The insights below are derived from PwC's Global NextGen Survey 2024, which explores the evolving perspectives and roles of next-generation leaders in family businesses. This international survey, conducted online, gathered reflections from 917 next-generation leaders across 63 territories, including 33 from Vietnam, between November 2023 and January 2024. It offers a unique look into how these leaders are adapting to an increasingly digital and AI-driven business environment.
In the context of family businesses, the terms "Current Generation" and "Next Generation" (NextGen) often refer to different generational cohorts within the same family who may be at varying stages of involvement and leadership within the company. The Current Generation typically includes those who are currently in control of the business, often having built or significantly expanded it. They generally adhere to traditional business practices and may be more risk-averse.
Embracing Leadership in the Digital Age
Vietnamese NextGen leaders are significantly marking their presence in leadership roles within family businesses, with an impressive 52% now holding such positions, a substantial increase from 29% in 2022. This trend underscores a strong generational shift towards greater involvement. the workforce is equipped with the skills needed to handle new technologies.
Source: PwC’s Global NextGen Survey 2024 Vietnam report
Furthermore, 76% of NextGen leaders in Vietnam have a clear understanding of their personal ambitions and the career paths envisioned by the current generation. They are tackling the complex challenges faced by businesses and society with a strategic approach that integrates human insight with technological advancement. A significant focus among these leaders is enhancing technological infrastructure, evident in 36% prioritizing this area, alongside ensuring that 33% of the workforce is equipped with the skills needed to handle new technologies.
Source: PwC’s Global NextGen Survey 2024 Vietnam report
Delving into Generative AI (GenAI) and New Technologies
A remarkable 82% of Vietnamese NextGen leaders show a deep interest in exploring Generative AI (GenAI), recognizing its potential to fundamentally transform business operations and customer experiences. This widespread interest highlights their awareness of GenAI's capacity to reshape the competitive landscape and foster innovation.
Additionally, 67% view AI as a crucial opportunity for leadership in the ethical use of technology, illustrating their readiness to embrace responsible innovation. This perspective is shared by 58% who believe that leading AI initiatives will not only progress their businesses but also establish their personal reputations as visionary leaders.
Source: PwC’s Global NextGen Survey 2024 Vietnam report
Despite the eagerness to adopt AI, 63% of family businesses in Vietnam are still in the early stages of this technological integration. However, positive signs are showing, with 27% experimenting with AI in pilot projects, and 9% having fully integrated AI solutions into their operations, signaling proactive steps towards embracing this advanced technology.
Enhancing NextGen's Impact in Family Enterprises
Navigating the digital landscape presents significant challenges, particularly when it comes to aligning the strategies of current and upcoming generations within family businesses. NextGen leaders, keen on pushing forward with new technologies, often find themselves at odds with more traditionally inclined current leaders. This underscores the critical need for effective communication and collaboration to harmonize these differing perspectives and secure the business's future success.
Moreover, building robust governance and establishing trust are top priorities for NextGen leaders, with a significant majority recognizing the importance of clear ethical guidelines for AI usage. Despite this awareness, only a fraction have put such governance structures into place, revealing a substantial gap between intent and execution. The survey further highlights the importance of involving NextGen leaders in low-risk, high-return AI projects. This strategic approach allows family businesses not only to stay competitive but also to lead the charge in technological advancements, capitalizing on the innovative mindset and technological savvy of the younger generation