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COVER STORY

TOP 5 PRIORITIES FOR THE NEXT TWO YEARS
Q Which, if any, of the following are the company’s TOP FIVE priorities for the next two years?

Digital, Innovation, Technology Expansion/Diversi!cation Evolving/New thinking Sustainability/Local community Other
Asia
Global Paci!c
Introducing new products/services 55% 50% 50%
Increasing use of new technologies 52% 49% 46%
Rethinking/changing/adapting the business model 52% 39% 43%
Expanding into new markets/client segments 48% 55% 57%
Improving digital capabilities 42% 52% 47%
Protecting our core business - covering costs/survival 42% 37% 46%
Increasing investments in innovation and R&D 33% 28% 30%
Increasing collaboration with other companies 24% 21% 26%
Reducing dependencies along the value chain 18% 11% 10%
Pursuing strategic acquisitions/mergers 15% 30% 26%
Increasing NextGen involvement in decision making/mgmt 15% 24% 20%
Increasing organization’s social responsibility 15% 16% 13%
Reimagining our approach to how we measure success 6% 10% 9%
Reducing organization’s carbon footprint 3% 15% 8%
Supporting local community via increased investment/activity 0% 8% 8%
Source: PwC, 2021

- size of the company and the complexity of the per cent of Vietnamese NextGen respondents
generation of leaders. Such planning includes to the PwC survey replied that they are con-
developing capabilities, tackling work chal- fident in their ability to help the family busi-
lenges, empowering the younger generation, ness adapt in the age of digital disruption.
and seeking support from personnel outside This closely aligns with the priorities of local
of the family. Some large family businesses in family businesses, which have identified dig-
Vietnam have followed a thorough succession ital, innovation, and technology as among
planning process, which can be even stricter the key priorities for the next two years. But
than elsewhere in Asia. The successor gener- only 30 per cent said they have strong digital
ation must be fully aware of the changes they capabilities. “NextGens can also offer fresh
face, which are mainly in terms of business insights and be active agents of change in
environment, methods to develop talented areas such as sustainability goals and the
staff from the same generation, and how to professionalization of management practices,” Tomorrow’s family
apply leadership capabilities in the new era. he went on. “In times of uncertainty, I would businesses require
Many may believe that the greatest barrier recommend that family businesses revisit a new approach for lasting
for the successor generation is generational their owner’s agenda to reassess the current
conflict in corporate governance, but the situation and determine in which direction success, one based on the
ability to drive and lead the next phase of they want the business to evolve.” increasing use of technology,
business growth is actually the most pressing Only 20 per cent of Vietnamese family the prioritization of
issue. Therefore, Mr. Nghia added, strategies firms have the ability to plan for a smooth sustainability goals,
must harmonize the old values and creativity transition, according to Mr. Nghia, and must and professional family
in the new context as well as the ambition deal with a successor crisis. “They are currently governance.”
to develop sustainably, instead of creating a dealing with complex multiple relationships
“vortex” of competition and conflict. and adjusting their business models to adapt
to change, with a family governance code of MR. JOHNATHAN OOI,
Private Business Services Leader at
For rising prosperity conduct in place for all members involved in PwC Vietnam
The events of 2020 definitely accelerated or related to the company’s interests,” he
the pace of change in the business world, said. “This code governs the distribution of
and what worked in the past is no longer power, the legal status of assets, and behavioral
sufficient to ensure success and sustainability. guidelines during tough times. The legacy of consensus from relevant family members. “No
“Tomorrow’s family businesses require a family businesses, including company assets, matter what form of family business it may
new approach for lasting success, one based intellectual property / know-how, and human be, it is necessary to balance various interests,
on the increasing use of technology, the pri- assets, should be examined, and principles with priority on empowering management to
oritization of sustainability goals, and pro- for proper behavior established.” absorb new cultures, create new values, attract
fessional family governance,” Mr. Ooi said. While not all Vietnamese family businesses talent, and adapt to digital reform,” he added.
A key area where NextGens can help is will see a successful transition, they should “Only with such a vision can family businesses
in the digital space. As “digital natives”, 55 set out priorities for business growth to gain reach new heights and be sustainable.” %

10 | VIETNAM ECONOMIC TIMES | JUNE 2021