The Formality Status and Operation Efficiency of Vietnam Household Business in Post Covid-19 Pandemic

Our paper using a survey conducted by the VEPR and the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV) with 1016 observations across 8 economic regions across the country in 2021, selected randomly based on individual customers. Since most household businesses are located in cities, the number of workers in these locations is also higher than in rural areas. There are numerous business areas, but they primarily deal in wholesale, retail, and repair of automobiles and motorcycles. Based on our analysis, the form of household business has an impact on household business performance, and informal business households earn less than those in the formal sector. More than 50% of surveyed household businesses believe that formal enterprises have more advantages than informal ones, while above 38% are afraid of transforming into businesses due to the cost and registration procedures. Although the firm’s size has a good impact on household revenue, overusing expansion base on a capital scale will result in a decline in efficiency. Therefore, sustainable growth of household business needs more innovation, technology change.