Vietnam enters a major wealth transfer phase

Vietnam opened its economy in 1986 and has since undergone four decades of development. This period has been long enough for the first generation of entrepreneurs to emerge, with more than 30 years spent accumulating wealth and building businesses.

Speaking at the AIA Elite Summit 2026 on Saturday, Nguyen Quang Duy, deputy general director of marketing and partner-channel business development at AIA Vietnam, said the country was entering a critical macroeconomic phase, with a major transfer of wealth from the first generation (F1) to the second (F2) expected to take place between 2025 and 2050.

"It is no coincidence that in the past few years we have seen the second generation of some major U.S.-dollar billionaires and Vietnamese business families step into the public eye. This is the result of a historic process shaped by Vietnam’s distinctive economic development.

"We estimate that around 30% of the total wealth held by affluent clients will be transferred to the next generation over the next 25 years. This is therefore both an opportunity and an extremely important transition for all wealthy families and business dynasties," Duy said.

Ngo The Trieu, founder and CEO of Optima Wealth Partners, said the way Vietnamese businesses were established and developed had a significant influence on how wealth was accumulated and transferred. Most businesses began with an individual’s business idea or investment decision before expanding through partnerships. Wealth could be built around a particular asset stream, a distinctive business model or the ability to seize market opportunities as they arose.

This development process has also tended to concentrate management and decision-making power in the hands of a few people, particularly at large private conglomerates often closely associated with a dominant individual or group. As Vietnam has yet to go through many generations of wealth accumulation and transfer, assets created through business development also tend to be concentrated among a relatively small number of individuals and families.

Trieu said one of the biggest concerns for this generation of entrepreneurs was the adage that “wealth does not last three generations.” Recent experience has shown that a number of individuals and businesses that once controlled enormous fortunes have lost their wealth or seen their empires decline when handed down to successors. Only around 30% of family businesses survive into the second generation, while the proportion falls to about 13% by the third generation.

How the ultra-rich transfer wealth across generations

According to Tran Thanh Tung, a partner at GV Lawyers, wealthy families typically face three major crises during intergenerational wealth transfers: power, capability and interests.

A power crisis stems from psychological tensions and disagreements over decision-making between generations. The older generation, F1, often fears losing control and retains management authority even after transferring assets. Meanwhile, successors in F2 may feel constrained and distrusted. Ambiguity over authority can easily become a source of conflict.

A capability crisis occurs when assets are transferred faster than recipients can develop the maturity and management skills required to oversee them. Successors may lack the business experience, management expertise and ability to handle pressure needed to take control of a large portfolio of assets. “Handing an enormous fortune to someone who is not yet capable of managing it is like giving a Formula One racing car to a novice driver, creating a risk of losses and collapse,” Tung said.

An interests crisis emerges when the family head steps back, weakening their role in maintaining balance within the family. Long-simmering disputes among members may surface, particularly over asset distribution and entitlements. Without clear mechanisms for allocating rights and sufficient cash to meet financial obligations, the transfer process can lead to legal disputes that damage both wealth and family relationships.

To limit such conflicts, the ultra-rich often draw a clear distinction between ownership of assets and the authority to manage and use them. Rather than transferring assets directly from parents to children, Tung said, they establish intermediary structures to manage and control the wealth.

One such structure is a family office, a dedicated professional organization that manages a family’s affairs and assets. As F1 steps back, its members take on a strategic advisory role, while F2 can participate in management under established procedures and the supervision of independent professionals such as lawyers and financial advisers.

A trust, meanwhile, serves as a legal structure for holding assets. Wealthy families transfer assets into the trust, which is administered by an independent trust management company according to predetermined terms. F2 members can receive benefits from the assets according to a set schedule, such as upon graduating from university or reaching a specified age. These mechanisms allow F1 to step back with greater confidence while limiting the ability of F2 to dispose of or dissipate assets at will.

Wealth transfers are also rarely abrupt. The ultra-rich typically prepare successors through education, challenges and close guidance. Rather than handing over assets immediately, F1 invests in education and gives F2 opportunities to gain practical experience, such as working at outside corporations. Successors may then be entrusted with managing investment funds or smaller projects before taking responsibility for larger assets.

Proactive healthcare and maintaining healthy longevity can also give F1 more time to guide F2. As long as the older generation remains mentally sharp and capable, it can gradually shift from an executive role to one focused on advising, observing and supporting successors.

To avoid disputes or the forced sale of long-term assets, such as real estate and company shares, to divide an inheritance, families can also use legal and financial instruments. A family constitution, for example, sets out members’ rights and obligations, including eligibility for management positions, dividend entitlements and principles for distributing benefits. Agreeing on these rules while F1 remains mentally capable can help prevent future disputes.

Tung also highlighted high-value life insurance policies as a source of liquidity when the family head dies, allowing the family to meet financial obligations without having to sell assets immediately. The proceeds can be used to cover liabilities, including inheritance taxes in countries where such taxes apply, or to compensate children who do not participate in running the business. This can help preserve business stability and protect long-term family wealth.