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COVER STORY

Family businesses in Vietnam

NEWLY-ESTABLISHED TOTAL REGISTERED CAPITAL
55,800 15.4% year-on-year $33.8 billion 39.5% year-on-year
VIETNAM’S
ENTERPRISES
IN 5M 2021

NUMBER OF BUSINESSES
TOTAL WORKFORCE RETURNING TO OPERATIONS
412,400 1.3% year-on-year 22,600 3.9% year-on-year

Source: VCCI

Family businesses (FBs) are considered the backbone of many economies
throughout the world. In Vietnam, the top 100 FBs account for

25% of the country’s GDP.

Source: GSO

In Vietnam, PwC conducted online interviews with 33 FBs to gain an understanding of the key
issues currently at the top of their minds. Key ndings:

Vietnamese FBs are Technology and There is a shift Vietnamese FBs give
more willing to make new products and towards a more back to the community
a sacri ce than their services are top externally-managed but are not prioritizing
global peers of mind structure sustainable practices

79%
of Vietnamese FBs 55% In ve years’ time, 85% are engaged in some
of Vietnamese
Vietnamese FBs will
were more likely to make respondents will focus on become more diversi ed, form of corporate social
some form of nancial introducing new products with greater external responsibility activities.
sacri ce during Covid-19 and services, followed by management and greater This tends to involve
compared to 57% of their increasing their use of new NextGen involvement. contributions to the local
global counterparts.
technologies (52%). community or traditional
52% of Vietnamese FBs
say they will have a forms of philanthropy.
However, only 45% believe
second generation as
33%
of Vietnamese FBs Issues relating to sustainability majority shareholder. there is an opportunity for
are lower down in priority
Vietnamese FBs to lead
think they will post dynamic for Vietnamese FBs. This will be a sizeable sustainable business practices.
growth in 2022; higher than generational shift.
FBs surveyed regionally
and globally.
6 | VIETNAM ECONOMIC TIMES | JUNE 2021