Doing business in Vietnam

Once a lesser-known nation that was synonymous with war and rebellion, Vietnam has grown to
become a firm favourite with tourists, expats and businessmen alike in recent years. The long,
slender country has established itself as one of the hottest properties in South East Asia, thanks
to a mixture of beautiful scenery, friendly locals, exquisite cuisine and burgeoning business
opportunities.
Facts and figures
Capital City: Hanoi
Population: 91,703,800 (2015 estimate according to The World Bank)
Currency: Vietnamese Dong (VND)
Electricity: 220V/50Hz, two pin plug
Religion: 85% of the Vietnamese population identify as Buddhist, with Catholicism and the
local Cao Đài faith coming second and third, respectively. Other denominations include various
forms of Christianity, Islam and other indigenous belief systems.
Ethnicity: 54 different ethnic groups are recognised by the Vietnamese government, with the
Kinh (Viet) group by far the largest with 86.2% of the populace. Other Vietnamese ethnicities
include Tay, Tai Ethnic, Mường, Hoa, Nùng and Hmong, while there are also Chinese, Malayo-
Polynesian and Austroasiatic populations, among many others.
Climate: The nation is long and thin, meaning it has several different climate zones. The north is
characterised by four distinct seasons, with cold winters (Jan-Feb), hot and humid summers
(May-August) and pleasant, temperate springs and autumns. The central area suffers from
monsoon season between September and February, meaning it undergoes long spells of torrential
rain, while the summers are generally hot and dry. The south has three identifiable seasons, with
the rainy season extending between June and November, the cool, dry period stretching between
December and February and the hot, arid months being comprised of March to May.
Neighbouring countries: Cambodia and Laos to the west, China to the north and the South
China Sea to the east.

Core concepts
Vietnam is one of the most populous countries in Southeast Asia and deeply multifaceted. Its
culture reflects a mixture of local traditions that have come to incorporate the advances of
globalization. These two aspects of modern-day Vietnam often coincide in curious ways; today, a
farmer making traditional offerings to the spirits of his ancestors may burn pictures of mobile
phones and other technological devices that are perceived as valuable to those deceased.
Vietnamese contemporary ideologies have also been significantly shaped by the foreign influences
of both neighboring and Western countries. Despite the many prolonged cultural invasions by
other countries, the Vietnamese sense of national identity has survived and still engenders a strong
patriotism and affiliation from many people. Today, the Vietnamese spirit is independent,
opportunistic and resilient.
Political Difficulties
Vietnam has endured a huge amount of difficulty and suffering in its recent past. Its people are
generally very conscious of this history and take the legacy of past events very seriously. Many
are still impacted by the physical, emotional and economic effects of the American War (known
to the West as the ‘Vietnam War’). The culture does not have a naturally happy-go-lucky feeling
to it, as there remains a collective lamenting felt throughout the society. Yet, to their credit, the
Vietnamese people rarely complain and continue to be motivated and resilient despite having
experienced so much adversity. They are often very stoic and realistic; problems get put into
perspective as almost every family has a story of grief or loss relating to the war. Contemporary
struggles also continue, as much of the population has to work very hard in order to make ends
meet. The average income of a Vietnamese is one-eighth of an average Australian’s.

This consideration should not be misunderstood to give the general perception of Vietnam as a
poor, sad and underdeveloped country. It has progressed incredibly quickly in the last few decades
to have one of the fastest-growing market-based economies in Asia. Furthermore, the current
population of Vietnam is exceedingly young. Roughly 24% of all Vietnamese are 15 years old or
younger while over 50% of the population is under 30 years of age. This means that two out of
three Vietnamese were actually born after the war and are somewhat unacquainted with the
devastation the older generations suffered. The war should continue to be acknowledged as it
continues to play a key role in many Vietnamese people’s identity. However, avoid characterising
all Vietnamese as products of the conflict.

