On the streets of Hanoi and across the country, Vietnam's small businesses risk being left behind in a new era of private enterprise, observers say, while large existing firms could become like South Korea's chaebol conglomerates. (Photo by Yuki Kohara)

Vietnam's private sector revolution leaves small firms under a cloud

Experts see largest economy reforms in 40 years favoring big business

GOVI SNELL

July 10, 2025 23:38 JST

HO CHI MINH CITY -- In Vietnam, an army of mom-and-pop street food vendors fuels the country, young and old, selling staples like banh mi for less than a dollar per sandwich. This legion is also front and center for Resolution 68 -- part of the nation's biggest economic reform plans in four decades, designed to stimulate its private sector.

Like the 5 million household firms authorities estimate are operating informally in Vietnam, many street vendors don't pay tax and aren't officially registered as businesses, experts say. The time, red tape and potential earnings-hit involved in registering micro-firms that often operate without collecting or issuing receipts are seen bringing no benefit, only burden, they say.