In Hanoi, a tea business has expanded into a range of tea-related activities, while continuing to operate as a household business. At its current scale, this model allows the owner to maintain relatively simple operations while gradually growing the business.
Bui Thi Ha Phuong, owner of ZenCha – FangCha, said: "For now, I still find the household business model suitable because our business is relatively small, allowing us to grow gradually while staying compliant. Recent government guidance and tax incentives have also made the model more accessible. I would consider transitioning to a company when we grow larger and need more corporate contracts, invoices and formal procedures".
At another tea business, operations have expanded from tea cultivation and production to retail, with sales channels targeting international businesses. As the business grew, the owner transitioned from a household business to an enterprise.
Nguyen Hoang Linh, CEO of Blossom Ritual, said: "Our corporate and international customers have strict requirements for quality and consistency. That's why we established a company and professionalized our operations, standardizing everything from sourcing and production to packaging and customer service. Local authorities also supported us with legal procedures, helping us reach consumers more efficiently."
The two businesses operate in the same field of tea production and sales, but have made different choices. The difference lies not only in their registered business models, but also in their scale, development goals and ability to meet management requirements.
Dr. Bui Thi Men, Head of Taxation and Public Finance Department, Faculty of Finance, Banking Academy of Vietnam, said: "Household businesses vary in size and development goals. Smaller businesses with stable markets may remain household businesses, while those seeking to expand may benefit from becoming companies. Policies should therefore keep compliance simple for smaller businesses while reducing conversion costs and procedures for those ready to grow. Recent tax policies and wider use of e-invoices are also creating a clearer framework for household businesses to operate and expand".
In Hanoi, 1,151 household businesses transitioned into enterprises in the first six months of 2026, up 27 percent year on year. The city also recorded 21,600 new enterprises in the first seven months, an increase of 15 percent. These figures reflect growing business activity and a shift towards formalisation. However, the broader goal is to help businesses grow sustainably, improve compliance and choose business models suited to their needs.