Today, Vietnam is governed as a communist state through a one-party system. Many Vietnamese
support democracy and feel disenfranchised by this government. This is particularly true of those
from Southern Vietnam, which was heavily influenced by Western ideals of individualism and
liberalism. On the other hand, the North of Vietnam is generally considered more conservative,
traditionally minded and complicit with the communist regime. Some Southern Vietnamese
continue to resent those of the North due to events occurring in the war. They may renounce the
communist flag and show allegiance to the flag of South Vietnam (a yellow flag with three red
stripes). This is flown on commemoration days and on the day they call the “fall of Saigon”. They
may also continue to refer to Ho Chi Minh City by its original name of “Saigon”. However, the
current government imposes limits on freedom of speech and does not tolerate disrespectful or
critical comments about Ho Chi Minh. It also officially rejects the Southern Vietnamese flag and
there can be serious implications if one is found in possession of it.

It is important to understand that this dichotomy between the North and South, regarding the
perceptions of historic events and the current Communist Party, can be a very sensitive subject for
Vietnamese. While most Vietnamese in Australia are from Southern Vietnam, people’s opinions
may vary depending on their region of birth, age, education and personal experiences.

Underpinning Interaction
There are a few shared cultural norms that deeply influence behaviour and communication across
the general population of Vietnam. The first is the concept of face. This is the quality embedded
in most Asian cultures that indicates a person's reputation, influence, dignity and honour. By
complimenting people, showing them respect or doing something to increase their self-esteem,
you give them face. Similarly, people can lose face by being criticised or behaving in a way that
is considered socially inappropriate. Therefore, individuals generally act deliberately in Vietnam
to protect their self-worth and peer perception. People speak quite indirectly and politely as one’s
speech is assumed to reflect their virtue.

Many Vietnamese may also have a fatalistic attitude and take a more reactive approach to problems
as opposed to proactive action. This is influenced by the Buddhist belief that what one did in their
previous life determines what they experience in their current life – “to the same degree, they reap
today what they have sown in the past”. This view can make some Vietnamese quite receptive and
resigned to difficult situations, as they may believe the circumstances are the result of a
predetermined destiny.

The value of ‘khiêm’ (modesty) or ‘khiêm tốn’ (modesty and self-restraint) is also central to
Vietnamese life. Vietnamese people often show a great deal of humility by self-humbling and
downplaying emotion and communicating indirectly. This disposition is thought to maintain more
harmony. However, while the Vietnamese may speak quite modestly, they are also observed as
being especially honest.

Social Hierarchies
The Vietnamese do not like to stratify their people into ‘classes’ and prefer to feel unified in their
society. The government’s communist orientation particularly supports this view. Nevertheless, in
reality, there are quite distinguished stratifications in society. Many people were left impoverished
as a result of the American War and the policies of the Communist Party’s governmental regimes.
The differences in wealth between those living in rural and urban areas are becoming bigger. As
such, there is not much of a recognised middle class; people are mostly distinguished as either
‘rich’ or ‘poor’. Brand items are admired and those who are wealthy tend to exhibit their affluence
to differentiate themselves. The term ‘nha que’ (peasant or country person) carries derogatory
connotations. As of a 2014 estimate, roughly 67% of Vietnamese live in rural areas while 33%
live in urban areas. There is a visible differentiation in cultural values between the two lifestyles,
with the urban areas now very commercially oriented and motivated.

There is a general cultural acceptance of hierarchies in society regarding one’s age, gender, status
and education (relating to Buddhist, Confucian and Taoist concepts). Education is highly valued
and often the most respected above all other attainable attributes of status – approximately 94% of
the population is literate. By filial piety, there is also a strong cultural emphasis on the importance
of age. In Vietnam, age determines the grading of respect in many interactions. Often, this can
mean a person has to unconditionally obey seniors or defer to the views of the older person in an
argument. People should not disagree with their elders unless able to do so very respectfully.
China’s Influence
China has had a recurrent influence on Vietnam, significantly shaping the composition of the
country’s traditional culture. The continual efforts by China to assimilate Vietnam have noticeably
Sinicized some cultural customs (such as family systems) and ideologies (through the introduction
of Confucianism and traditional Chinese philosophies). However, the Vietnamese people have
generally always maintained a distinct identity and resisted being subsumed by the influences of
China. It is important to understand this as comparisons between China and Vietnam often make
them seem very similar. However, Vietnamese national identity and culture are determinedly
different.

