The decades following the end of the Vietnam War, Vietnam’s economy was marked by hardship and central planning. However, sweeping reforms under Đổi Mới transformed the country into one of Southeast Asia’s fastest-growing economies.

Family-run enterprises played a major role in this transformation. Often founded in the late 1980s and 1990s, these businesses grew rapidly in sectors such as manufacturing, real estate, retail, and agriculture. Many were built by first-generation entrepreneurs who relied on personal networks, resilience, and hands-on leadership.

Today, Vietnam is increasingly seen as a rising economic power in Southeast Asia, attracting foreign investment and integrating into global supply chains.

Now, after decades of growth, many founders are reaching retirement age. Their companies must transition to younger leaders—often their children who have been educated abroad and exposed to modern management practices.

“Succession planning here is still very poor. It’s very emotional… different expectations because of generational gaps,” said Cuong Dang, chairman of Vietnam Vanguard, a network of executives.

Experts note that many Vietnamese firms lack formal governance structures. Decisions are often centralized in the founder, leaving little room for structured leadership development or transparent succession planning. 

The new generation of leaders tends to bring different perspectives. While founders emphasize loyalty, trust, and intuition, younger successors often push for digital transformation, corporate governance reforms, and international expansion. This difference in mindset can create friction within families and organizations. Communication gaps, sometimes described as “different languages” make it harder to align on long-term strategy.

In some cases, heirs are reluctant to take over businesses built under very different economic conditions. Others struggle to gain the trust of employees who remain loyal to the founding generations. Without clear succession plans, businesses risk instability during leadership transitions. This can affect investor confidence, employee morale, and long-term competitiveness.

Analysts warn that poorly managed transitions could slow Vietnam’s economic momentum, especially given the importance of family firms in driving employment and innovation.

At the same time, successful transitions could unlock new growth. Younger leaders are often more open to partnerships, technology adoption, and global markets—key factors for competing internationally.If handled well, this generational transition could mark a new “era of national rise,” strengthening Vietnam’s position in the global economy. If not, it risks exposing deep structural weaknesses in one of the country’s most important economic pillars.

As Vietnam continues its rapid development, the success—or failure—of these succession efforts will likely determine how far its family enterprises can go in the decades ahead.