Family businesses account for 25% of Vietnam’s gross domestic product

In Vietnam, about 100 large family businesses out of a total of 750,000 family-owned firms, contribute up to 25% of the country's GDP, said Vo Tan Thanh, Vice President of Vietnam Chamber of Commerce and Industry.

Compared to international family-owned businesses, with an average age of 78 years, the two Vietnamese firms are considered as young, just over 25 years. But the contribution of these businesses to Vietnam's economy is significant.

Unfortunately, the business transferring between generations seems unsuccessful. Only 30% of family businesses successfully transfer to the second generation. At the third generation, this figure is only 12% and at the fourth generation, the rate is only 3%.

The main reason are the different mindset and ineffective connection between generations, explained Lam Ngoc Minh, director of Lien A Company.

According to Family Capital, family businesses’ importance to the global economy has never been greater. The top 750 family businesses in the world generate annual revenues of more than $9 trillion and employ nearly 30 million people.

Out of the 750 companies, 57 were from China.