From their intense and long history of national and cultural survival, the Vietnamese have
developed a strong independent streak. There is a noticeable nationalism in the culture as the
retention of the Vietnamese identity has been such a long-enduring feat. Many people find this a
source of pride. This can make it quite difficult for older generations of Vietnamese to acculturate
to Australia, as there has been a long history of resistance to cultural change.

Greetings
 Address a person by their title and first name when greeting them for the first time.
 People should always be greeted in order of age, with the oldest among the company being
the first acknowledgment.
 The Vietnamese are accustomed to shaking hands. Some Vietnamese might use two hands
to shake by resting the left hand on top of the grasp with the other person's hand. Bowing
the head while shaking hands indicates respect.
 Elders should be greeted especially respectfully. One can hold both their hands while
greeting. If they do not extend their hand, a respectful bow should be made instead. It is
expected that the gaze of the younger person be lowered from the elder’s eyes during the
greeting.
 It is uncommon for Vietnamese women to shake hands with men or each other; therefore,
wait for a woman to extend her hand first when greeting her.
 It is more appropriate to verbally greet someone of the opposite sex and give a brief bow
or nod.
 People usually only hug to greet their relatives or very close friends.
 Questions about someone’s family are appreciated during or after introductions.

Religion
Vietnam is officially declared as an atheist state. While government policies seek to legally protect
the freedom to practice any religion, the Vietnamese Communist Party and State maintain control
over the organisation of religious groups. All religious institutions must register themselves to the
government and are restricted from proselytising. Furthermore, it is illegal for foreigners to
perform religious services without government approval.

Only 19.2% of the Vietnamese population identified with a registered religion in the 2009 national
census, while 81.8% identified as non-religious. However, estimates published by the Pew
Research Centre contend that this figure is unrepresentative and only 29.6% of the population is
non-religious. Of those that did identify with a religion in the census, 9.3% affiliated with Buddhist
and 7.2% identified as Roman Catholic or Protestant Christian. A further 1.5% and 1.1% identified
with Hòa Hảo and Cao Đài, respectively. These relatively new religious movements of the 20th
century are syncretic and have a strong political character. There was also a minority of
Vietnamese that identified as Muslim – commonly Cham Vietnamese (0.1%).

Despite the census figures indicating otherwise, the Pew Research Centre estimates that 45.3% of
Vietnamese people practise folk religions. Other organisations have published statistics that show
roughly half the population following a religious amalgamation of Buddhism, Confucianism and
Taoism. The beliefs of these faiths are often considered to complement and coincide with one
another, referred to as ‘Tam Giáo’ (“triple religion” or the Three Teachings). The unique mix
perhaps explains why some Vietnamese find it difficult to identify with one religion, per se, and
instead classify themselves as non-religious. Many Vietnamese may also not consider their
traditional worship to be a ‘religion’ necessarily, but rather a ‘philosophy’ or way of life. Folk
religions are commonly based on this mixture of Confucianism, Taoism and Buddhism as well as
local beliefs that have been intertwined and incorporated over centuries. There are also deep
superstitious foundations to many Vietnamese people’s practices.

Buddhism
Vietnam typically follows Mahāyāna Buddhism, which differs from the earliest known
formulation originating in India (known as Theravāda Buddhism). Mahāyāna Buddhism
emphasises the ‘Bodhisattva’ ideal of seeking full awakening through attaining perfection in
morality and knowledge whilst endeavouring to assist others on their path towards enlightenment.
Central to its teaching is the acceptance that suffering underpins all existence. As a Buddhist phrase
elicits: “Suffering is as inescapable as a baby’s first tears”. However, one may be liberated from
this suffering by practising the ‘Noble Eightfold Path’. By the Buddhist way of thinking, the way
forward is to be respectful, dutiful and moderate.

The tenets of Buddhism have had a notable effect on Vietnamese society. As the teachings seek to
fundamentally provide followers a method of processing the pain inherent in life, the Buddhist
worldview has offered many Vietnamese a way of understanding and dealing with the hardships
and atrocities experienced in the American War.

