Policy makers, who initiate, negotiate, and enact agreements on trade and investment, would be wise to add culture to their calculus. Fiftyseven per cent of the population are under the age of 30, creating a culture of entrepreneurship, technological awareness and openness to new ideas. The vietnamese are generally quite punctual and expect foreigners to be the same. Titles are very important in the vietnamese business culture as status is gained by education and age. The value in understanding the effects of culture on business is not restricted tobusiness managers. July 1954 geneva accords provisionally divide vietnam at the 17th parallel into northern vietnam under ho chi minh and southern vietnam under ngo dinh diem with elections to reunify the country scheduled for july 1956. In vietnam, people generally enter a meeting in order of. Business culture communication vietnamese companies tend to be very hierarchical in nature. An introduction to vietnamese etiquette the dos and donts.
Vietnam traditional culture, vietnam travel service. Douglas saw these categories as relating to a wide variety of beliefs and social actions. Vietnam, a oneparty communist state, has one of southeast asias fastestgrowing economies and has set its sights on becoming a developed. The vietnamese believe in the teachings of the early chinese philosopher confucius which emphasise the importance of relationships, responsibility and obligation. Vietnam is a burgeoning market for us business people. This vietnam powerpoint will teach you about the countrys culture, customs, family life, gender roles, cuisine, etiquettes for dining, social and business interactions, and much more to assist you in your travels. Pdf what practical issues can arise when doing business in vietnam. The accepted style of dress for a business meeting in vietnam is conservative a dark colored, uncontentious suit and tie are customary for men. Vietnamese diplomatic ties have been restored, many american businesses are hoping to be in on the development opportunities offered by what some analysts consider to be asias newest economic tiger. This guide aims to provide a route map of the way ahead, together with signposts to other sources of help.
The following section presents a brief outline of the vietnamese cultural and historical context. Vietnam has been joining wto, and it opens a lot of opportunities to foreign companies who want to do business with vietnam. In vietnamese business culture, suits and ties in subdued colors are the norm. It is currently ranked by world bank on the 90th position for ease of doing business and is one of the fastestgrowing economies in south east asia. Vietnams main cities are hanoi, ho chi minh city formerly saigon, hue, and danang. They will be looking for honest commitment to the relationship from you. When receiving business cards ensure you show proper respect to it and do not simply glance at it and put it on the table. Halong bay hanoi ho chi minh quang binh hue da nang nha trang phan thiet mekong delta vo thanh huy by a story of vietnam sapa. Hanoi is the capital of vietnam and where the ultimate decision may be made on. According to scholarly sources, the culture of vietnam originated from nam vi. This guide, doing business in vietnam, provides a high level overview of the practical aspects of doing business in vietnam, including the common types of business entities used by foreign investors to enter the vietnam market, and the taxation and regulatory environment.
Vietnam is an elongated s shape with a long borderline from china in the north, laos in the west and cambodia in the west and south west. New and improved infrastructure and technologies have made it easier for people to travel, buy, and sell anywhere in the. After that, the organizational culture awareness, the implementation and challenges of lean in vietnam will be discussed. An introduction to vietnamese etiquette the dos and donts updated september 2018 welcome to vietnam. Vietnam crosscultural and language training communicaid. Hierarchy and face manifest in different ways within business meetings. Starting a business vietnam figure starting a business in vietnam score procedures 58. Do not assume that either the laws or regulations presently in effect in vietnam will not be changed to your detriment before andor after a. Vietnamese commercial relationship has grown since the united states lifted its trade embargo against vietnam in 1994 and the two countries renewed diplomatic relations in 1995. Vietnam has a diversified topography of plains, midlands and mountains. To walk into a business meeting in vietnam, open the books, and start talking about how much can be profited from the project is simply not an option. The main objective of this doing business with vietnam guide is to provide you with basic knowledge about vietnam. First of all, vietnam is one of the best economies to register your business in.
Asian culture interprets the respect you show someones business card to be indicative of the respect you will show the individual in business. The vietnam war was a long, costly and divisive conflict that pitted the communist government of north vietnam against south vietnam and its principal ally, the united states. Grid or classification the degree to which interaction is subject to rules. Tv provides the best quality of market research in vietnam. Personal relationships play a large role in vietnamese business culture. Vietnams public and business etiquette do and donts.
