HCMC– Finance Minister Nguyen Van Thang on Thursday said the Government would introduce tax breaks and digital tools to encourage household businesses to register as companies, as part of efforts to reach the target of having two million companies by 2030.
Speaking at a National Assembly session on June 19, Minister Nguyen Van Thang said Vietnam has around 5.2 million household businesses, many with annual revenues comparable to or exceeding that of small enterprises.
He said most household businesses hesitate to formalize due to concerns over higher compliance costs, unfamiliarity with corporate regulations, and preference for simplified tax procedures under the current flat-rate system.
Thang said the Government plans to scrap the flat-rate tax scheme from early 2026 and invest in digital infrastructure to improve transparency and ease the transition.
“This is a fundamental solution to encourage household businesses to switch to formal enterprises,” Thang said.
The Government also plans to offer corporate income tax exemptions for three years, waive business license fees, and provide free access to accounting software and digital platforms.
The shift is part of a broader strategy to reach two million registered enterprises by 2030, a target set under Resolution 68 of the Politburo.
However, lawmakers expressed concern over the rising number of business closures in recent months, which could hinder progress toward the target.
Thang said weak domestic demand and challenging market conditions have led to a high number of business exits.
To address this, he said the Government would focus on improving the business environment, cutting administrative procedures, and lowering compliance costs.
Additional support will be directed at land access, financing, technology, digital transformation, and workforce development to enhance competitiveness and resilience.
