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Most Vietnamese family businesses optimistic about growth prospects

Most Vietnamese family businesses optimistic about growth prospects

A survey finds 63 percent of Vietnamese family businesses confident that their companies will recover from Covid-19 impacts and grow strongly in 2021. – VnExpress International

Most Vietnamese family businesses optimistic about growth prospects

Laborers work at an assembly line to produce ventilators at Vsmart factory of conglomerate Vingroup outside Hanoi, August 3, 2020. Photo by Reuters/Kham.

However, this figure is a bit lower than the Asia Pacific and global average of 65 percent and 64 percent, respectively, according to a survey conducted by PricewaterhouseCoopers (PwC), which interviewed 2,800 family business leaders in 87 economies, including 33 from Vietnam.

For 2022, 33 percent of surveyed family business leaders from Vietnam expect quick, aggressive growth, higher than the regional average of 28 percent and the global figure of 21 percent.

Business expansion and technology adoption are the key priorities of Vietnamese family businesses in the coming years, the survey found. While 55 percent said they would focus on creating new products and services, 52 percent mentioned increased use of new technology.

Over half (52 percent) of the Vietnamese respondents expect that the next generation to become majority shareholders within five years’ time, but just 36 percent said they have a formal succession plan in place.

Vietnamese family businesses seemed to lag behind in terms of digital capabilities, with just 30 percent saying they were strong in this area against the global average of 38 percent.

Family businesses are a core economic factor in any country, including Vietnam. The 100 largest family businesses contribute about 25 percent of the country’s GDP, Vu Tien Loc, Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), has noted.

Among the 50 best listed companies in Vietnam are many family businesses, including Vietnam’s biggest listed company Vingroup, budget airline Vietjet Air, major education company Thanh Thanh Cong, and Vietnam’s largest ice-cream producer Kido.

As many as 95 percent of Vietnamese enterprises are family businesses and the majority are led by the first generation or the first two generations, he added.

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