Gov’t to revise policies on household business model

The Government has assigned the Ministry of Planning and Investment (MPI) to develop a household business project with an aim to supplement support policies and better manage the business model.

Deputy Minister Trần Duy Đông said it is important to review and propose amendments and supplements to the current regulations related to household business operation and management to promote the role of the business model.

To develop the project, the Ministry of Planning and Investment has so far worked with provinces and cities such as Thái Nguyên, Thừa Thiên-huế and HCM City to learn about business household management in the localities.

The project’s development committee is assessing the current management situation and policies to make proposals for this type of business.

The committee is also researching experiences on business household development policies in other countries around the world to find the most suitable ones applicable to Việt Nam.

Besides building a database of business households to effectively manage the sector, the project will also aim to popularise and improve the capacity of business households on the environment; food safety and hygiene; and management, accounting and financial capacity.

Bùi Thu Thủy, deputy director of the MPI’S Agency for Enterprise Development, said there are currently no specific regulations to support business households.

According to Thủy, the Law on Support for Small and Medium Enterprises, and Decree 80/2021/ NĐ-CP only have specific regulations to encourage the conversion from household business to enterprise. Specifically, business households can get free guidance and advice to set up an enterprise; an exemption of licence fees for the first three years; and consultation on tax, accounting and administrative procedures.

However, the support policies are not attractive enough to motivate business households to convert to enterprises because the actual costs related to taxes, accounting and administrative procedures for establishing and operating a householdbusiness are simpler and lower than those of an enterprise.

To improve the effectiveness of State management and supplement policies for business households, experts said the project should revise regulations on labour, insurance and corporate income tax to promote the role of the business model. Besides, the project needs to further amend and supplement policies encouraging business households to convert to enterprises.