HCMC – Around 87% of businesses in Vietnam face challenges with succession planning, with many citing unclear policies and a shortage of qualified leaders, according to a report released on Thursday by talent solutions firm Robert Walters.
The study found that 44% of companies lack a succession plan altogether, while 21% of those with a plan rated it ineffective. More than half also cite unclear policies and procedures, underscoring the need for structured approaches.
Vietnam’s aging workforce and younger generations’ reluctance to step into leadership roles are adding to the difficulties.
About 37% of organizations reported challenges in transferring knowledge to younger staff, while 22% said younger employees were uninterested in leadership positions.
A further 16% highlighted challenges in finding suitable replacements for retiring employees, and 18% expressed concerns about losing critical skills and experience.
This demographic shift is making it increasingly difficult for Vietnamese businesses to ensure smooth leadership transitions and safeguard long-term organisational resilience.
Cultural and structural barriers also complicate planning, with 67% of firms emphasizing harmony, 45% respecting hierarchy and seniority, and 20% citing family influence.
On the organizational side, 59% of respondents pointed to a shortage of qualified talent, and 55% highlighted rigid structures.
The scarcity of qualified leaders, combined with structural constraints, leaves many organisations unprepared for leadership changes. Larger businesses must navigate intricate hierarchies, while industries face specific requirements that further complicate planning.
Without a robust plan, companies risk operational disruption, weakened morale, and loss of stakeholder confidence when transitions occur unexpectedly.
Robert Walters urged businesses to adopt a structured approach, including identifying critical roles, developing high-potential staff, and regularly reviewing succession strategies.
The “Success in succession: Building a leadership pipeline to keep your business thriving” report surveyed close to 100 organisations in Vietnam. Respondents came from a diverse range of industries, including manufacturing, FMCG, healthcare, technology, and logistics.
