Doing Business in Vietnam

Doing business in Vietnam makes for an attractive destination with plenty of opportunity for entrepreneurs setting up their own businesses. The country has a steadily growing economy, which has experienced consistent development in the past few decades and continues to offer significant potential for foreign investors.

In recent years, the country has seen an influx of businesspeople moving to Vietnam to diversify their operations away from China. Vietnam’s population of approximately 100 million people also draws on a large, young and increasingly educated workforce, making it an even more appealing location for expat business ventures. The Vietnamese government has taken steps to amend legislation to encourage foreign business owners to set up enterprises in the country.

Working in Vietnam

Fast facts

Business language

Vietnam’s official business language is Vietnamese. English is spoken in virtually all business circles, but it’s worth hiring an interpreter to assist you in dealing with government departments and other service providers.

Hours of business

Monday to Friday, from 8am to 5.30pm, with a one- to two-hour break for lunch around midday.

Business dress

In Vietnam, your business attire should be formal and conservative. Despite the hot weather, it is best to stick to dark-coloured suits.

Greetings

Greetings in Vietnam typically involve handshakes when meeting business associates and usually only take place between members of the same gender. Some Vietnamese people use a two-handed shake, with the left hand on top of the right wrist. When you’re a male greeting a woman, wait for her to extend her hand first. If she does not, don’t insist on a handshake but rather bow your head slightly.

Gifts

Gift-giving in business is fairly common at the end of a business deal or during a meal in honour of a business partnership. Your gifts should be small but not overly expensive. Ideal gifts include something with your company logo on, or something unique to your home country. Avoid giving money as gifts, as this is generally frowned upon in Vietnamese business culture.

Gender equality

Gender equality in Vietnam is steadily improving, with around a third of Vietnamese businesses now led by women. The government has set targets to increase this figure to 50 percent in the coming years. Despite this progress, women remain somewhat underrepresented in certain business sectors and senior corporate positions.

Read more: Women in Leadership in Vietnam

Business culture in Vietnam

Business culture in Vietnam is very hierarchical. You should show respect towards elders and senior figures at all times.

Greeting

When addressing your business colleagues in Vietnam, it’s important to use appropriate titles followed by the person’s given name rather than their family name. When greeting older colleagues, it is best to bow slightly; younger businesspeople will greet each other with a firm handshake.

Relationships and networking

Personal relationships are key to successful business partnerships in Vietnam, so expect to invest a considerable amount of time getting to know your business associates. In fact, it isn’t uncommon for no actual business to be discussed at initial meetings.

Business cards are exchanged at initial meetings and should be presented with both hands. When giving cards to multiple people, present to the most senior person first with a slight bow. When receiving a business card, you should show proper respect for it and not simply glance at it and put it in your pocket.

Networking is essential in Vietnam. Vietnamese businesspeople prefer to work with those recommended by a friend or business contact rather than be approached directly. You’ll soon find that a broad social network does wonders for your business success.

Business negotiations in Vietnam can sometimes be slow. It’s important to bear in mind that there is often a lot of red tape that has to be contended with when doing business in Vietnam. Furthermore, group consultation can also delay final decisions. Patience is therefore critical when conducting your business in the country.

Saving face

The concept of maintaining ‘face’ is important in Vietnamese business circles. Vietnamese people will go to great lengths to avoid embarrassment (losing face) during business proceedings. Usually, when one person disagrees with another, they will remain quiet to avoid causing a loss of face. Silence is, therefore, a common means of communication in business.

Trust is also important in Vietnam. Business people take each other at their word, and therefore, you should never make promises you cannot keep. Backtracking on an agreement will have a negative impact on your reputation and create difficulty when it comes to future business proceedings.

Timekeeping

The Vietnamese value punctuality. Arriving late or being unprepared for a scheduled meeting is seen as disrespectful. Be sure to plan ahead when doing business in Vietnam. It’s best to arrange meetings far in advance and then confirm the appointment closer to the time.

Local Culture in Vietnam

Dos and don’ts of business in Vietnam

• Do dress conservatively and modestly. Despite the hot weather, Vietnamese businesspeople wear formal business suits.
• Don’t assume your business associates will speak English. While English is widely spoken in business circles, it is recommended that you hire an interpreter to assist you, especially at initial meetings.
• Do present your Vietnamese business associates with a small gift at the end of a successful business deal.
• Don’t backtrack on the terms of a business agreement. Trust is an important element of business relationships in Vietnam.
• Do have your business cards printed in both English and Vietnamese. This shows respect and preparation for the local business environment.
• Don’t rush business discussions. Building relationships comes before closing deals in the Vietnamese business culture.