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Why do household businesses in Vietnam stay informal?

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  • Thi Bich Tran
  • Hai Anh La

Abstract

Using unbalanced panel data from the small and medium enterprise surveys in Vietnam in 2005, 2007, 2009, 2011, 2013, and 2015, this paper investigates factors associated with informality in Vietnam. We assume that household businesses, especially the top tier firms, become formal either because they perceive benefits of formalization such as an increase in the household performance, or because they want to escape bribes and harassment.

Suggested Citation

  • Thi Bich Tran & Hai Anh La, 2018. "Why do household businesses in Vietnam stay informal?," WIDER Working Paper Series wp-2018-64, World Institute for Development Economic Research (UNU-WIDER).
    • Handle: RePEc:unu:wpaper:wp-2018-64
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    References listed on IDEAS

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