"Individual business households, or Ho Kinh Doanh, are small-scale operations owned and managed by individuals or families, typically without separate legal entity status in Vietnam. They operate widely across retail, services, and small production, forming a fundamental part of the local economy."
According to BBCIncorp's article, understanding the nature of Ho Kinh Doanh is essential to appreciating why Decree 68/2026/ND-CP was introduced and what it aims to address.
Vietnam's informal economy has long been shaped by the energy and adaptability of individual business households. From street-level vendors to family-run tailor shops and home-based food producers, these operators form the backbone of everyday commerce in cities and rural communities alike.
Unlike registered companies, Ho Kinh Doanh typically do not hold separate legal entity status. This means the owner and the business are legally inseparable, with the individual bearing direct responsibility for all obligations, including taxes. While this structure keeps administrative burdens low, it also creates challenges for consistent tax oversight at scale.
Their contribution to the economy is difficult to overstate. These households generate employment across sectors where formal companies rarely operate at the community level. They serve as critical links in local supply chains and provide goods and services that sustain daily life for millions of Vietnamese households. The informal reach of this segment means that any regulatory shift affecting them has broad economic consequences.
As e-commerce platforms, digital payment tools, and delivery services have expanded, many Ho Kinh Doanh have migrated online without formally registering their extended activities. This evolution has made it harder for tax authorities to track revenue accurately, prompting the reforms now codified under Decree 68/2026/ND-CP.
Understanding who these businesses are — and why they matter — provides the necessary context for appreciating the significance of this regulatory update. For a detailed examination of how Decree 68/2026/ND-CP affects this group, the full analysis is available in BBCIncorp's comprehensive article on the subject.
See details: https://bbcincorp.com/vn/articles/decree-68-2026-nd-cp#the-role-of-individual-business-households-in-vietnam
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