Generational transition must strengthen, not just transfer, leadership: SHB bank vice chairman

Do Quang Vinh, vice chairman of Vietnamese private bank SHB, said generational transition in Vietnamese companies should focus on strengthening capabilities rather than simply transferring authority, as firms enter a new phase of development.

Speaking at the conference "40 years of reform: The leading role of economic groups", organized by The Investor on Monday, Vinh said leadership succession is increasingly about “upgrading” enterprises by combining the legacy of founding generations with new capabilities in technology, data governance and global integration.

“Succession is not about repetition, but about creating a stronger version of the business,” he said.

After four decades of Doi moi (reform), many large Vietnamese economic groups are undergoing leadership transitions, with founders from older generations stepping back and younger executives taking on management roles. Vinh said the shift represents a critical turning point not only for companies but also for the broader economy.

He noted that earlier generations built businesses under challenging conditions, leaving behind not just scale but also core values such as credibility, resilience, and long-term commitment.

According to Vinh, also the bank's deputy general director, the biggest challenge with generational transition is the gap in thinking between the older and younger generations; the generations will need to understand each other better.

To solve this problem, it is necessary to clearly understand the role of each generation in the transition. Inheritance is not simply about handing over a position, but about handing over an entire legacy. For a business, it is about preserving and ensuring that the next generation is responsible for developing the legacy left behind.

For the previous generation, they dedicated their entire hearts to their legacy, overcoming the most difficult period of the economy. They lacked many things: capital, institutions… yet they dared to think and act. The previous generation not only left behind scale and prestige, but also values: prestige, strategic thinking, steadfastness, resilience, and unwavering belief in the nation's progress. These are the cultural values that our forefathers bequeathed to future generations.

Younger leaders, by contrast, benefit from better access to education and technology, enabling them to restructure and modernise businesses. However, they may lack the practical experience and resilience of their predecessors, highlighting the need to bridge generational gaps.

"We need to deeply understand and harmonize both generations in order to develop businesses. Today's young generation should understand that rapid growth is necessary, but sustainability is paramount. During favorable periods, the younger generation must not be complacent. And when facing difficulties, they must not give up.

"Ultimately, to develop their businesses, the younger generation needs supportive policies and mechanisms to confidently develop. We can learn from international examples; South Korea has many chaebols that have inherited their legacy because they have favorable policies and mechanisms, allowing them to confidently leverage their strengths," said Vinh.

He added: "Transfer always takes time; it cannot happen overnight. The gap between two generations will be bridged if the business always prioritizes its responsibility to customers and society. If generations share the same goals, direction, and ambitions, I am confident that the generational gap will be eliminated and help the business reach international levels."

Turning to SHB’s strategy, he said the bank aims to balance rapid growth with sustainability, focusing on improving the quality of expansion while maintaining safety and long-term stability.

The lender’s strategy is built on two main pillars: ecosystem development and technology. Under its ecosystem approach, SHB seeks to become a key provider of financial services to large corporate clients, supply chains and broad retail customer bases, enabling deeper integration with the real economy.

On the technology front, the bank is developing a model based on a “5 FIRST” framework: data-driven decision-making, customer-centric design, flexible infrastructure, security-first principles and mobile-first engagement. These initiatives aim to enhance operational efficiency, risk management and scalability in the digital economy.

Looking ahead, SHB targets becoming a next-generation national-scale bank, with strong capital allocation capabilities, advanced technology platforms, and a comprehensive financial ecosystem.

Vinh said human capital and corporate culture would remain foundational, while digital transformation, innovation, and green banking would drive long-term growth.

“This is the path for SHB to grow faster, deeper and more sustainably alongside the country,” he said.