Hanoi (VNS/VNA) - Economics experts has called for an independent law to be set upfocusing on household businesses.

Phan Duc Hieu, DeputyDirector of the Central Institute for Economic Management (CIEM), was speakingat a workshop in Hanoi on November 28.

Hieu supported theidea of releasing an independent law for household business – a unique businessmodel that exists in a few countries including Vietnam.

But in short term,that model should be managed by the Law on Enterprises, which was discussed atthe 14th National Assembly’s eighth meeting, he added. 

Hieu is also a memberof the writers group that compiled the draft of amended Law on Enterprises.

The model ofhousehold business is already mentioned in the existing Law on Enterprises andDecree 78/2015/ND-CP dated September 14, 2015 to ruling business registrationand management, he said.

“Basically, businesshousehold is a typical business model, so it must be monitored under a separatelaw, not a decree,” Hieu said.

The inclusion ofhousehold business management in the amended law will not have bad impact onhouseholds’ activities as they do not have to re-new their businessregistrations, he added.

It will help protecttheir rights and benefits better, foster them to reach full potential, andcreate a good environment for all Vietnamese businesses, he said.

“The group of lawwriters consider household business a rightful business model and it must betreated on a fair level with other types of business,” Hieu said.

“Household businessesmust be enabled to become a big part of the economy with sufficient legalrights, benefits and obligations,” he said, adding they will be admitted as apart of the growing economy and limits will be removed for them.

Dau Anh Tuan, head ofthe Vietnam Chamber of Commerce and Industry's Legal Department, saidthe model of household business has been managed by a decree for a long time,and it must be legalised by a law.

“Household businessis a unique model in Vietnam and the sector has grown very big now,” he said.

The GeneralStatistics Office during the NA meeting reported there are now a total of 5.2million households doing business, representing 30 percent of Vietnam’s totalproduction and creating ten million jobs.

“It is important thatwe don’t ignore the sector anymore. Limits must be removed to help householdbusinesses get access to resources,” Tuan said.

Other specialistsraised concerns about the risks that household businesses may face if they areregulated by the amended enterprises’ law.

According to CIEM’sformer director Nguyen Dinh Cung, if household business is regulated by theamended law or a separate law, it will be hard for government agencies to fullyexecute the regulations.

Family members willbe divided into different sides and legal rights will destroy familyrelationship. If worse, the sector will be ruined because households are nolonger free to do business in their own way./.