July 12, 2022
Understanding Vietnam Business Culture
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Vietnam business culture - Source: gempartner.com
Vietnam is one of the oldest and most seasoned countries in Southeast Asia. While the Vietnamese national identity can be quite complex from the point of view of foreigners, however, Vietnamese people have always prided themselves on the language and its complexity, as well as the uniqueness of its culture and traditions.
With the policy of international economic integration of Vietnam, more and more foreigners set up a business in Vietnam. Cultural characteristics are not only reflected in daily life activities but also in business. Vietnamese people have a saying "Nhập gia tuỳ tục", which means "when in Vietnam, do as the Vietnamese do", for those who intend to do business in Vietnam, it is important to learn about the culture and the country's vibrant business traditions, which will be clearly introduced and analyzed below.
Why should to know Vietnam business culture.
Culture illustrates the accepted norms and values and traditional behavior of a group or at the national level. However, culture also evolves over time. The culture of each country has its own beliefs, values and activities.
Culture is a key component of business and has an impact on the strategic direction of the whole business. The working style, beliefs and habits of the organization are also the business cultures in Vietnam that foreigners must know because in Vietnam, the culture directly affects the management, decision making and all business functions from accounting to production.
Vietnamese business culture has appeared very early. Through historical periods, overcoming the rigors of economic and social conditions, Vietnam's business culture has always shown itself in the intelligence, creativity, responsiveness and quick adaptation of businesses. Additionally, the process of opening up and integrating helps foreign investors enter the process of cooperation and competition in Vietnam. Many Vietnamese enterprises of international stature are well aware that the purpose of building and developing a brand is not only to maximize profits, but also to protect and preserve the national face and culture during integration.
Therefore, understanding the business culture of Vietnam is something that foreign investors play a very important role in.
How Vietnamese form the culture in business.
Like other countries, to build a business culture, in Vietnam, businesses also have specific strategies:
- Vision/Mission: The vision is the foundation of the business culture because it sets the purpose and aligns with the values of the business.
- Values: Values are the core of business culture. A set of values that will be clearly articulated and communicated to all employees may include how the company is committed to serving customers, treating partners, and maintaining professional standards. Value is a wide notion that encompasses the spirit and attitude required to realize the company's purpose.
- Practice: The way businesses approach, monitor and manage the realization of their vision and values.
People: The company's biggest resource is its people. A cohesive culture is based on shared core values and people's ability to access those values. In recruitment, some businesses hire not only talented people, but also people who fit the corporate culture.
- Location: An expansive work environment and location can help employees create a corporate culture by meeting and interacting throughout the day.
What need to know about behavior in Vietnam business culture.
1. Greeting
The main language of Vietnam is Vietnamese with 86% of the population using Vietnamese in daily life and work activities. Vietnamese people will say “Xin chào” (seen chow) when they meet, it means “hello” in English. Vietnamese people will also appreciate and sympathize with a foreigner who tries to learn the language of everyday communication as their “xin chào".
In addition, Vietnamese often shake hands and bow slightly. It is a common custom to greet and say goodbye. The handshake is often used when both sides are of the same sex and usually takes place between men, some Vietnamese people will shake hands with both hands. For female partners, instead of shaking hands, they often nod slightly instead of a greeting.
2. Outfit
Vietnam's climate is quite hot, especially in the southern regions and summer in the north, so consider choosing clothes that are both formal and comfortable. Like other countries in the world, when it is necessary to participate in conferences, both men and women in Vietnam wear luxurious suits, or men will wear shirts and ties; women will wear modest dresses, skirts and shirts.
3. Name cards
Remember to always bring your business card when traveling to Vietnam to attend business meetings and conferences. When you receive your card, don't immediately put it in your pocket, take a few minutes to look through the information on the giver's card, remember to pronounce their name correctly, and show how much you appreciate the opportunity to meet them. After finishing this process, put the name card in your wallet to show your respect.
In addition, if possible, you should have a bilingual business card in both English and Vietnamese to give back to your partner.
4. Communication
Any expat who has lived and worked in Vietnam for a long time will tell you to invest in relationships, building trust and mutual respect. For Vietnamese, comfort and respect often precede business communication. Therefore, negotiations in Vietnam seem to be a bit slow as it takes a long time to build relationships with potential customers. As long as there is commitment, proper communication and relationship building throughout the process, the benefits are even more apparent if the business and partner have a common relationship with other potential stakeholders.
5. Gift-giving
Gift giving is a very popular cultural expression in Vietnam. Business gifts do not promote corruption or bribery. In Vietnamese culture, gifts show the sophistication, affection and respect between the giver and the recipient. On holidays, Vietnamese people often give gifts to partners and colleagues to strengthen relationships.
Vietnamese people think that gifts are not as important as the heart and attitude when giving gifts. To understand clearly this culture of Vietnam, click here: The beauty of Gift Giving Customs in Vietnam
6. Seniority
Since Vietnamese corporate culture values hierarchy, people show respect and respect for senior staff in the boardroom – in terms of rank, experience, and age.
7. Eating
Food etiquette plays an important role. Especially for dinner, they usually consist of several dishes and will all be placed on the table. You will share these dishes with everyone at the table by taking some from each person on your own plate.
Chopsticks are part of Vietnamese tradition, and you'll always find them in restaurants. However, some western or modern restaurants will also offer western utensils such as spoons, forks and knives.
If you are invited as a guest, bring some gifts like fruit, candy, flowers or wine. Avoid giving handkerchiefs, anything black, white flowers, or daisies. Waiting for the host to signal to start the meal before serving yourself is considered polite. Eating all the food on the plate is considered good manners.
If eating at a restaurant, you should wait to be seated. In all cases, the oldest person in the group or the person with the highest position in the company will be seated first. Use both hands to transmit what you want to transmit and absolutely do not pass anything over the head of another person. When signaling to passersby, do not use your fingers but use your hands to signal.
To find out the eating habits of Vietnamese, visit here: Cultural features in the Vietnamese eating habits
In conclusion, the cultural characteristics in Vietnam are not only reflected in daily life activities but also in business. Understanding Vietnam's business culture is relatively important for foreigners to have a successful business partnership in Vietnam.
If you are finding a guide to set up a business in Vietnam, visit here: Setting Up A Business in Vietnam as A Foreigner
Understanding Business Culture in Vietnam
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