Vietnam has about 5.2 million household businesses that contribute as much as 30% of GDP and employ tens of millions of people, according to the Ministry of Finance. Despite their importance, they are the group least able to borrow from banks, because they lack formal accounts and collateral. In 2026 that is changing as two trends meet: tax reform and the rise of digital lending.
Tax reform: from lump-sum to self-declaration
- From 1 January 2026, the lump-sum tax method ended; household businesses now declare and pay tax based on actual revenue.
- The revenue threshold below which no VAT or personal income tax is due was raised to VND500 million a year. Revenue above it is taxed at low rates, for example 0.5% for distribution of goods and 2% for services.
- The business licence fee was abolished from 1 January 2026 under Resolution 198/2025/QH15.
- Retail and consumer-service households with annual revenue above VND1 billion must issue e-invoices generated by cash registers connected to the tax authority.
These changes follow Resolution 68-NQ/TW on private-sector development: more transparency, a fairer playing field and incentives for household businesses to grow into companies.
Transparent data unlocks digital credit
When revenue is recorded through sales software and e-invoices, digital banks can score credit on real cash flows instead of collateral. Since October 2026, digital bank Cake has partnered with sales-management platform KiotViet to lend up to VND300 million to household businesses. Cake earlier offered loans through MISA Lending, a platform that connects borrowers with lenders. In five years MISA Lending has linked 16 financial institutions with more than 400,000 businesses and household businesses, disbursing around VND40 trillion in total. Its approval rate of 36.2% is roughly ten times that of traditional unsecured lending channels.
What it means for the economy
- Less reliance on informal lenders: households can borrow quickly to restock for peak seasons at transparent costs.
- A fairer, broader tax base: tax follows real revenue, while small households below VND500 million are exempt.
- Growth for banks and tech firms: millions of households form a new market for lending, payments, e-invoicing and accounting software.
- Support for domestic consumption: more working capital helps households expand, adding to the 9.01% growth recorded in the first nine months of 2026.
Points to watch
The transition requires households to get used to declarations and digital tools; tax authorities and local governments have rolled out hands-on support programmes. For lenders, managing the risk of small unsecured loans remains essential.
vietnamii.com view: ending the lump-sum tax is more than a tax change: it creates a "digital financial record" for millions of household businesses. That is a major step for financial inclusion and a growth opportunity for banks and fintech companies in the years ahead.