Vietnam has about 5 million household businesses. Many operate like enterprises but maintain individual status to benefit from simpler procedures and lower flat taxes. However, from 2024, changes in tax policies, coupled with the need to expand markets, access capital, and sign larger contracts, are compelling many households to transition to enterprise status.

According to economic experts, this is not just a legal requirement, but also a strategic step to standardize operations, expand scale, and participate more deeply in the supply chain. However, many household businesses are concerned about working capital during the transition.

VPBank SME staff consulting a client. Photo: VPBank

VPBank SME staff consulting a client. Photo: VPBank

Recognizing this need, VPBank launched a 2,000 billion VND credit package at the beginning of 2025, prioritizing support for newly established enterprises, especially those transitioning from household businesses. The product package provides flexible working capital combined with tools to support financial and cash flow management.

The bank provides credit in two ways: unsecured credit up to 500 million VND (in the form of an overdraft limit or a business credit card) and secured loans with a maximum limit of 5 billion VND. The access conditions are practically designed, applying to business owners aged 27-60, with a good personal credit history, legal business registration, and transparent transaction accounts.

A highlight of the credit package is the "trial - monitor - increase limit" mechanism. The bank provides a small initial limit, then adjusts it based on operational data such as account transactions, issued invoices, and payment history. Businesses that integrate sales software or electronic invoices, such as Hilo, will be approved faster thanks to transparent data flow.

After the initial phase, VPBank continues to support businesses with tailored financial solutions for each industry, scale, and capital use purpose. The bank also provides free management tools: electronic invoicing software, an automated revenue-expenditure system, accounting software, and an integrated payment account package specifically for retail businesses, along with a 30% discount on balance notification speakers.

According to a VPBank SME representative, combining credit with cash flow management tools helps businesses not only survive but also develop sustainably from the very beginning.

"We don't just lend, we want to accompany our clients for the first one or two years as they transform from household businesses to true enterprises," the VPBank SME representative said.

Since 2021, VPBank has been deploying financial products specifically for transitioning household businesses. To date, over 9,000 customers have received capital in the initial phase, contributing to the more systematic development of the private economic sector.

(Source: VPBank)

In parallel with the credit package for transitioning businesses, VPBank is implementing the SME Startup product for all businesses established within 12 months, regardless of whether they originated as household businesses.

The SME Startup product has advantages:

: Approval in just 48 hours.

: Unsecured credit can be granted with transparent cash flow.

: Free electronic accounting software, invoice and reporting support.

: Free integrated payment solution account package for retail businesses and a 30% discount on balance notification speakers.

SME Startup is suitable for businesses in retail, services, F&B, logistics, import-export, or online businesses.