Doing business in Vietnam : adapting to local specificities

1/Particularities and traditions

a) Unwritten codes of conduct

• Respect for elders 

Although decision-making is not always clear and power often seems distributed, Vietnamese society remains very hierarchical. Each person plays a specific role and decisions come from the top. It is advised not to send too young collaborators to Vietnam as they may not be respected by the elders. However, this is changing with the arrival of young generations at management level in Vietnamese companies.

• « Face » concept

The concept can be described as a mix of reputation, honour, and also of social status and responsibilities. The main idea is to avoid placing the interlocutor in an embarrassing or humiliating situation. Therefore, errors or inconsistencies should not be highlighted in public for respect.

b) Vietnam’s more or less populist beliefs 

The way to conduct business is different between Western and Asian countries. This is noticeable with superstition. In many ways, Vietnamese people have religious beliefs in life and work’s aspect. For example:

• Prayer rituals at the launch ceremonies for big projects or launch of new shops or offices;

• Some sectors such as real estate hire fortune-tellers as Feng Shui consultants.

Therefore, it is essential to notice and take into account this matter while doing business in Vietnam. 

c) Regional differences

In general, there are business cultural disparities between regions in Vietnam. North region is more hierarchical, and traditional in the manner of doing business. On the other hand, the South and especially Ho Chi Minh City, has an international vision in business due to its history. The city is characterised by its capitalist and business oriented sensitivity.