Vietnamese families eye sustainability, growth for legacy

Vietnamese families eye sustainability, growth for legacy

Families in Việt Nam are no longer defining legacy purely by wealth, but by the ability to sustain and grow it for future generations, according to a new survey released by Sun Life Asia.

Vietnamese families envision their legacy in multifaceted ways. They are no longer defining legacy purely by wealth, but by the ability to sustain and grow it for future generations — Photo Courtesy of Sun Life Asia

The study, titled "Passing the Torch: Building Lasting Legacies in Asia", encompassed over 3,000 respondents from Hong Kong, Indonesia, Malaysia, the Philippines, Singapore, and Việt Nam. It sheds light on the attitudes, behaviours, and aspirations influencing legacy planning in the region.

Vietnamese families envision their legacy in multifaceted ways. When questioned about the kind of legacy they wish to leave behind, 40 per cent emphasise passing on wealth, including money, property, valuable assets, or a family business, followed by upholding family traditions with 18 per cent and exerting a personal influence on family and friends with 12 per cent.

The concerns extend beyond financial matters. Merely 27 per cent believe their children will carry forward family traditions, with reasons such as differing generational priorities at 67 per cent, limited engagement (27 per cent), values misinterpretation at 33 per cent, and weakened intergenerational bonds with 30 per cent being cited as significant factors.

CEO of Sun Life Vietnam, Tan Lay Hoon, said: “Today’s families view legacy as much more than financial inheritance – it’s about creating lasting impact through financial growth, supporting education and healthcare and even opening global opportunities. People want their wealth to work harder, not only for today, but to generate momentum that benefits generations to come.”

In Việt Nam, 69 per cent of respondents regard family financial protection as the cornerstone of legacy, according to the report.

Close to seven in 10 respondents stress the importance of having safeguards in place to ensure their families' financial security as the top priority in legacy planning. This is followed by the significance of having a clear, well-communicated estate plan to minimise confusion or disputes and building ample wealth to pass down to successive generations.

The majority of respondents prefer the wealth they pass on to fuel long-term growth. Specifically, 40 per cent wish for their legacy to be invested in long-term financial assets, encompassing life insurance or family businesses. A significant number also hope their wealth will cater to essential life needs, with 62 per cent prioritising housing and healthcare, and another 62 per cent emphasising funding education from primary school to college or vocational training.

There is a concern among 45 per cent of respondents that their wealth may not endure beyond their children's generation, with nearly half worrying that their heirs lack the financial acumen to manage inherited assets. This underlines the pressing need for enhanced financial literacy and more open family discussions about money management. Only a quarter exhibit confidence that their children will uphold family traditions, preserve assets, and continue growing them.

David Broom, Chief Client & Distribution Officer at Sun Life Asia, said: “We are seeing a clear shift in how families define legacy – from wealth alone to a combination of financial security, education and purposeful living for future generations. While the survey indicates a gap between intent and action, this highlights the need for proactive planning, professional guidance and open family dialogue to ensure both assets and values are preserved.”

The report reveals that families are transforming financial education into another form of inheritance by passing on knowledge and experience related to money management to nurture the next generation's financial confidence.

David Broom also said: “People today want to pass on more than wealth; they want to give the next generation the knowledge and values to manage it wisely.” 

Bizhub