Across the province, communes and wards have begun implementing Plan No. 21/KH-UBND, issued on January 20, 2026, with targeted measures to identify and assist eligible household businesses. So far, 64 out of 135 localities have rolled out the plan, including 42 that have established dedicated task forces.
In the first quarter of 2026, the province recorded 1,203 newly registered enterprises, a 114% increase year-on-year, with total registered capital reaching VND 13,055 billion (approximately $522 million), up 122%. All newly established businesses benefited from free registration, appraisal, and initial licensing fees, along with a three-year corporate income tax exemption.
However, only 44 household businesses converted into enterprises during the same period, highlighting a significant gap between policy ambition and implementation.
Local authorities have taken proactive steps. In Quy Nhon Nam Ward, officials reviewed 5,848 household businesses and identified seven with strong potential for conversion. The ward aims to transition 101 businesses this year by working closely with tax authorities and promoting sectors with high revenue, such as food services, pharmaceuticals, and medical equipment.
“We are ensuring tax policies are applied effectively while protecting the rights of both enterprises and household businesses”, said Le Cong Trinh, Vice Chairman of the ward’s People’s Committee.
In Quy Nhon Ward, where around 4,600 household businesses operate, officials estimate that about 40%, primarily retail shops and convenience stores, are well-positioned for conversion. Since the start of the year, 42 businesses have received training and guidance, with a target of supporting an additional 100 conversions.
Meanwhile, Bong Son Ward has set longer-term goals, aiming for 157 conversions annually through 2030. The ward projects private sector growth of 15–17% per year, with labor productivity rising by 7.5–8.5%.
Local leaders say improving awareness and fostering entrepreneurial confidence are key. Authorities are also prioritizing administrative reforms, better public services, and easier access to land, capital, and technology.
Business owners who have already transitioned report tangible benefits. One karaoke service operator in Quy Nhon Nam Ward said becoming an enterprise improved financial transparency and enabled easier access to capital, training, and business development support, while also enhancing brand reputation and competitiveness.
Despite these efforts, provincial officials acknowledge mounting pressure to meet 2026 targets of 7,000 new enterprises, including 3,050–3,275 conversions from household businesses.
“In the coming period, we will intensify efforts to urge localities to implement the plan while accelerating administrative reform and digital transformation in business registration”, said Dinh Huu Hoa, Deputy Director of the Department of Finance.
The department plans to issue a comprehensive handbook outlining procedures, documentation, and benefits of conversion, alongside organizing management training courses for small and medium-sized enterprises, particularly those newly established.
Progress reports will also be compiled to support further policy direction from the Provincial People’s Committee.
