Along with the city's growth, many family businesses have now entered a stage of generational transition.
F1 entrepreneurs - who laid the foundation from the difficult early days - are handing over the responsibility to the F2 and F3 generations - younger people who are better trained, have a global vision and a strong desire for innovation.
Return to take over the family business
More than 10 years ago, while still passionate about skydiving in the US after studying business administration, Kieu Ngoc Phuong received a short message from her mother in Vietnam, saying that her father's health was not good.
That message was like a career change, causing Phuong to immediately return home. From then on, Phuong and his brother Kieu Cong Binh began to participate more in the family business, Tan Thanh Container Company.
This business was established by Mr. Kieu Cong Thanh and Mrs. Tran Dieu Canh in the early 1990s, from a small mechanical workshop in Thu Duc City, Ho Chi Minh City.
While Mr. Thanh is busy in the market, orienting strategies and building relationships, Ms. Canh plays the role of "treasurer", taking care of finances and the home front.
Binh and Phuong, two children who studied abroad in the US, chose to return to Vietnam and participate in many different roles and positions to learn how to operate and understand every corner of the business.
Phuong recalls: "We couldn't avoid the times when we were impatient to assert ourselves. At that time, the company was like a wooden cart - old and sluggish."
The next generation like Phuong and Binh bring technological thinking, improve production processes, and marketing, while the founding generation contributes experience, strategic direction, and interpersonal support to build a network of relationships.
Complementing each other helps the previous generation confidently transfer power. Mr. Thanh has a clear point of view: "We must let the children develop themselves, not rely on the achievements of their parents."
"Family businesses have some unique advantages such as quick decision-making, openness among members... but the main challenge is balancing events, family responsibilities and business continuity," Phuong said, adding that this requires a clear plan for assigning and managing backup personnel to ensure uninterrupted operations.
Building a dream to reach out to the world with dad
In front of the desk of Mr. Le Viet Hieu (33 years old) - Vice Chairman of the Board of Directors, Permanent Deputy General Director of Hoa Binh Construction Group at its headquarters in Ho Chi Minh City - is a wooden chessboard.
Mr. Hieu said that whenever he has time, he often plays chess because this intellectual sport , like business activities, requires applying the tactics and strategies of each move to Hoa Binh's business activities, how to make one move but achieve many goals.
This young businessman is the youngest son of Mr. Le Viet Hai - chairman of Hoa Binh, a business with 37 years of development in Ho Chi Minh City.
Although he studied urban planning in the US, when he returned to Vietnam, Mr. Hieu spent two years working in the field of bank appraisal at an international bank to better understand the working environment outside, before "arriving" at Hoa Binh.
When he first returned, he took on the position of foreign market development director, in charge of the Myanmar market, building the business from almost nothing. Once he got used to the job, he took on more important positions in the corporation founded by his father.
"Working in Hoa Binh, I am clearly aware of the great responsibility towards my family, employees and partners, and consider it a positive motivation for me to try every day," said Mr. Hieu.
A product of Biti's Group, Ms. Quyen is continuing the family tradition with new aspirations and visions - Photo: TTO
"New wind" of traditional brand
With Ms. Vu Le Quyen (45 years old), the next generation of Biti's Group, continuing the family tradition brings new aspirations and visions. In particular, this 8X businesswoman plays a big role in innovating and modernizing Biti's product lines, marking a strong transformation of the brand closer to young people.
As the daughter of Mr. Vu Khai Thanh, the founder and leader of Biti's, Ms. Vu Le Quyen said that she was prepared quite carefully by her family along with her own dedication and passion for the shoe industry.
"From high school to college, I went to the factory to learn how to make shoes and experience the stages of making a shoe."
According to Ms. Quyen, during her 20 years working at Biti's, she has experienced most of the departments, many of which she has newly established and renovated so that they can operate more dynamically and professionally.
Ms. Quyen said that the pressure of carrying on the family business tradition comes from having to adapt and change with the times, from products, services, market approach, technology, thinking, working methods, company culture must all change because consumers and company personnel have also changed.
"We cannot keep the traditional way of doing things that is no longer suitable for Vietnam's development. What helps us overcome is the ability to adapt, the ability to accept challenges, withstand pressure, be patient and persistent to overcome challenges, along with creativity, the willingness to do new things, correct mistakes to find a path to success for the business," said Ms. Quyen.
