In order to encourage more than 5 million business households to convert to businesses, experts think that tax exemption should be for about 3 years.
At the seminar “Vietnam Economic Picture 2025 and economic policies need to be concerned about” on the morning of March 25, Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of Vietnam Trade and Industry Federation (VCCI) said that encouraging business households to convert to businesses is one of the contents being discussed in the upcoming resolution of the Politburo on private economy.
According to Mr. Tuan, transferred to the business model to help business households improve professionalism and competition. “We can boldly exempt tax for 3 years for business households to become businesses,” he proposed.
Last week, at a seminar on private economy, PhD. Can Van Luc, Economic expert BIDV also stated the idea of income tax exemption for the first 3-5 years for business households to be transformed into micro enterprises, to nurture revenue. At the same time, simplify the establishment procedures and have accounting and management support.
Mr. Dau Anh Tuan, Deputy Secretary General, Head of the Legal Department of VCCI speaking at the seminar under the framework of the announcement of high quality Vietnamese goods 2025 on 25/3. Image: BSA
Ms. Ly Kim Chi, Vice Chairman of Ho Chi Minh City Business Association, agreed on the idea of tax support to encourage business households to turn into enterprises. She, for example, Ho Chi Minh City has about 400,000 business households. Of these, actually operating about 230,00-270,000. In particular, more than 20,000 households have been operating very effectively and sustainable development for decades.
“If these households are supported, guided and facilitated to turn into an enterprise by the most minimalist tax exemption and accounting mechanism, the locality will have a very powerful new business force,” Chi said.
The country currently has about 5.2 million business households, contributing more than 24% to GDP and is considered by experts to be “backbone” in many industries and fields, from public – agriculture to trade – services, but at the same time are “fragmented”. Of these, only about 2.1 million households registered for business and fully pay taxes.
More than 3 million households have not registered and mainly pay stock tax. According to Mr. Luc, the tax mechanism is fast and compact, but not transparent, easily leading to budget loss and creating a “please – for” mechanism. Therefore, it is necessary to encourage business households to convert into enterprises.
Comments on the private economy in generalMr. Dau Anh Tuan assessed that despite many support policies, this area still faces many limitations such as small scale, lack of headwarming businesses, links and weak competitiveness, although accounting for about 51% of GDP, 80% of the total number of economic workers and contributing more than 30% of the budget.
Therefore, according to Mr. Tuan, one of the resolution solutions being discussed is, determining the private economy as the most important driving force of the economy. Creating more favorable conditions for this block will contribute significantly to the overall growth.
According to the orientation, in addition to encouraging business households to convert into enterprises, the upcoming policy will set out specific strategies and support for each group of private enterprises.
In particular, large enterprises solve large problems, national programs, can enjoy the “order”, “green” mechanism for key projects, priority to strategic industry such as AI, semiconductor chips. Small and medium enterprises take advantage of quantity, diversity, adaptability to form the link chain. They will be financially supported, investment funds, FDI connectivity, export.
Speaking at the announcement ceremony of Vietnam high quality 2025 afternoon 25/3, Ms. Nguyen Thi Le, Chairman of Ho Chi Minh City People’s Council, said the private sector accounted for 77% of the local economic structure. In 2024, more than 67% of more than VND 395,000 billion of total social investment in the area came from the private sector.
Ms. Le said that the economic leader committed to implementing the orientation to perfect the market economy institution full, minimizing administrative intervention, eliminating the “please – for” mechanism, promoting healthy competition and especially “eliminating all barriers, regardless of treatment between economic sectors”.
The city is also developing business support institutions such as innovation center, digital conversion center, industrial center 4.0 to accompany and support businesses to improve productivity, competitiveness, green conversion, digital conversion, according to Ms. Le.