DRIVING FACTORS AND CHALLENGES FOR THE FORMALIZATION OF HOUSEHOLD BUSINESSES IN HO CHI MINH CITY, VIETNAM

Hoang Thi Thu Huyen (), Do Ly Hoai Tan () and Liang Emlyn Yang ()
Additional contact information
Hoang Thi Thu Huyen: Southern Institute of Social Sciences, Vietnam Academy of Social Sciences, Ho Chi Minh City, 70000, Vietnam
Do Ly Hoai Tan: Southern Institute of Social Sciences, Vietnam Academy of Social Sciences, Ho Chi Minh City, 70000, Vietnam
Liang Emlyn Yang: Department of Geography, Ludwig Maximilian University of Munich (LMU), Germany

Journal of Developmental Entrepreneurship (JDE), 2024, vol. 29, issue 04, 1-21

Abstract: Small household businesses are widespread in Vietnam and are increasingly important for employment and economic growth. However, many are run informally which hinders their growth and harms the country’s economy as well. We utilize logistic regression based on the 2017 Economic Census and 2022 field survey data of formalized firms in Ho Chi Minh City. The size of the household business, use of information technology and revenue transparency influence the intention to convert household businesses into formal enterprises. The transition process can be complicated by various factors such as a household business owner’s unpreparedness, concerns about complications, fear of higher tax payments, limited internal resources, uncertain economic benefits and management regulations that are unsuitable for sole proprietorships.

Keywords: Household business; formalization; enterprise; Ho Chi Minh City (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S1084946724500262
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:jdexxx:v:29:y:2024:i:04:n:s1084946724500262

Ordering information: This journal article can be ordered from

DOI: 10.1142/S1084946724500262

Access Statistics for this article

Journal of Developmental Entrepreneurship (JDE) is currently edited by Peter Koveos

More articles in Journal of Developmental Entrepreneurship (JDE) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().