According to PwC's Global NextGen Survey 2024, only 48% of NextGen in Vietnam clearly understand their roles and responsibilities in the business, lower than 53% of the current generation.
More than half (52%) of NextGens have difficulty understanding criteria for recruiting family members and selecting board/executive members, indicating a lack of transparency in family business governance.
NextGen Vietnam is striving to become an innovator, bringing breakthroughs to family businesses. However, nearly half (45%) of NextGen believe that the current generation does not have a comprehensive understanding of the opportunities from technological transformation, much higher than the global average (29%). The lack of consensus on innovation vision between the two generations becomes a barrier, creating a gap in thinking between generations.
Generation "inherited", not "inherited"
Sharing with Tuoi Tre, a private business services expert at a consulting group commented that the concept of "family entrepreneurs", meaning the whole family working towards the role of business, innovation, and sustainable development, is gradually replacing the business model that is only "family-owned".
Some companies have initiated generational transitions by giving F2s the opportunity to innovate within controlled boundaries, allowing the next generation room to experiment, but without compromising the old system.
But there are also business families that cannot advise each other, cannot transfer, and easily fall into conflict, fragmentation, and even lose control to shareholders outside the family.
Additionally, one of the biggest barriers to generational transition in family businesses is how the founding generation views their children as “inheritors” rather than “successors.”
Meanwhile, if they are seen as companions in terms of vision, responsibility and authority, F2 will be more proactive, thereby naturally forming the ability to inherit. This is the process of "inheritance" rather than "inheritance" and is also the key step to help family businesses move from an emotional operating model to a standardized organization, ready to face all competition.
After 50 years, Ho Chi Minh City has integrated and developed sustainably - Photo: TU TRUNG
Continuing the journey of innovation
After the liberation day of April 30, 1975, amidst the myriad of difficulties of the changing economy, many households in Saigon - Ho Chi Minh City started small, spontaneous businesses.
In conditions of material scarcity and a heavily subsidized economic mechanism, they started with resilience and creativity: from grocery stores, small craft workshops, food factories to traditional service establishments such as garment, printing, and health care.
Mr. Bui Ta Hoang Vu, Director of the Department of Industry and Trade of Ho Chi Minh City, said that we often talk about "internal capacity" - the greatest internal capacity of the city has been proven to be the business community. They are the foundation and driving force for Ho Chi Minh City to integrate and develop sustainably.
After 50 years, the city is witnessing a generational transition in leadership in private and family businesses. Unlike their fathers and grandfathers who started their businesses from scratch during difficult economic times, the generation of entrepreneurs taking over existing foundations is ready for a new phase of development.
According to Mr. Le Viet Hieu, trust among family members helps to share information conveniently and achieve goals quickly, without being concerned about personal responsibility. With a solid educational background and diverse work experience, Mr. Hieu has gradually taken over the leadership role, working with the executive board to help Hoa Binh overcome many market challenges.
In the long term, Mr. Hieu said he will work with Hoa Binh to expand internationally. He is currently working hard to build an international organization and team, learning from the experiences of large corporations around the world to prepare for the journey to expand to the big sea.
Meanwhile, Kieu Ngoc Phuong believes that the two generations complement each other, creating a combined strength. "In case of differences of opinion, the final decision is made by the chairman of the board of directors, in compliance with the company's charter and for the best interests of the business," Phuong said.
The three generations of the Kieu family maintain the habit of regularly meeting and having dinner together as a way to strengthen family ties and discuss work matters frankly. This is also a familiar feature in many family businesses, where family and work matters are intertwined.
As the next generation of entrepreneurs, Ms. Vu Le Quyen has great expectations for Biti's, wishing to bring Biti's to Asia, creating a mark as a humane and inspiring Vietnamese brand with the "mission of cherishing everyone's happiness".
The aspiration of young entrepreneurs is not only to maintain the family business, but also to expand the stature of Vietnamese brands to the region and the world.
It is the dream of "made in Vietnam" brands appearing on the global economic map, competing fairly with multinational corporations, inspiring the world with modern and proud Vietnamese values.
Source: https://tuoitre.vn/suc-song-moi-cua-doanh-nghiep-gia-dinh-tren-vai-nhung-nguoi-thua-ke-20250427090836655.htm
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