Confucianism
As an influence of Chinese rule and the resulting Sinicization of Vietnam, Confucianism plays a
significant role in the faith and personal beliefs of some Vietnamese. This is a body of traditional
practices rather than a religion. The foundations of Confucianism are derived from the teachings
of Confucius, who emphasised the importance of healthy relationships. It promotes the idea that
relationships between people are unequal and that everyone has defined hierarchical roles (for
example, ruler and subject, husband and wife, father and son). When this natural inequality is
accepted and respected, it becomes easier to maintain harmonious, stable relations between
individuals and, therefore, in society as a whole. These core values are reflected in respect and a
sense of duty towards others, as well as maintaining loyalty and honour for oneself and their
family. A major part of daily life for Vietnamese is ancestor worship, as well as respecting their
elders (filial piety).

Taoism
Taoism, also referred to as ‘Daoism’, is rooted in the philosophical teachings of Laozi – a great
thinker from China of the 6th century BCE. The tradition is based on the perception that the
universe is a reality in which everything that exists is connected and emphasises a deep connection
with nature and self-development. While it is difficult to accurately convey in English, the central
tenet of Taoism is that of ‘Tao’ (‘the Way’). The essence of Tao is ‘the One’, namely the notion
of unification and harmony. A tenet of Taoism perhaps most familiar to Westerners is the concept
of Yin and Yang. This explains the world as full of opposites working in harmony, unified in how
they complement one another (e.g. light and dark, high and low, etc.). Taoist beliefs related to
seeking harmony with nature, spiritual immortality and the cultivation of ‘virtues’ manifest
through practices of meditation and in ‘feng shui’.

Folk Religions and Traditional Beliefs

The folk religions of Vietnam have been particularly suppressed over the last century in different
ways. Nevertheless, traditions such as shamanism and soothsaying have revived despite
government disapproval. There are many indigenous traditions common to the people of Southeast
Asia that may also be practised in rural areas, such as totemism, animism, tattooing, teeth
blackening and marriage rituals. Generally, folk religions and beliefs vary between regions and
ethnicities. Some minorities in North Vietnam practise a form of worship that honours all living
things. This philosophy holds reverence for the ecosystem, believing that anything with a lifecycle
(e.g. plant, animal, person) has a soul or spirit.

The traditional beliefs of Vietnam are not institutionalised or systemised. They are usually
structured around the worship of ‘thần’ (spirits, gods or deities). These thần can be represented in
nature or objects. They may also often be guardians or protectors of specific places, people,
lineages and occupations. It is believed that thần have generative powers that can return to a person
positively or negatively depending on how they are respected and worshipped.

A belief common throughout Vietnam is that people are indebted to those that bore their bloodline
and that the deceased can be contacted and honoured. In this way, thần often represent ancestors.
Some people believe that dishonouring one’s ancestors will result in their ancestor’s spirits
interfering with their life, and so many Vietnamese people practise ancestor worship, no matter
their religious orientation. For example, almost all Vietnamese households have an altar honouring
previous generations where incense is burned and offerings are made. Christian Vietnamese
families may worship a Catholic or Protestant saint that has particular importance to them, instead
of their ancestors.
Etiquette
Manners in Vietnam
An emphasis on modesty (‘khiêm’) and virtuousness strongly underpins Vietnamese culture.
However, these values are understood slightly differently in Vietnam, causing manners to be
exhibited in distinctive ways.

The Vietnamese tend only to apologise or thank a person when they truly believe that one’s actions
have indebted them or deserve gratitude. This reflects sincerity and virtuousness. Meanwhile,
small acts of courtesy can actually be interpreted negatively. For example, ritualised expressed in
Western culture, such as “thank you”, “excuse me” and “sorry”, are often automatic responses said
to acknowledge minor incidents and courtesies. This can be considered insincere by Vietnamese,
as the words are not necessarily a genuine apology or gesture of gratitude. Furthermore, verbally
uttering “thank you” to praise may be interpreted as a lack of humbleness.

