Family businesses need to build trust with key stakeholders: PwC

Family businesses in Vietnam need to make changes to build trust and make their efforts visible to their stakeholders, PwC Vietnam said in a survey released on Wednesday.

The corporate services firm made the recommendation after discovering a trust gap with key stakeholders in its “Family Business Survey 2023 - Transform to build trust”.

The survey also found that family businesses had enjoyed positive growth compared to the last survey in 2021, with 53% seeing rising sales, and 36% reporting double-digit growth, according to the report.

However, growth goals for the next two years are less ambitious, with only 14% of Vietnamese family businesses predicting rapid growth, less than half compared to the last survey (33%). The key priorities facing Vietnamese family businesses over the next two years are improving digital capabilities and rethinking their business models.

By building trust with stakeholders in order to adapt and thrive, family businesses’ goal should be to increase the visibility of their efforts and deliver consistent messages to key stakeholders, according to PwC Vietnam.

The survey shows that most businesses believe they are not fully trusted by customers, employees and investors.

The report highlights four key areas where family businesses can build trust and build long-term growth and success - customers, investors, employees and family members. Customers (75%) followed by employees (61%) and investors (61%) are the most important stakeholders. Meanwhile, trust among family members is considered significantly less important (28%).

PwC Vietnam partner Jonathan Ooi said: “The post-Covid global optimism has been tested by geopolitical turmoil and its economic impacts, leaving businesses navigating uncharted territory. Family businesses know that trust is a prized asset, serving as a cornerstone of their success and a key differentiator in today's competitive landscape.”