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Congratulations on Portugal Day
COVER STORY

Passing the baton

Vietnamese family businesses must properly deal with the challenges inherent
in the succession process in order to thrive in the modern era.

T KHANH CHI REPORTS

ost Vietnamese family businesses substantial and growing force in the devel- the last ten years, according to Mr. Huynh
have expressed confidence that opment of the economy and communities.” Phuoc Nghia, Senior Consultant at Global
M their companies will recover from Integration Business Consultants (GIBC).
Covid-19 and post growth in 2021, according Leveraging factors “When examining the lessons learned from
to PwC’s Family Business Survey 2021, Viet- Family businesses are a major component developed countries like Singapore, Japan,
nam Report. Sixty-five per cent said they are of Vietnam’s small and medium-sized enter- and South Korea, it is clear that the role of
optimistic about their growth prospects and prise (SME) community and private sector, family businesses will continue to thrive,” he
three out of four view 2022 as being even and make substantial contributions to national said. “Considered the oldest business model
more positive despite the lingering uncer- GDP and job creation. This was backed recently in the world, family businesses have always
tainties. “The recovery and success of family by the Vietnam Chamber of Commerce and played a pivotal role and generally account
businesses post-pandemic will not just be Industry (VCCI), which noted that 95 per for more than 60 per cent of all enterprises.
for their own benefit but also for the national cent of Vietnamese enterprises are family- They contribute to the development of a
economy’s benefit,” said Mr. Johnathan Ooi, owned and top 100 account for some 25 per country’s dynamic and creative economy, and
Private Business Services Leader at PwC Viet- cent of the country’s GDP. in terms of global integration also help preserve
nam. “Very few things are certain in terms of There are only about 50 large private the national culture.”
what the economy will look like in a few enterprises on the stock exchange and most The motivation for family businesses orig-
years’ time. But one thing we can be sure of are family-owned and considered to have inates from their founders’ entrepreneurial
is that family businesses will continue to be a “truly transformed” in terms of scale over spirit, and in order to overcome the initial

8 | VIETNAM ECONOMIC TIMES | JUNE 2021