This cultural difference in manners sometimes leads Australians to perceive Vietnamese as rude
or disrespectful. For example, they may forget to apologise when they accidentally bump into
another person on the street, or they may not give a grateful response when offered compliments
and kind words. However, respect is perceived and exhibited in different ways in Vietnam. People
are expected to defer to status and maintain a modest disposition. Etiquette follows an age
hierarchy that shows acknowledgement of the power balance the old have over the young. The
Vietnamese language itself gives an established lexical system of addressing and interacting with
people respectfully depending on their relationship to one’s self.

Basic Etiquette
Objects should be passed, given or received with both hands together.
Incense is generally only lit for rituals, anniversaries, times of mourning or in temples.
Women are forbidden to touch a Buddhist monk. If they are required to pass an object to a monk,
it is best to pass it through another male or to hold the object with a tissue.
Feet are thought to be the ‘dirtiest’ part of the body. The soles of one’s feet should never be pointed
at another person. One should sit in a way that avoids this.
The top of the head is considered to be the most important part of the human body. To touch
someone on the top of their head, especially a baby or child, is rude and insensitive. Similarly, do
not pass things over another person’s head.
It is considered poor manners/uncivilised for women to smoke cigarettes in public.
In the south of Vietnam, it is good manners to offer food to someone when meeting up with them.
This is usually a token gesture and it is expected that the person politely decline.
Vietnamese people are generally punctual and expect the same standard from others.
Eating
It is common for a Vietnamese person to be humble about their cooking, seen in the common
phrase “bữa cơm rau / dưa” – “a poor meal to invite somebody to”. Offer compliments in return.
At meals, everyone usually helps himself or herself to food that is in the centre of a table.
Drinks are not usually served until after a meal.
Do not rest your chopsticks upright in a bowl of rice as this symbolises the burning of incense
(which is usually reserved for times of mourning).
The person who invites other members of a company out to a meal generally pays for the bill at a
restaurant.
Some Vietnamese may be vegetarian.

Gifts
When giving a gift, the Vietnamese commonly belittle it as being unworthy of the receiver. For
example, they may apologetically say the gift is too small when they have, in fact, spent a lot of
money on it. A common expression is “chút quà mọn” – “a humble gift to give somebody”.
A Vietnamese person may say a gift is from someone else to downplay the role they had in making
the kind gesture. For example, “my wife gave me this to offer you”.
Do not give handkerchiefs, yellow flowers, chrysanthemums or anything black as a gift. This can
be interpreted as a bad omen.
Gifts are given on special occasions such as New Year’s Day.

Do's and Don'ts

Do’s
Expect a Vietnamese person to politely protest or deflect compliments you give them in an
effort to remain humble.
Make an effort to keep discussion harmonious and balanced.
When interacting with a Vietnamese, be sensitive to Vietnam’s history. It is possible the
person you are interacting with may have experienced the struggles of the Vietnam War.
Thirty years on from this traumatic event, many Vietnamese still have physical and mental
health problems from the war. Approach any topic regarding this with sensitivity and
sympathy. It can be seen as taboo to discuss anything related to the war or associated mental
health issues.
Call Ho Chi Minh City “Saigon” in respect of southern Vietnamese and acknowledge that
there are two flags – the communist flag (used on the global stage) and the flag of South
Vietnam.
Try not to be offended if an older Vietnamese person makes frank comments or asks
invasive questions about your personal life. Elders commonly enquire about people’s
relationship statuses. This is generally accepted because of the age hierarchy.
Do not’s
Avoid profusely complimenting people or using very colourful language to praise
something. This can often be interpreted as insincere and may actually cause people to lose
face.
Don't assume that the Vietnamese have a natural alignment with China.
Avoid directly criticising someone or pointing out his or her mistakes. This can quickly
cause a Vietnamese to lose face.
Avoid publicly displaying signs of anger or passion, such as by raising your voice. This
behaviour is generally disapproved of.
Try not to interrupt or ‘fill in’ the silence if a Vietnamese person quietens during a
conversation. Pausing before speaking usually has a purposeful meaning behind it.
Do not break any promises that you have already committed to, verbally or written. This
can lead to a big loss of face and jeopardise a Vietnamese person’s trust and confidence in
you.
Avoid asking personal questions that can seem invasive, such as “Are you married?”,
“Why don’t you have children?” or “How much do you earn?”. Some Vietnamese can
embarrass quickly if they don’t know how to deflect a question they’d rather not answer.
Do not assume that a Vietnamese person wants to talk about the American War. Broach
the subject sensitively if genuinely interested. Moreover, avoid taking a position on the
West’s involvement in the conflict and let them share their opinion.
Avoid referring to the North and South of the country as “two” Vietnams or asking your
Vietnamese counterpart to explain how the divide arose. The subject is very touchy. It is
best not to raise the politics surrounding the situation.
Some Australians have been known to ask where the biggest Vietnamese communities are
in order to find the most ‘authentically Vietnamese’ restaurants and cuisine. Such enquiries
into the migrant community can come across as orientalising if it is not accompanied with
a genuine interest in the culture itself.

