Vietnam family businesses face generational leadership transition

Vietnamese family-owned corporations are currently undergoing a significant generational leadership transition. Major groups such as Vingroup, Novaland, ACB, TTC AgriS, and REE are witnessing shifts in management as the first generation (F1) takes over from the founders (F0).

Experts note that F1 successors face unique pressures compared to professional CEOs. They must prove their competence to their families, management teams, and the market while overcoming the stigma that their positions are based solely on lineage. A notable example is Pham Nhat Quan Anh, who has assumed the roles of Chairman and Global CEO of VinFast, succeeding Pham Nhat Vuong.

To ensure successful transitions, experts suggest a decade-long planning process involving competency building, practical challenges, and external support. Currently, only approximately 20% of family businesses in Vietnam are reported to have smooth succession planning in place.