If you are an international company willing to explore a new country, the question of dealing with business culture is particularly important to consider.
- How to behave with your client?
- How to best communicate with your partner?
Although Vietnam is the 6th fastest economy in ASEAN, the country’s society is steeped in traditions. Strongly influenced by Vietnamese history, it shows a certain adaptability and is loyal to its unique identity. Overall, people have a collectivistic mindset, with group’s interests taking a more important stage than the individual ones.
You should carefully study the country’s business culture, otherwise you will have some surprising situations such as our clients, who shared their crispy experiences with us below! Thus, this article shares with you the most important cultural aspects you should consider when you want to do business with Vietnamese partners, clients or shareholders.
1. The “Face” concept
The ancient practice of “saving face” is fundamental to Vietnamese culture, guiding the preservation of honor, and respect for oneself and others, even in difficult situations. In business, this concept emphasizes diplomacy and tact, with constructive criticism often conveyed indirectly.
2. Respect for elders
In business, this results in a strong hierarchical structure, where the opinions and validations of senior members are highly influential. Younger generations should show respect towards their elders, referring to the concept of “filial piety”, deeply rooted in the Vietnamese business culture.
3. Building Relationships
Vietnamese business culture is fundamentally built on relationships. Trust, a highly valued asset, is developed gradually through face-to-face interactions and shared experiences. Business relationships often extend beyond the working environment, thriving in social settings such as meals or outside activities.
4. Language barriers, Indirect communication & channels
Vietnamese communication often tends to be indirect, leaving much unsaid and requiring sensitivity to non-verbal cues and nuanced expressions. This approach values the ability to interpret gestures, facial expressions, and subtle changes in tone.
Active listening and empathetic engagement are important for understanding the unspoken messages in conversations.
Using interpreters or bilingual staff members to facilitate communication is a great way to overcome language barriers. Plus, investing in language training for employees can enhance cross-cultural communication, leading to deeper and more meaningful interactions with Vietnamese counterparts.
Vietnamese business culture is fundamentally built on relationships. Trust, a highly valued asset, is developed gradually through face-to-face interactions and shared experiences. Business relationships often extend beyond the working environment, thriving in social settings such as meals or outside activities.
5. Working culture
Understanding the business culture in Vietnam encompasses effectively managing the local workforce. Companies should focus on creating a workplace where Vietnamese employees feel appreciated, respected, and supported; these elements are crucial for enhancing employee satisfaction and productivity.
Adopting flexible, patient, and culturally sensitive business practices helps employees feel more comfortable and empowered in their roles.
6. Business cards
The exchange of business cards takes a central stage during your meeting. Don’t forget to present and receive them with your both hands! You must show that you respect and pay attention to this action.
7. Business meetings
Meetings in Vietnam follow cultural norms that emphasize respect for hierarchy and the importance of collective decision-making. Senior members typically play a leading role in meetings, guiding the conversation and sharing their insights.
8. Business meals
Vietnamese businessmen often dine with partners before and after meetings to create a relaxed atmosphere, to have sincere conversations and helping negotiations.
Before dining with Vietnamese colleagues, note the followings: tea is served at the reception as a sign of hospitality, food is shared from communal dishes, and it’s polite to wait for the eldest to start eating. Meals typically use chopsticks, spoons, and small bowls rather than forks, knives, and plates. Plus, drinking alcohol is a traditional part of business meals in Vietnam!
9. Negotiations
The focus is on building relationships rather than aggressive selling. Establishing trust with Vietnamese counterparts is paramount. Before diving into business discussions, it is customary to engage in small talk and create a personal connection.
Vietnamese negotiators are patient, and negotiations may progress slowly. To succeed, maintain respect, avoid aggressive tactics, and show a genuine commitment to finding mutually beneficial solutions. The emphasis is not only on closing the deal but also on building a strong relationship.
Vietnamese businessmen often dine with partners before and after meetings to create a relaxed atmosphere, to have sincere conversations and helping negotiations.
Bear in mind that this list is not exhaustive, but you discovered the most important aspects you should now regarding Vietnamese business culture, so that you won’t be surprised in similar situations as our clients!
So, what are you waiting for to explore Vietnam? Reach out to us at hello@sourceofasia.com if you want to develop your business or if you want to hear about more interesting stories that happened to our clients due to the cultural differences!
Learn more about our effective recruitment strategies in Vietnam’s manufacturing industry.