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Located in Southeast Asia, Vietnam is a culturally rich country whose distinct history played a role in the development of the modern day state. Having been under Chinese rule for over 1,000 years, traces of Chinese culture in Vietnam still linger. Vietnamese practices of Confucianism and showing reverence towards ancestors are evidence of China’s historical influence on Vietnamese society.
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Vietnam Today
Vietnam became an independent state in the 10th century but was colonised by the French in the mid 1800s. It gained independence after World War II but still retains traces of French culture which are visible in the way people communicate verbally and non-verbally. Though Vietnam has struggled over the past century through colonial rule, the Vietnam War and recent economic upheavals, it is now rebuilding itself to be able to compete on a global scale. Having a comprehensive understanding of Vietnam’s unique cultural values and traditions is essential if you want to develop strong and effective business relationships with Vietnamese counterparts.
Vietnamese Culture – Key Concepts and Values
Confucianism – Based on the teachings of the early Chinese philosopher Confucius in the 6th century BC, Confucian teachings emphasise the importance of relationships, responsibility and obligation. This philosophy is still a vital component of Vietnamese society and is prevalent in Vietnamese business culture in conserving the harmony of the collective good.
Face – The idea of saving face is an important concept in Vietnamese society. The Vietnamese will do anything to prevent loss of face, even if it means to avoid confrontation or telling others what they want to hear rather than dealing with immediate issues. Criticising someone in public and not staying true to promises are possible ways that may cause a loss of face.
Collectivism – Vietnam is a collectivist society in which the needs of the group are often placed over the individual. Community concerns will almost always come before business or individual needs. Family in particular plays an important role in Vietnamese society. You will notice that close ties between extended families and communities can have a major influence on individual behaviour and oftentimes there are multiple generations living under one roof.
Doing Business in Vietnam
A once war-torn nation, Vietnam experienced severe economic turmoil in the past century due to the inefficiencies of a centrally planned economy as well as the trade embargo from the US and parts of Europe. However, the implementation of the ‘doi moi’ (renovation) policy in 1986 brought about reforms that allowed for economic liberalisation. A member of the World Trade Organisation since 2007, Vietnam has taken progressive steps to transform itself into a market-based, competitive economy which has seen its economy grow significantly. Vietnamese authorities have recently reaffirmed their commitment to economic modernisation and the government has shown efforts to stabilise the economy through tighter monetary and fiscal control. As such, Vietnam is becoming an increasingly attractive market for international investments. Understanding Vietnam’s complex history and economy and how it has influenced its unique social and business culture will help to further any business endeavours in Vietnam.
Part 1 – Working in Vietnam: Working practices in Vietnam
Structure and hierarchy in Vietnamese companies
Working relationships in Vietnam
Part 2 – Doing Business in Vietnam: Business practices
Business Etiquette (Do’s and Don’ts)
DO maintain a soft voice while conducting business as loud voices and excessive hand gestures are often perceived as rude and make Vietnamese uncomfortable.
DO hand out business cards as they are a must in business dealings. Although there are some Vietnamese that have a working knowledge of English, it is considered polite business practices to print the cards in Vietnamese and use the language if possible.
DO wrap gifts in colourful paper.
DO arrive on time to meetings as Vietnamese are very punctual. Being late is considered impolite and timeliness is expected.
DON’T refuse tea or food when offered by your Vietnamese counterpart. It is considered impolite.
DON’T stand with your hands on your hips or with your arms crossed or use your finger to point but instead use your whole hand.
DON’T publicly criticise others as it would cause the loss of face for both parties. Vietnamese are status conscious and appreciate the value of a good reputation.
DON’T touch someone’s head as it is considered to be the spiritual centre of the person.
Vietnam Culture Quiz – True or False
1. Vietnamese tend to avoid showing any emotions in their speech and facial expressions.
2. Punctuality is imperative when conducting business.
3. It is not acceptable to exchange gifts with Vietnamese counterparts as it may be seen as a bribe.
4. Some Vietnamese will not speak up even if they do not agree with their foreign counterparts in a business negotiation.
5. Vietnamese prefer to come to a consensus for the sake of the group.
Vietnam Culture Quiz – Answers
1. False. Facial expression is more common in Vietnam than other Asian nations due to the influence of French history. They also tend to be more frank and open due to prolonged contact with Americans.
