PwC’s NextGen Survey 2024 - Vietnam report
Succeeding in an AI-driven world
The report emphasizes the crucial role of the NextGen in driving innovation in Family Businesses using Artificial Intelligence (AI) in the digital era, shaping leadership thinking, technology trends, and unlocking the potential of AI.
Explore key findingsIn the ever-evolving landscape of business and technology, the emergence of generative artificial intelligence (“GenAI”) stands as a transformative force, reshaping industries and redefining the very nature of leadership.
PwC’s NextGen 2024 Survey sheds light on Vietnamese NextGen’ pivotal position in shaping the future of family businesses amidst the digital age’s transformative tide. The NextGen in Vietnam are not mere spectators to this paradigm shift, but are poised to step into leadership roles, armed with a keen understanding of the significance of AI and its implications for future strategies. More than ever, they have the capacity to shape their family businesses and make an impact as they take up responsibilities as stewards of their businesses.
We encourage you to share the insights from this survey with family members, top management and peers, and join us on this exciting and transformational journey.
1 Embracing Leadership in the Digital Era
Our ongoing analysis of family businesses and the members of the next generation (“NextGen”) in Vietnam since 2019 has shown increasing generational involvement and transition within these enterprises. With a strong emphasis on personal and professional development, 76% of NextGen within family businesses in Vietnam prioritise opportunities for learning and growth within their companies. Moreover, they demonstrate a clear understanding of both the career aspirations set by the current generation and their own ambitions for future roles within the family business.
As Vietnamese NextGen step into leadership roles amidst the dawn of technological disruption, their focus remains steadfast on securing the prosperity of their family businesses. A notable 39% prioritise growth as a top business imperative, underscoring their commitment to driving forward momentum. Aside from business growth priority, talent management and technology adoption are top priorities for NextGen in the next two years.
Vietnamese NextGen bring their distinct perspectives to the forefront, identifying avenues where they can drive substantial value within their enterprises, alongside articulating clear business objectives. Positioned as catalysts for change, they recognise their key roles in reshaping the future sustainability of their family businesses.
Where NextGen feel they can add the most value to the business (%)
Having a business strategy fit for the digital age
Vietnam: 24% | Global: 21%
Having a clearly defined purpose, i.e. ensuring the businessis not just about making profits
Vietnam: 18% | Global: 10%
Separating family ownership from management
Vietnam: 15% | Global: 8%
Thriving on changes: sharing from NextGen
In the dynamic realm of business, where technology constantly reshapes the landscape, the story of Ms. Vuu Le Quyen, CEO of Biti’s, offers valuable insights into navigating change and preparing for an AI driven future.
Reflecting on Biti’s current early-stage adoption of technologies like GenAI, I see the imperative for action. In the ever-changing business and technological landscape, adaptation is vital for survival. By identifying gaps, assessing risks and opportunities, and investing in areas that yield competitive advantages, we can attain sustained growth and success, with our people leading the charge.
2 Exploring Generative AI (“GenAI”) and Emerging Technologies
Attuned to emerging technologies
According to the 2024 PwC Asia Pacific CEO Survey, the emergence of climate change and technological advancements, notably led by innovations like GenAI, has intensified the call for CEOs to adapt their strategies. An overwhelming 77% of business leaders in the region anticipate substantial shifts in how their companies generate, deliver and capture value within the next three years, all due to the influence of GenAI.
Harnessing the advantages of AI in the next three years
Vietnamese NextGen view GenAI as a catalyst for business transformation, anticipating benefits like increased employee productivity (39%), cost savings (39%), and enhanced customer experience (36%). This highlights the strategic significance of embracing AI in today’s competitive landscape, positioning family businesses for success in the digital age.
Advocating for a governance framework for Responsible AI
Over half of NextGen in Vietnam express concerns about the potential increase in cybersecurity risks associated with GenAI adoption. Consequently, Vietnamese NextGen are increasingly acknowledging the necessity of governance structures for utilising AI within family businesses, with 69% recognising the imperative of defining such frameworks. Clear governance structures will play a pivotal role in guiding ethical AI practices, mitigating risks, and fostering trust among stakeholders.
As AI may significantly impact current family businesses in the near future, NextGen leaders in Vietnam should consider how AI could disrupt their current business models. They need to seize new opportunities that AI can offer and invest in the right resources and expertise to foster a culture of adaptability. By embracing Responsible AI throughout their AI adoption journey, they can harness its transformative power while safeguarding their core values.
3 Maximising NextGen’ contribution to family businesses
Vietnamese NextGen seek to be agents of change in order to bring innovation and change within family businesses. However, in order for them to play their role as innovation catalysts, there will need to be alignment between the perspectives of the two generational cohorts, to make sure that business and family are united in carrying out these transformative tasks.
4 Next steps
Turbocharging innovation in family businesses |
Co-managing generational transition in an AI-driven world |
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For NextGen |
For CurrentGen |
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Aligning NextGen and current leaders’ understanding of digital initiatives is vital for unlocking NextGen’ innovation potential in family businesses. Fostering governance and trust is key.
NextGen need to learn how to combine the legacy and values of their family business with their own ambitions, as well as having transparent communication on innovation ideas. Meanwhile, the current generation can help the next generation prepare for leadership by involving them in leadership decision-making and letting them manage lowerstakes innovation projects where they can prove themselves and learn from their mistakes.
These foundational elements can lay the groundwork for sustainable growth and smooth succession in the digital era.
Read PwC's Global NextGen Survey 2024
Download PwC's NextGen Vietnam Survey 2024
Get in touch
Johnathan Ooi Siew Loke
Partner, Deals and Consulting Services Leader, PwC Vietnam
Tel: +84 28 3823 0796
Nguyen Hoang Nam
Environmental, Social & Governance (ESG) Leader and Partner, Assurance Services, PwC Vietnam
Tel: +84 28 3823 0796