Vietnam’s next generation has great ambitions for growth: PwC

Highly ambitious and eager to take the lead, the next generation of family businesses in Vietnam see themselves driving their companies forward in a disruptive future but only with greater trust and empowerment from the current generation.

Vietnam’s next generation has great ambitions for growth: PwC

Representatives of startups and investors meet at Vietnam Startup Day 2019. Some 71% of the next generation in Vietnam are already engaged or planning to engage in their family business in the next five years

This is one of the latest findings from “PwC’s Global NextGen Survey 2019 – Vietnam in focus,” launched for the first time to showcase the voices of future leaders of family businesses in Vietnam.

The survey results revealed that nearly half of Vietnam’s NextGens (44%) already play an active part in their family business; this is much lower than the level of engagement recorded across the Asia Pacific region (73%) and globally (70%).

On a positive note, this is an encouraging number given that the great majority of NextGens in Vietnam are between 21 and 34 years old and a further 27% plan to be involved in their family business in the next five years – twice the global and regional ratios of 13%.

Looking ahead to deeper engagement, NextGens also hold high ambitions to lead change in their companies in the next five years. While 16% of Vietnam’s NextGens are executive directors today, the number is likely to more than double by 2025 to 38%.

These ambitions are supported by the fact that 60% of NextGens in Vietnam have confidence in their abilities to add the most value in professionalizing and modernizing the management practices in their businesses.

 

This is also their immediate top business priority in making their enterprises fit for the future, alongside upgrading their staff’s skills. It is apparent that as digital natives, the future leaders of Vietnamese family businesses are conscious of the role of technology and their own digital advantages.

With many years of experience in working with family businesses in Vietnam, Hoang Hung, entrepreneurial and private business leader from PwC Vietnam, remarked that succession can be a make or break event for any family business. To plan ahead, it is important to take into account hindrances and support factors from the perspectives of the leaders who are next in line.

“NextGens in Vietnam are anxious to prepare themselves for leadership in a more complex future. They share a great concern for developing experience and expertise and are looking to the incumbent generation to enable their full potential with trust and support,” he added.

However, their current prospects are still narrow, with only a third of them being given the opportunity to lead (compared with 52% of their regional counterparts), similar to the number of NextGens who can be heard and sought out as a sounding board for new ideas.

Vietnam NextGens perceive the top two major constraints holding them back from making their desired impact to be lack of experience (41%) and the current governance in their own family business (33%).

These constraints are stronger among NextGens in Vietnam than in the rest of the region and the world. This also corresponds with their reduced opportunities to lead.

 
 

Other News

.
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
Chubb Life Vietnam honored “Best Companies to Work for in Asia 2020”
BUSINESSicon  03/07/2020 

Chubb Life Vietnam has been recognized as one of the “Best Companies to Work for in Asia 2020” by HR Asia, the continent’s leading publication for Human Resources professionals.

Predatory debt collectors hustling on borrowed time
Predatory debt collectors hustling on borrowed time
BUSINESSicon  02/07/2020 

Debt-collecting businesses are to be banned in Vietnam as part of local government action to protect customers’ rights, with the upsurge of predatory lending services triggering heated debate and eroding public trust.

RCEP benefits on horizon for ASEAN
RCEP benefits on horizon for ASEAN
FEATUREicon  02/07/2020 

With the Regional Comprehensive Economic Partnership scheduled to be signed this November, doors will soon open to attract more investment and swell Vietnam’s trade with international partners.

Vietnam closes in on tech app tax avoiders
Vietnam closes in on tech app tax avoiders
BUSINESSicon  02/07/2020 

Apple and Google are once again under fire over tax avoidance in Vietnam, with none of their revenues from their app markets being retained in the country. However, a new law could soon enable local authorities to take their cut.

Drugmakers fight to attain approval
Drugmakers fight to attain approval
BUSINESSicon  02/07/2020 

Switzerland’s drug maker Novartis Pharma Services AG has announced a GMP qualification for Lek Pharmaceuticals d.d. within the scope of certification for medicines in Vietnam,

PouYuen lays off thousands  due to Covid-19 difficulties
PouYuen lays off thousands due to Covid-19 difficulties
BUSINESSicon  02/07/2020 

More than 6,000 workers of the Taiwanese company, PouYuen, in HCM City have been laid off due to the company's business difficulties during the Covid-19 pandemic.

