This paper empirically examines the determinants of micro business start-up in Vietnam, with the emphasis on the role of remittances, using rich household survey data from 2002, 2004 and 2006. Using probit regression, this paper documents the positive and significant role of domestic remittances on the propensity to start up a new business. In addition, hhousehold and community characteristics also play a significant role in the entrepreneurial start-up process. Furthermore, we examine the role of remittances from the perspective of relaxing liquidity constraints for existing household businesses, finding that domestic remittances have played a role in boosting revenue growth between 2004 and 2006. In contrast, overseas remittances have neither role in stimulating the transition to entrepreneurship nor business growth. The findings are robust under various model specifications and estimation methods.