Most businesses in Việt Nam struggle with succession planning, report shows

Most businesses in Việt Nam struggle with succession planning, report shows

Effective succession planning is not just about preparing replacements – it’s about preparing the organisation for the future. In a context where resources for development are limited and career progression opportunities are unclear, companies in Việt Nam need to identify the right internal talent and create personalised development roadmaps to retain and nurture employees into future leaders.

An effective succession plan prepares the organisation for the future by identifying, retaining and developing internal talent into future leaders. — Photo courtesy of Robert Walters Vietnam

A  report by Robert Walters Vietnam shows that 87 per cent of businesses in the country face challenges with succession planning, with 44 per cent lacking a plan and more than one in five rating their strategies as ineffective. 

More than half of firms also cited unclear policies and procedures, highlighting the need for more structured approaches. 

According to the survey, 37 per cent of organisations reported difficulties in transferring knowledge and expertise to younger employees, while 22 per cent said younger generations are not interested in pursuing leadership positions.

A further 16 per cent highlighted challenges in finding suitable replacements for retiring employees, and 18 per cent 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.

“In Việt Nam’s fast-changing business environment, succession planning is more than a strategic move – it’s a necessity. With limited resources for development and few clear advancement pathways, companies must take proactive steps to identify high-potential talent and nurture them through structured development plans. 

"This not only strengthens leadership pipelines but also ensures long-term organisational resilience,” said Robert Walters Vietnam Country Manager Phạm Tuấn Phúc.

On the organisational side, 59 per cent of respondents cited a shortage of qualified talent, 55 per cent pointed to rigid structures and 35 per cent said factors like organisation size and industry type complicate the process.

Other barriers include insufficient resources for training and leadership development (53 per cent) and lack of leadership buy-in, both making it harder to sustain effective strategies. Together, these realities create substantial obstacles to building strong leadership pipelines and make succession planning in Việt Nam particularly complex.

To overcome these barriers, the report outlines a practical six-step framework to help organisations design and maintain effective succession plans. It encourages companies to first identify critical roles and align them with long-term business objectives, before selecting high-potential employees and assessing their readiness for leadership responsibilities.

From there, businesses are urged to develop personalised career paths and retention plans to keep successors engaged, while also planning for positions that may require external recruitment. Companies are also advised to review and communicate their succession strategies regularly to ensure alignment with evolving organisational needs.

“Effective succession planning is not just about preparing replacements – it’s about preparing the organisation for the future. In a context where resources for development are limited and career progression opportunities are unclear, companies in Việt Nam need to identify the right internal talent and create personalised development roadmaps to retain and nurture them into future leaders,” Phúc said.

The 'Success in succession: Building a leadership pipeline to keep your business thriving' report surveyed close to 100 organisations in Việt Nam. Respondents came from a diverse range of industries, including manufacturing, FMCG, healthcare, technology and logistics. 

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