.

After reviewing tax regulations and government support policies, he decided to convert his business into an enterprise in June 2025, opening up new opportunities for long-term growth.

Mr. Dang Phi Hung said: “Since converting to an enterprise, our accounting has become much more transparent at every stage. Tax procedures are also much clearer, which has enhanced our credibility and strengthened our position with business partners".

Another example of successful business transformation is Manh Khoi Mother and Baby Co. Ltd. Starting as a small 80-square-meter store in late 2016, the company has expanded to three business locations with 15 full-time employees. According to the company, the transition was more than just a change in legal status.

It has provided a solid foundation for building the brand, strengthening trust with customers and business partners, and gradually expanding its operation.

Mr. Nguyen Tien Dung, Director of Manh Khoi Mother and Baby Co. Ltd., shared: "The government offers corporate income tax incentives during the first three years after conversion. This gives us time to strengthen our organizational structure and stabilize our business operation".

These examples highlight the early impact of policies promoting private sector development. In the first six months of this year, the Thai Nguyen Tax Department supported 358 household businesses in converting into enterprises. As a result, the province now has 15,574 enterprises, reaching 89% of its 2026 target.

More than 77,700 household businesses are still operating across the province, representing significant potential for further expanding the local business community.

Mr. Do Xuan Tam, Head of Regional Tax Office No. 1, Thai Nguyen Province, said: "For household business owners who wish to convert into enterprises, we provide guidance and support with all the necessary procedures.

We also encourage service providers and banks to work closely with them by offering financial assistance, technology solutions and software to support their business operations"

The experience of household businesses that have made the transition shows that becoming an enterprise is not only a change in legal status, but also a shift in management thinking and development strategy.

As support policies continue to be implemented by both the central government and local authorities, converting into an enterprise will help household businesses improve their competitiveness, expand their markets, create more jobs, and make a greater contribution to the development of the private sector, an important driver of economic growth in the new development stage.