2. True. Vietnamese expect punctuality.
3. False. Gifts are appreciated but be sure they are small and not too opulent.
4. True. Vietnamese will always strive to save face.
5. True. Vietnam is a collectivist society and people prefer to consult the group.
Vietnam Today
Vietnam became an independent state in the 10th century but was colonised by the French in the mid 1800s. It gained independence after World War II but still retains traces of French culture which are visible in the way people communicate verbally and non-verbally. Though Vietnam has struggled over the past century through colonial rule, the Vietnam War and recent economic upheavals, it is now rebuilding itself to be able to compete on a global scale. Having a comprehensive understanding of Vietnam’s unique cultural values and traditions is essential if you want to develop strong and effective business relationships with Vietnamese counterparts.
Vietnamese Culture – Key Concepts and Values
Confucianism – Based on the teachings of the early Chinese philosopher Confucius in the 6th century BC, Confucian teachings emphasise the importance of relationships, responsibility and obligation. This philosophy is still a vital component of Vietnamese society and is prevalent in Vietnamese business culture in conserving the harmony of the collective good.
Face – The idea of saving face is an important concept in Vietnamese society. The Vietnamese will do anything to prevent loss of face, even if it means to avoid confrontation or telling others what they want to hear rather than dealing with immediate issues. Criticising someone in public and not staying true to promises are possible ways that may cause a loss of face.
Collectivism – Vietnam is a collectivist society in which the needs of the group are often placed over the individual. Community concerns will almost always come before business or individual needs. Family in particular plays an important role in Vietnamese society. You will notice that close ties between extended families and communities can have a major influence on individual behaviour and oftentimes there are multiple generations living under one roof.
Doing Business in Vietnam
A once war-torn nation, Vietnam experienced severe economic turmoil in the past century due to the inefficiencies of a centrally planned economy as well as the trade embargo from the US and parts of Europe. However, the implementation of the ‘doi moi’ (renovation) policy in 1986 brought about reforms that allowed for economic liberalisation. A member of the World Trade Organisation since 2007, Vietnam has taken progressive steps to transform itself into a market-based, competitive economy which has seen its economy grow significantly. Vietnamese authorities have recently reaffirmed their commitment to economic modernisation and the government has shown efforts to stabilise the economy through tighter monetary and fiscal control. As such, Vietnam is becoming an increasingly attractive market for international investments. Understanding Vietnam’s complex history and economy and how it has influenced its unique social and business culture will help to further any business endeavours in Vietnam.
Part 1 – Working in Vietnam: Working practices in Vietnam
Structure and hierarchy in Vietnamese companies
Working relationships in Vietnam
Part 2 – Doing Business in Vietnam: Business practices
Business Etiquette (Do’s and Don’ts)
DO maintain a soft voice while conducting business as loud voices and excessive hand gestures are often perceived as rude and make Vietnamese uncomfortable.
DO hand out business cards as they are a must in business dealings. Although there are some Vietnamese that have a working knowledge of English, it is considered polite business practices to print the cards in Vietnamese and use the language if possible.
DO wrap gifts in colourful paper.
DO arrive on time to meetings as Vietnamese are very punctual. Being late is considered impolite and timeliness is expected.
DON’T refuse tea or food when offered by your Vietnamese counterpart. It is considered impolite.
DON’T stand with your hands on your hips or with your arms crossed or use your finger to point but instead use your whole hand.
DON’T publicly criticise others as it would cause the loss of face for both parties. Vietnamese are status conscious and appreciate the value of a good reputation.
DON’T touch someone’s head as it is considered to be the spiritual centre of the person.
Vietnam Culture Quiz – True or False
1. Vietnamese tend to avoid showing any emotions in their speech and facial expressions.
2. Punctuality is imperative when conducting business.
3. It is not acceptable to exchange gifts with Vietnamese counterparts as it may be seen as a bribe.
4. Some Vietnamese will not speak up even if they do not agree with their foreign counterparts in a business negotiation.
5. Vietnamese prefer to come to a consensus for the sake of the group.
Vietnam Culture Quiz – Answers
1. False. Facial expression is more common in Vietnam than other Asian nations due to the influence of French history. They also tend to be more frank and open due to prolonged contact with Americans.
2. True. Vietnamese expect punctuality.
3. False. Gifts are appreciated but be sure they are small and not too opulent.
4. True. Vietnamese will always strive to save face.
5. True. Vietnam is a collectivist society and people prefer to consult the group.
