The most famous family run economic groups in Vietnam

VietNamNet Bridge – Though the family run business model remains controversial, the influences of the famous family run conglomerates to the national economy in the past and at present are undeniable.

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The best known business families

In early 20th century, Trinh Van Bo and his wife Hoang Thi Minh Ho successfully developed the family’s heritages and became one of the richest families at that time.

They were known as the owners of the Phuc Loi cloth shop in Hanoi which specialized in wholesaling silk and cloths to the whole area of Indochina.

The family has been famous in the Vietnamese history not only for the richness, but also for its great contribution to the revolution. Ho’s family then donated 5,000 taels of gold, or 90 percent of their assets in 1945, when the national treasury got exhausted.

Tran Thi Huong, also listed among the first generation of Vietnamese businessmen, and her family members have set up some powerful businesses, including Hoan Cau Company, capitalized at VND6 trillion, known as the organizer of Miss Universe 2008, Nam A Bank and Diamond Bay resort.

The Huong family has poured money into different business fields, from industries, afforestation, urban area development, tourism, hotel, resort and shopping mall.

The business run by Do Minh Phu and his family member can be cited as a typical example of the family run business model in Vietnam.

Phu is now the President of DOJI, a gold, silver and gemstone company, and President of Tien Phong Bank. His father, Do The Su was one of the founder of the company which was the forerunner of DOJI. Su’s sons now also hold the most important positions in big businesses. Do Anh Tu, a son of his, is now the General Director of Diana.

Vo Quoc Thang is a famous businessman in Vietnam for his extraordinary working ability. Thang is a National Assembly’s Deputy, President of VPF, Chair of the HCM City Young Entrepreneurs’ Association, and the CEOs of a series of businesses, including Dong Tam, a tile manufacturer.

Thang has developed Dong Tam, a family’s workshop set up by his father in 1965, into a powerful conglomerate. Having become a big financier, Thang has injected money in other business fields, including real estate, industrial zones, securities companies and banking.

In other cases, Xuan Thanh, Thanh Thanh Cong, Son Son, Kinh Do, Biti’s, Tan Hiep Phat, Quoc Cuong, Geleximco are associated with the families of Nguyen Xuan Thanh, Dang Van Thanh, Tram Be, Tran Kim Thanh, Vuu Khai THanh, Tran Quy Thanh, Nguyen Thi Loan and Vu Van Tien.

Family run groups – a tendency in Vietnam?

More and more family run business groups have been set up recently, which has made analysts believe that this would be a growing tendency in Vietnam.

Vietnamese always keep close relations among flesh and blood members. They believe family members than outsiders. Therefore, it is understandable why they tend to appoint relatives or brothers into the most important positions in the companies.

Some experts think the family run business model has a lot of advantages which help heighten the production and business efficiency, and help businesses develop stably.

Meanwhile, some economists argue that the business model would hinder the development of businesses, because it keeps talented people away from the companies.

A recent survey by the Vietnam Chamber of Commerce and Industry VCCI showed that only 10 percent of family run businesses can have sustainable development through three generations.

Manh Ha

stock millionaires, supr rich, monthly income, GDP per capita