Clearer legal status will allow household businesses to thrive

Consultation workshops in Hanoi and Ho Chi Minh City gather ideas and opinions for the draft Decree on household business.

News | Hanoi, Viet Nam | 13 October 2023
Consultation workshop on the draft Decree on household business, 10/2023. ©ILO
HANOI, Viet Nam (ILO News) - Last week, the International Labour Organization (ILO) Country Office for Viet Nam joined the Vietnamese Ministry of Planning and Investment (MPI) in organizing consultation workshops to gather opinions on the draft Decree on household business. The workshops took place in Hanoi on 10 October and in Ho Chi Minh City on 12 October, with participants from various ministries, departments, localities, law firms, domestic and international experts, as well as members of the Drafting Committee and the Editorial Board of the Decree.

According to the General Statistics Office, there are currently more than 5.5 million household businesses in the country, contributing about 30% to GDP annually and creating millions of jobs for society.

“Playing such a vital role in the economy, household businesses need to be given attention and a transparent legal corridor to continue developing.” said Mr Phung Quoc Chi, Director of the Agency of Business Registration under MPI. The development of the Decree aims to create a favorable business environment for individuals and households to carry out production and business activities, contributing significantly to economic growth, improving people's lives, ensure social protection, said Mr Phung.

Delegates at the workshops all agreed that a clear decree would help enhance the role of household businesses, Viet Nam, 10/2023. ©ILO
Mr Kelvin Sergeant, ILO’s Specialist on job creation and enterprises development noted that the current legal framework does not officially recognize household businesses as economic organizations. Household businesses still lack attention and support compared to other types of businesses.

“ILO’s recommendations go to the need for revisiting the definition of household businesses, identification and statistical classifications, procedures that are needed for registration of household businesses, regulations for those entities that do not need to register based on their level of income, and availability of business support and development services, including financial services for household businesses.” Mr Kelvin Sergeant shared.

Speaking at the conference, ILO Viet Nam’s Officer-in-charge, Ms Gulmira Asanbaeva emphasized: “We hope that by addressing these key areas for household businesses, the new Decree will create a well-designed policy that facilitates recognition of household businesses as important economic entities and streamline the application of favourable business regulations in the economy of Viet Nam. Development of this decree will create good business environment for individuals and households by contributing to improved living standards, more decent work, social justice, and sustainable development goals of Viet Nam.”

From sharings at the workshops, it is expected that the Decree on household businesses will soon be completed and submitted to the Government for further consideration.
Mr Kelvin Sergeant, ILO’s Specialist on job creation and enterprises development, presents at the workshop, 10/2023. ©ILO
ILO Viet Nam’s Officer-in-charge, Ms Gulmira Asanbaeva, 10/2023. ©ILO