Business cards are usually exchanged when meeting for the first time. How is vietnam adapting to the demands of the market economy. The country is friendly to new development from us companies, and the location is ideal for a number of industries, including textiles, tech, and raw materials. As members of a collectivist society, the vietnamese often prioritise the needs of the group over those of the individual. Vietnam is becoming an increasingly inviting market for foreign investment.
Doing business in vietnam a cultural guide esmond d, smith, jr. According to world banks 2010 data, vietnam has a population of over 88 million, of which roughly 85% is ethnicvietnamese, followed by 3% ethnic chinese who live mostly in the cho lon district of ho chi minh city. International business in vietnam is mainly conducted in english. Angel cantero diane garnier david anson khiem nguyen dinh charline michoulier. British anthropologist mary douglas 1973 proposed a twodimensional ordering of ways of looking at the world. Historical and political setting for more than one thousand years, until a. Greetings man greeting man simple handshake twohanded shakes occur with left hand resting on the right wrist 5. Dos and donts for business practices in vietnam amcham. Top 10 challenges of doing business in vietnam tmf group. That said, the vietnamese can be very flexible and accommodating when situations occur that are. Dos and donts for business practices in vietnam do not compensate anyone for promises compensate them only for provable performance. The diversity among business cultures frequently leads to confusion. Details starting a business in vietnam procedure, time and cost.
Understanding how vietnam business culture operates. Vietnamese slowcook business culture and an american fastfood business culture. By conducting an extensive qualitative study comprised of 8. While vietnam is a land of opportunities you need to have some level of understanding of the vietnam business culture in order to unlock those possibilities. Guidebook to vietnam bureau of educational and cultural. This information is intended to familiarize military personnel with local customs and area knowledge to assist them during their assignment to. Holding the same cultural features with other asian countries, the vietnamese values system is impacted by the thoughts of. Introduction in the last twenty years, the world has become a smaller place and global markets are growing rapidly. Group or inclusion the claim of groups over members, and 2. Understanding vietnamese business culture understanding national culture has become increasingly important in this new era, when the world is more interconnected. Doing business with vietnam guide produced by ima in association with the. Vietnamese slowcook business culture and an american fastfood business culture where time is money, and meetings are for getting down to business. Thirdparty introductions are almost a necessity, as vietnamese people prefer to work with those they know and trust. Business cards are exchanged on initial meetings and should be presented with both hands.
Many policy makers recognize increases in foreign activity of multinational corporations are ac. It reports on the findings of a study of vietnamese businesses in london that has explored the influence of traditional vietnamese culture on business practice. It suggests that irrespective of the changes of historical flows, vietnamese values still retain traditional values. Other major cities include ho chi minh city often abbreviated to. If you intend to conduct business with vietnam, you should be aware of the ways in which its culture differs from that of the uk. They are useful in adding emphasis to what is said. However, working with foreigners and expanding business abroad can be risky for all parties involved. Evaluating and transforming workplace culture in vietnam. Business negotiations between american and vietnamese. Understanding vietnamese business culture and etiquette. School of business international university vietnam.
Cultural atlas vietnamese culture business culture. Second, stable and transitional concepts of culture are delineated as they apply to the. With the vietnamese economy opening up, more and more foreign companies want to invest in vietnam. When visiting a foreign country, one is bound to make mistakes. Discover vietnam consumer trend and insight through our leadingedge online service. In this publication, we hope to provide you with an insight into the key aspects of undertaking business and investing in vietnam and answer many of the questions foreign businesses and entrepreneurs have when making their first venture into the vietnamese market. Use both hands or the right hand only to receive a business card. The culture of vietnam has undergone changes over the millennia. It is, however, polite and appreciated when foreigners use the native language when possible so if you do not speak vietnamese, it might be wise to hire a translator. Abstract this paper investigates the current issues for conducting technology transfer and innovation processes at food processing enterprises in ho chi minh city, vietnam. Business etiquette, language and culture doing business. By the end of this semester, i guarantee you have had many strange experiences and lessons learned the hard way. Vietnams gdp contribution by sectors in 2012 and 20 modified from cityland 2012 and eu vietnam business network 2015 as can be seen clearly from figure 1, the service sector contributed 38% in gdp of vietnam in 2012 where it represents that the proportion of industry was a bit.
Business etiquette, language and culture doing business with. Overview to do business under the investment law and enterprise law, foreign investors are required to obtain. The guide also covers some practical issues faced by investors. Vietnamese colleagues will be interested to know your age so they can address you properly. Vietnam is also a collectivist country and community concerns will almost always come before business or.
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