Fitch Solutions revises up Viet Nam’s 2020 GDP growth
Fitch Solutions revises up Viet Nam’s 2020 GDP growth
BUSINESSicon  02/07/2020 

Fitch Solutions have revised up its 2020 real GDP growth forecast for Viet Nam slightly to 3.0 per cent, from 2.8 per cent previously.

Zalo Bank not licensed by SBV and MoIT
Zalo Bank not licensed by SBV and MoIT
BUSINESSicon  02/07/2020 

The State Bank of Vietnam (SBV) and the Ministry of Industry and Trade have affirmed that they have not licensed Zalo Bank to provide online built-in financial services.

EVFTA to come into effect in a month
EVFTA to come into effect in a month
BUSINESSicon  02/07/2020 

The EVFTA will abolish 65 per cent of the duties on EU exports to its developing partner, with the remainder phased out over a 10-year period.

Footwear sector to improve supply chain to take advantage of EVFTA
Footwear sector to improve supply chain to take advantage of EVFTA
BUSINESSicon  02/07/2020 

Vietnam’s leather and footwear industry should improve its supply chain performance to take advantage of the milestone trade deal that Vietnam has signed with the EU and to recover from the effects of the COVID-19 crisis, 

World Bank Vietnam has new head
World Bank Vietnam has new head
BUSINESSicon  02/07/2020 

From July 1, Ms. Carolyn Turk will work at the World Bank (WB) Hanoi office as its country director in Vietnam, according to the office.

China maintains position as Vietnam's largest import market
China maintains position as Vietnam's largest import market
VIDEOicon  02/07/2020 

Despite the first half of the year seeing Vietnamese export turnover to China only reaching a mere US$34.8 billion, China retained its place as the country’s largest import market, according to the General Statistics Office.

VN's rice exports bounce back after one-month interruption
VN's rice exports bounce back after one-month interruption
BUSINESSicon  03/07/2020 

While exports of many products have plunged because of Covid-19, rice exports are growing, with prices of some products reaching an 8-year high.

Will demand for corporate bonds become weaker because of a new law?
Will demand for corporate bonds become weaker because of a new law?
BUSINESSicon  02/07/2020 

Under the amended Enterprise Law ratified by the National Assembly on June 17, nonprofessional investors are prohibited from trading corporate bonds issued in private offerings from January 1, 2021.

Retail industry to face being "swallowed" once EVFTA comes into force
Retail industry to face being "swallowed" once EVFTA comes into force
BUSINESSicon  02/07/2020 

With the implementation of the EU-Vietnam Free Trade Agreement looming, besides providing opportunities, the Vietnamese retail market is anticipated to face numerous challenges, 

Vietnam sees greater budget transparency
Vietnam sees greater budget transparency
BUSINESSicon  01/07/2020 

Vietnam’s Open Budget Index (OBI) increased rapidly in 2019 compared to 2018, according to a survey released on July 1.

Vietnam to create “Miracle on the Red River” with implementation of Doi Moi 4.0
Vietnam to create “Miracle on the Red River” with implementation of Doi Moi 4.0
BUSINESSicon  01/07/2020 

The Vietnamese Government has made bold and reasonable decisions to fight against the COVID-19 pandemic and be proactive with comprehensive initiatives for economic recovery.

Administrative reforms would help unlock EVFTA's potential: EuroCham
Administrative reforms would help unlock EVFTA's potential: EuroCham
BUSINESSicon  01/07/2020 

 Administrative procedure reform is the key to unlocking the full potential of the Europe-Viet Nam Free Trade Agreement (EVFTA), said participants at a conference on Tuesday.

Nation’s economic forecast leads way
Nation’s economic forecast leads way
BUSINESSicon  01/07/2020 

With its success in fighting COVID-19, Vietnam has continued to be the best performer in Southeast Asia, laying a firm foundation for the country to attract more investment and spur on production.

HCM City seeks faster switch to cashless payment
HCM City seeks faster switch to cashless payment
BUSINESSicon  01/07/2020 

Nguyen Anh Duc, general director of Saigon Co.op, said the rate of cashless payment at its system, including Co.opmart, Co.opXtra, Co.op Food, and Co.op Smile, has increased sharply since last year from 3-5 percent to nearly 21 percent now.

 
 
 
Leave your comment on an article

OR QUICK LOGIN