A newly released Vietnam Private Economic Report 2025 by the Vietnam Chamber of Commerce and Industry (VCCI) shows that 73.7 percent of household businesses report earning only modest profits, while just 1.9 percent say their earnings meet expectations.
Notably, 39.5 percent of surveyed household businesses identified tax and accounting compliance as their biggest current challenge.
Many small business owners say that they do not intend to violate regulations but simply do not know how to comply correctly. As a result, many are forced to hire outside services for assistance.
For small traders managing sales, inventory and cash flow, additional administrative procedures can be a major burden. Therefore, reforms targeting household businesses should not be measured merely by the number of new regulations issued, but by how understandable, practical and affordable they are to implement.
Household businesses are in urgent need of low-cost and user-friendly compliance tools, including simplified accounting software, easy-to-understand tax guidance written in everyday language, direct support services and timely consultation channels when problems arise.
Experts also note that support policies should be tailored to different groups of household businesses rather than applied uniformly.
Businesses that rely entirely on small-scale trading for their livelihoods should receive priority assistance. Micro-businesses need support in basic compliance and management, while larger household businesses may benefit from policies encouraging gradual transition into formal enterprises.
However, such transitions should come with an appropriate roadmap for obligations to avoid overwhelming businesses with excessive compliance pressure immediately after conversion.
Reducing compliance costs for household businesses, therefore, should not be viewed as weakening state management, but rather as making regulations more practical and manageable for millions of people who rely on daily trading to support their families.
With around six million household businesses nationwide, simplifying regulations and lowering compliance costs would help small traders operate more sustainably and efficiently.
