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BANKING & FINANCE

at the helm or very close to it for decades. It nesses must change to respond to external
is common to see founders stay involved in factors, for example changing consumer pref-
the business way past retirement age.” erences and purchasing behavior or the entry
In continuing the more-than-50-year his- of new competitors, to capture opportunities
tory of the Tan My brand, Ms. Linh under- and mitigate risks.”
stands her mission comes on the heels of the Young family members, she recommended,
previous generation’s sweat and tears. “We should play an active role in professionalizing
must always remind our children and grand- the business, with support from emerging
children that the most important thing for technology solutions, to safeguard the busi-
continued success is to preserve and develop ness’s mission, vision, and strategies; align
the quality of our products and services,” she the expectations and direction of key stake-
believes. “There is a lot of competition in holders; develop strategies into actionable
business, but if your products are good and business plans; communicate effectively to
you respect your customers, they will definitely internal and external stakeholders; monitor
choose what you have to offer.” performance against targets; and, most impor- We have maintained
For Ms. Linh, an important element in tantly, create a mechanism to recruit, retain,
taking on the family business is that she loves and encourage talent. premium quality during
traditional crafts. “Since I have a great passion Any transfer of roles and responsibilities our more than 50 years as a
for embroidery, I work hard and persevere in is difficult, and even more so in a family busi- family business, and quality is
overcoming any and all difficulties,” she said. ness when the founders or older generation our identity. We have
“As a young person exposed to information are still very much involved in daily operations, expanded our traditional
technology and having travelled to many parts according Mr. Tin. “This can create the effect embroidery, making different
of the world, I have experienced the beauty of of having multiple bosses and multiple direc- types of products such as
people and different cultures, which help me tions and priorities within the company,” he
create new products that are suitable for the said. “Decision making and the delegation of homeware, fashion, and
modern world but still contain the identity of authority are also sticky points, and this is jewelry in various designs,
Vietnam as a nation, highlighting the beauty, different for every business. Creating low- from classic to contemporary,
art, and ingenuity of its handicraft artisans.” risk zones for the delegation of authority can while still retaining traditional
Being young is an advantage, as it comes allow successors to post early wins in the techniques.”
with a risk-taking appetite the older genera- succession process and then enlarge their
tions no longer possess, Mr. Tin said. “My circle of influence via proven success.”
youth also allows me to keep pace with tech- Ms. Linh also recognizes certain barriers MS. NGUYEN THUY LINH,
General Director
nology and be able to relate to the younger in the process of transferring business man- Tan My Fashion Design
demographic,” he said. “Such insights, along agement in a long-standing company like
with my ability to work longer hours and on Tan My Design, as the previous generation
weekends, give me the chance to drive Trung can be rigid, afraid to change, and have diffi-
Thuy forward.” culty trusting and supporting the plans of
Together with his elders, he has tried to the next generation. Once success has been
navigate the company through crises and attained, meanwhile, there may be other
build new growth pillars on top of existing professions and opportunities that require
foundations. “We breathed new life into our less work and sacrifice and heirs may be
design philosophy, crafting truly unique real tempted to move on. In order to achieve
estate projects that serve the needs of our real and lasting success, family members
premium customers,” he explained. “Our working in a family business must have a
upcoming project, Lancaster Legacy in District love for what they do.
1 in Ho Chi Minh City, which will be launched Having worked with some of the country’s
this year, reflects my new vision on design most prominent family businesses, Ms. Hao
and aesthetic and also TTG’s lasting philosophy sees that the younger generation are often
of craftmanship and attention to detail.” more positive about future growth and how
the business is performing financially, and
Major burden have a greater appetite for risk. “At the same I also realize that in
It is clear that there are different genera- time, they will face challenges from the legacy,” order to adapt, grow,
tional perspectives on a family’s level of she observed. “Many family businesses, big and become more competitive,
success. This is to be expected, as different or small, lack appropriate documentation we must retain the old while
generations think and operate distinct from that supports an effective transition, including
those who came before and those who come policies, procedures, the delegation of author- reinventing and bringing in
after. “Those currently in management have ity, and corporate knowledge.” the new. It is a delicate
experience and are confident in their roles,” The founding members of a business are balancing act, but successful
Ms. Hao from KPMG remarked. “The next usually the ones who continue to make all of execution makes it all
generation is coming through, they are learn- the important decisions, while the next gener- worthwhile.”
ing, they are uncertain, they are inquisitive, ation, in middle management, aren’t sufficiently
and they are in need of support. In all cases, trained in decision making, and so don’t own
leaders of family businesses need to define the outcomes. “The successors in a family busi- MR. NGUYEN TRUNG TIN,
CEO of TTG
success in both financial and non-financial ness must come out from the shadows of their
terms. When it comes to future growth, busi- predecessors,” she emphasized. %

JUNE 2021 | VIETNAM ECONOMIC TIMES | 13