New dawn for family businesses: Heirs leading the charge in Ho Chi Minh City

The first-generation entrepreneurs, who laid the foundation during difficult early years, are handing over the reins to the second and third generations.

These younger heirs, equipped with formal education, global perspectives, and strong ambitions for innovation, are now taking their family businesses to new heights.

Returning to take the helm

More than a decade ago, while pursuing a passion for skydiving in the United States after studying business administration, Kieu Ngoc Phuong received a brief text from her mother in Vietnam, saying that her father’s health was unstable.

That message became a turning point in her life, prompting her to return home.

Along with her brother, Kieu Cong Binh, she joined the family business, Tan Thanh Container Company.

Founded by her parents, Kieu Cong Thanh and Tran Dieu Canh, in the early 1990s, the company began as a small mechanical workshop in Thu Duc under Ho Chi Minh City.

While her father focused on market engagement and building strategic relationships, her mother took charge of finances and necessary support.

Both Phuong and Binh, who had studied abroad in the United States, returned to Vietnam and assumed various roles to better understand the ins and outs of the business.

Phuong recalled the challenges of their early days, “There were times when we were eager to prove ourselves. Back then, the company was like an old wooden cart—slow and outdated.”

The younger generation brought fresh technological perspectives, streamlined production processes, and modernized marketing strategies, while the founding generation contributed their experience and strategic vision.

This complementary dynamic enabled a smooth transition of power.

"We must allow the younger generation to rise on their own as they cannot rely solely on the achievements of their parents,” said Thanh.

Phuong shared that family businesses have their distinct advantages, such as quick decision-making and open communication between members.

However, she emphasized that the challenge lies in balancing family events with ongoing business operations.

“It requires clear assignments and a robust human resource management system to ensure smooth continuity,” she explained.

Building global dream with father

Le Viet Hieu, 33, vice-chairman and deputy CEO of Hoa Binh Construction Group, based in Ho Chi Minh City, shared that he often reflects on his work through the game of chess—a strategic game, much like business, where each move has multiple objectives.

Hieu is the youngest son of Le Viet Hai, chairman of Hoa Binh, which has flourished for 37 years in the city.

After studying urban planning in the U.S., Hieu spent two years working in an international bank to understand the external business environment before joining Hoa Binh.

Initially, he worked as the director of the international market division, responsible for the company’s business operations in Myanmar.

As his understanding of the business deepened, he took on more significant roles in the family business, founded by his father.

“Working at Hoa Binh, I am acutely aware of the responsibility I carry for the family, employees, and partners, and I use that as the motivation to give my best every day,” he said.

Fresh breeze for traditional brand

For Vuu Le Quyen, 45, inheriting the legacy of Biti’s Group has meant modernizing its offerings while maintaining the essence of the family’s shoe-making tradition.

As the daughter of Vuu Khai Thanh, the founder of Biti’s, Quyen has played a key role in revamping the company’s products, making them more appealing to younger consumers.

She recalled that from her high school days onward, she was deeply involved in the company, learning every aspect of the shoe-making process.

“During my 20 years at Biti’s, I have worked in virtually every division, many of which I helped to set up and restructure to operate more dynamically and professionally,” Quyen said.

She admitted the pressures of continuing the family’s business legacy come with the need to adapt and innovate.

“We can’t cling to outdated methods that no longer align with the development of Vietnam," she said.

“What has helped me is adaptability – the ability to accept challenges, endure pressure, and stay creative. 

"Mistakes are part of the journey, but we learn from them."

According to PwC’s 2024 Global NextGen Survey, only 48 percent of the NextGen (second-generation heirs) in Vietnam had a clear understanding of their roles and responsibilities within the business, which is lower than the 53 percent for the current generation of leaders.

Additionally, more than half (52 percent) faced challenges in understanding how to select family members for leadership roles or boards, pointing to a lack of transparency in family business governance.

Despite these hurdles, the NextGen in Vietnam is eager to be a force for change and drive innovation in their family businesses.

Yet, 45 percent of them believe their predecessors lack a full understanding of the opportunities that technology transformation can bring. This generational divide over the vision for innovation presents a barrier to progress.

A private business service expert told Tuoi Tre (Youth) newspaper that the concept of ‘family entrepreneurship’ is gradually replacing the traditional idea of a family-owned business, where all family members align their efforts for growth, innovation, and sustainability.

Some companies have begun transitioning leadership by allowing the second generation to explore creative ideas within controlled boundaries, ensuring that the older generation’s foundations remain intact.

However, in other cases, familial conflict or lack of unity in vision can lead to fragmentation and loss of control to non-family shareholders.

One of the biggest obstacles in succession planning is the way the founding generation perceives their children—not as true successors but merely as heirs.

If these younger members are viewed as partners, sharing responsibility and vision, they can more naturally develop the capabilities to take over.

This shift from being ‘heirs’ to becoming 'successors' is crucial for transforming family businesses into more structured organizations that are ready for future challenges.

Journey of renewal continues

After the reunification of Vietnam in 1975, many families in Ho Chi Minh City started small businesses amidst the challenges of a transitioning economy.

Despite limited resources and a heavily centralized economic system, they ventured into commerce with resilience and creativity—opening small grocery shops, workshops, food factories, and traditional services like tailoring, printing, and healthcare.

Bui Ta Hoang Vu, director of the Ho Chi Minh City Department of Industry and Trade, said that the most significant internal strength of the city lies in its business community.

These entrepreneurs have been a cornerstone for the city’s integration and sustainable development, he stressed.

After 50 years, the city is witnessing a generational shift in leadership within private family businesses.

Unlike their predecessors, who built businesses from scratch during difficult economic times, the new generation inherits established foundations and is ready to lead in a new phase of growth.

Le Viet Hieu believed that the trust among family members facilitates the smooth sharing of information and helps achieve goals efficiently.

With a solid education and diverse work experience, he is taking on a leadership role at Hoa Binh, guiding the company through market challenges and preparing it for global expansion.

Meanwhile, Kieu Ngoc Phuong is confident that the complementary strengths of the two generations will drive the business forward.

"In cases of differing opinions, the final decision is made by the chairman of the board, in accordance with the company’s charter and for the greater good of the business," she said.

The Kieu family maintains a strong tradition of regularly gathering for family dinners, discussing business matters openly. This is a hallmark of many family businesses, where work and family life often intertwine.

As the next generation, Vuu Le Quyen harbors great aspirations for Biti’s, aiming to expand the brand across Asia and establish it as a humanistic Vietnamese brand that inspires with its mission to cherish the happiness of everyone.

As the successor generation takes on more prominent roles, they are driven not just to preserve their family legacy, but to elevate Vietnamese brands on the global stage.

This shared vision of expansion and innovation is the dream of the new generation of Vietnamese entrepreneurs—a dream to bring ‘made-in-Vietnam’ brands to the global economic map.