In the post-pandemic period, while some next generation (NextGen) leaders in Vietnam have problems with proving themselves in leadership positions, others prioritize business growth, PwC’s Global NextGen Survey 2022 pointed out.

Seventy-one per cent of survey respondents agree that family communications regarding the business increased during the pandemic; higher than the global rate of 56 per cent. Meanwhile, 42 per cent believe that communications between NextGens and the current generation is also stronger.

NextGen in Vietnam also focus on growth and technology. Fifty-three per cent prioritize business growth and 37 per cent see adopting new technologies as a key enabler to achieving growth. The participation of Vietnam’s NextGen in technology and digitization-related fields is higher than the global average in all four areas of adopting new technologies, enhancing digital skills, investing in research and development, and focusing on cybersecurity.

Local NextGen also pay attention to environmental and ESG (environment, social, and governance) issues. Sixty-eight per cent believe that their businesses should be responsible for fighting climate change and its impacts. Moreover, 58 per cent are interested in minimizing the impact of the family businesses on the environment in the future, while 45 per cent see an opportunity for their business to lead the way in sustainable business practices.

The move to embrace ESG-related goals will create shock waves for businesses, according to Mr. Nguyen Hoang Nam, Deputy General Director, Assurance Financial Services Leader, and ESG Leader at PwC Vietnam. “Or to put it simply, this move will not cause any conflict between profit and purpose,” he said. “Family businesses have a golden opportunity to see ESG as a matter of urgency - for the sake of the planet, people, and their own future success.”

However, succession in family businesses is still challenging. Sixty-one per cent of respondents have found it difficult to prove themselves as the new leader, with key reasons including the readiness of the current generation to let go and difficulties in discovering their own strengths and passions in the process.