The generation of entrepreneurs inheriting from many of the country’s large economic corporations is increasing, starting the journey to build Vietnamese businesses that will last over time.

Well-trained, dynamic, and responsive

The first similarity of the second generation of entrepreneurs is that they were prepared for the family’s path of succession. They were oriented and trained in professions related to business operations at famous universities around the world and then gradually joined the company’s work. After a long process, many challenges were passed on to them. For example, the case of the eldest son Truong Manh Linh of the founder of Tan Long Group. After 7 years of studying abroad in Australia, he returned to Vietnam in 2014 and started working at the group from port delivery, in contact with logistics. After that, he continued to work as an office worker, taking care of documents and all office work. Step by step, he moved to work as an international business staff specializing in importing goods into Vietnam… It was not until 2022 that Mr. Truong Manh Linh began to take over the rice sector and is currently managing the entire rice business of Tan Long Group .

Evaluating his successor, Chairman of Tan Long Group Truong Sy Ba said that his son is doing very well, perhaps even better than he did. “Young people are dynamic, quick-witted, receptive to information and new technologies. Strategy and vision may not be as good as those of their predecessors, but if they build a detailed plan for each action, they will do very well,” Mr. Truong Sy Ba commented and compared: Founders and start-ups have stronger endurance because they are the ones who take the lead from the beginning.

Business involves individuals, families and many people involved, so the founders are more daring, determined, dedicated and committed. The successors have less of these factors. But in return, the next generations inherit the history of formation, development, processes, apparatus and available team. In particular, the business has passed the start-up stage and is operating stably and systematically. The second generation has the advantage because of the available potential, even if they fail, they can continue because the resources are still there. Moreover, they can learn from the experience of their predecessors.

At ABC Bakery, all three children of the founder and General Director Kao Sieu Luc, daughter Kao Huy Phuong, daughter Kao Huy Minh and youngest son Kao Hon Phong, are participating in the company’s core operations. All three were trained abroad, were instilled with a passion for traditional crafts and joined forces to take the bakery brand further. In particular, Kao Huy Phuong is in charge of foreign affairs and business; Kao Huy Minh is in charge of internal affairs and human resources; and Kao Hon Phong is in charge of engineering and technology.

Evaluating his three children, Mr. Kao Sieu Luc said that each person’s job was arranged based on their own personality and strengths. Among them, the eldest sister, Kao Huy Phuong, studied food technology in Singapore. Thanks to her excellent academic performance, Phuong was awarded a scholarship by the Singapore government and kept working. It was her father, Kao Sieu Luc, who had to rack his brains to convince his daughter and “compete” with the Singapore government to bring his daughter back to work at the family company. When Kao Huy Phuong returned, she took over the business and opened the export market from zero for the company. Up to now, export sales have accounted for 35 – 37% of total annual revenue.

The successors at ABC Bakery are always dynamic, sensitive to the market, and dare to think and dare to do. But in the process of working together, Mr. Kao Sieu Luc believes that there is always “pressure” between the previous generation and the younger generation, the successors. Currently, even though he is the predecessor, he cannot impose. To balance between family and work relationships, he always listens and discusses to find the best solution together. Or sometimes he also has to play the role of “referee” to determine the advantages and disadvantages of the opinions of his children and then together choose the optimal solution to implement.

“I was lucky to convince all three of my children to join the company. But the process of working together also has a lot of pressure. The older generation like me cannot impose because it is not certain that all of our thoughts and decisions are correct. The younger generation has many advantages, most clearly in catching up with market trends, applying technology faster, changing and adapting to fluctuations in the domestic and foreign economy in a timely manner,” Mr. Kao Sieu Luc shared.

Accept the fall, confidently transfer

In many businesses, successor leaders are given power quite early. More than 10 years ago, Chairman of the Board of Directors of Asia Commercial Bank (ACB) Tran Hung Huy was appointed to this top position at a relatively young age. Since then, he and his colleagues have led ACB to strong development, continuously increasing profits and assets, becoming one of the leading commercial banks in Vietnam.

In the agricultural sector, Thanh Thanh Cong Sugar Company is known to belong to the family of businessman Dang Van Thanh and Ms. Huynh Bich Ngoc. For many years, the daughter of the business couple, Dang Huynh Uc My, has participated in the management of Thanh Thanh Cong’s member companies and is the Vice Chairwoman of the Board of Directors of the group. Most recently, since mid-July, Ms. Dang Huynh Uc My officially became the Chairwoman of the Board of Directors of Thanh Thanh Cong – Bien Hoa Joint Stock Company, the largest sugar company in Vietnam, replacing her mother, Ms. Huynh Bich Ngoc. This young businesswoman held the position of Chairwoman of Thanh Thanh Cong – Tay Ninh Sugar Company from 2012 to 2015.

According to Mr. Kao Sieu Luc, founding a company but not building a successor team will not have the motivation to develop. Currently, he has handed over 80% of the work to his 3 children. Next year, when he turns 70, he plans to hand over 100% of the business and work to the next generation. Because he is confident that the next generation will take the company forward, continue to promote its inherent advantages and apply new technology and new thinking. The “King of Bread” emphasized that the transfer is accepting risks, accepting mistakes and will not interfere in anything. Not all views and decisions of young people are completely correct. Then there will be answers from reality. But if there are no challenges, accepting failures, how will the successor know how to move forward? So when will the predecessor dare to let go and the successor mature? He is confident that his successor generation will continue to develop the business further, passing it on to future generations.

Sharing the same view, according to Mr. Truong Sy Ba, the transferor and founder must train the next generation in willpower and determination, must show them that nothing is easy and that they are not afraid of failure. In particular, when transferring power, they should not interfere too deeply or too much, let them decide and take responsibility for themselves. Every time there is a mistake, they will learn their own lessons and grow up firmly. There must be trust to truly transfer power. The transferor only gives the overall strategy of the whole group, then stands far away to observe and advise if necessary, no longer holding hands. Of course, depending on each specific period, there will be certain frameworks. For example, when the work is just handed over, the right to decide is 10 billion VND without asking for opinions. After a few more years, they can decide on 50 billion VND, and then gradually increase it… There is a roadmap for them to gradually accept the challenge.

“Of course, the shadow of the leader before the transfer will still be large. When the transfer begins, the shadow will still be there, but gradually, you yourself must be the one to erase that shadow, so that you can make the complete decision. Even in the case that you make the wrong decision, do not rush to intervene. Instead, just encourage and motivate them to continue to stand up and do it again,” Mr. Truong Sy Ba shared more.

Economist, Associate Professor, Dr. Vo Dai Luoc, former Director of the Institute of World Economics, said that in the world, there have been family corporations that have developed for hundreds of years. These are fashion and automobile empires in France, the US, Japan or chaebols (family corporations) in Korea. Although Vietnam does not have long-standing corporations due to historical issues, it will certainly have Vietnamese family brands that will last along with the country’s economic development.

Family corporations themselves must first train a successor team capable of taking over the company and making the business stronger. However, in the history of corporations around the world, even if there is no successor to sit in the leadership position, the owner can still hire outside management personnel. Thus, the most important issue depends on the vision and long-term strategy of the successor generation with the determination and aspiration to make the family business stronger.

Associate Professor, Dr. Vo Dai Luoc emphasized: Currently, Vietnam has been more open in developing the private economy, recognizing the role and encouraging private enterprises. It is expected that in the coming time, macro policies will continue to bring incentives to promote the private economy to develop more strongly. Along with the position, economic development of Vietnam and the advantages and available foundations of the successor team, family businesses will grow stronger and become truly influential family corporations in the region.