Gia Lai province has rolled out an ambitious plan to accelerate the transition of household businesses into enterprises, positioning the private sector as a core engine of economic growth.
Under Plan No. 21/KH-UBND, issued on 20 January 2026, the province targets the creation of 7,000 new enterprises by the end of 2026, including up to 3,275 converted from household businesses. The initiative aligns with national directives emphasising the private sector’s role in driving development and strengthening social security.
* Resolution No. 68-NQ/TW affirms the private sector as a key driver of growth, yet development remains below potential. How is the private sector performing in Gia Lai?
Mr. Đinh Hữu Hòa, Deputy Director of the Department of Finance. Photo: T.Sỹ
- Between 2021 and 2025, Gia Lai averaged 1,575 newly established enterprises each year, an increase of 990 per year compared with the 2016, 2020 period. In 2025 alone, the province recorded 3,185 new enterprises, up more than 47% from 2024, with total registered capital reaching 28 trillion VND (≈1.12 billion USD), a rise of over 43%.
Today, Gia Lai has nearly 19,000 enterprises and around 66,000 household businesses, contributing about 80% of local GRDP and generating jobs for 94% of the province’s workforce. This reflects strong private-sector expansion and its central role in socio-economic development.
However, most firms remain small or micro-sized, with limited financial resources, modest management capacity and low innovation. They are vulnerable to operational risks, and many face persistent barriers in accessing credit, land and skilled labour—constraints that continue to hold back competitiveness and long-term growth.
* Plan No. 21/KH-UBND aims to promote the conversion of household businesses into enterprises. What are the province’s objectives under this plan?
- Plan No. 21 identifies household-to-enterprise conversion as a priority task to strengthen private-sector development in a rapid, sustainable and efficient manner. The Provincial People’s Committee has set a target of 7,000 new enterprises by the end of 2026, including 3,050 to 3,275 household businesses converting to enterprise status.
Beyond numerical targets, the province aims to improve the overall quality and scale of the private sector, paving the way toward a broader goal of reaching about 65,000 enterprises by 2030. This shift is expected to enhance business performance and boost provincial budget revenues.
The province’s multi-faceted support will drive private sector development. - In the photo: Garment production at Hoang Trang Trading and Service Co., Ltd. (Long Mỹ Industrial Park, Quy Nhơn Tây Ward). Photo: T.Sỹ
* As the lead agency, what key measures is the Department of Finance prioritising to implement the plan?
- We follow the principle that “enterprise satisfaction is the measure of effectiveness.” To that end, we have streamlined business-registration procedures by digitising administrative processes, reducing the time for issuing new business-registration certificates from three days to about three working hours, and applying digital signatures to all registration results.
These reforms have delivered early gains: in January 2026, we issued certificates to 602 newly established enterprises—an increase of around 300% year-on-year—with registered capital reaching 4.058 trillion VND (≈162 million USD), up roughly 495%. New enterprises are exempt from registration fees, appraisal costs and initial licensing for conditional business sectors.
In parallel, we are working with other departments and local authorities to review household-business data and identify those eligible for conversion. We have issued coordination documents and are preparing guidance materials explaining registration procedures and the advantages of converting to enterprise status. Local People’s Committees are being advised to set up support teams to assist businesses in transition.
On 3 February, the Department of Finance, together with the Department of Industry and Trade and the Provincial Tax Department, met with authorities and businesses in Quy Nhơn and Quy Nhơn Nam wards to assess progress and gather feedback to refine upcoming support measures.
From the second quarter of 2026, we will guide the use of state-budget funds to provide free shared accounting software and training on business management, accounting and tax compliance. Management-skills courses will be organised for small and medium-sized enterprises that have converted from household businesses. We will continue urging relevant units to execute Plan No. 21 and report regularly to the Provincial People’s Committee.
Our goal is for 100% of household businesses to receive information and support on enterprise conversion, and for all newly converted enterprises to complete tax and registration procedures electronically quickly and conveniently.
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