Communication
Verbal

Indirect Communication: The Vietnamese are generally observed as being indirect verbal
communicators, often understating themselves to reach their point. However, while there
is less reliance on explicitly descriptive vocabulary, they give strong clues about their
message through their surrounding posture, expression and tone of voice. In Vietnam, the
context of conversations can also provide further meaning to their words, as there are well-
established hierarchies between speakers in the Vietnamese language. For example,
Vietnamese pronouns address the other person in a way that affectionately respects their
relationship and status comparative to one’s self while delivering the message. However,
this form of communication translates differently when spoken in English and can come
across as quite a blunt approach to communication. Vietnamese people also usually express
how they feel quite genuinely and honestly, which can similarly give the perception that
they are speaking very frankly.
Language Style: In an effort to speak modestly, the Vietnamese have a tendency not to use
very colourful expressions. For example, they may say they “like” something instead of
 “love” it, that they feel “bad” instead of “awful”, or that something is “good” instead of
“amazing”. This kind of speech is considered more emotionally balanced. Furthermore,
using very artful words can come across as being too exaggerated and insincere.
Refusals: A Vietnamese person’s preoccupation with saving face and politeness may see
them avoid giving a flat ‘no’ or negative response, even when they disagree with you.
Therefore, focus on hints of hesitation in terms of what is said, how it is said and with what
body language. One can usually find the underlying meaning by asking open-ended
questions.
Agreement: Consider that a ‘yes’ may be spoken to indicate “I hear you” or “I understand”
rather than “I agree with what is said”.
Loud Voices: Speaking in a raised voice or shouting is generally seen as improper or
uncivilised behaviour, particularly when women do so. However, this is generally common
behaviour.

Non-Verbal

Physical Contact: In Vietnam, it is not appropriate to touch strangers unless it is

unavoidable. People also generally don’t hug one another or show any physical affection
to the opposite gender in public. Avoid backslapping and putting your arm around
someone's shoulder. However, people of the same gender may be affectionate with one
another walk if they are good friends (i.e. walking hand in hand).
Pointing: Avoid pointing at people and things with your index finger; this is considered
disrespectful. Use your open hand instead.
Beckoning: To beckon, use your open hand rather than your index finger. To use a single
forefinger with the palm facing up has offensive and threatening connotations to adults and
children.
Arms: It can be considered rude to stand with your hands on your hips or cross your arms
when having a regular conversation with someone.
The Head: The head is considered the most sacred part of a person’s body. It is offensive
to touch another person’s head or pass something over it. Forcing someone’s head to touch
the ground would be an extremely disrespectful (and possibly unforgivable) act.
Feet: Feet are considered the lowliest or ‘dirtiest’ part of the body. Displaying the soles of
one’s feet, resting them on tables, or exposing them to others is considered rude.
Expressions: The Vietnamese commonly show less emotion in their face as they
communicate and often adopt a sombre expression unless something clearly joyful is
happening. Avoid interpreting this as unfriendly.
Eye Contact: It is respectful to defer eye contact away from those who are of the opposite
gender, a higher status or older than you. However, direct eye contact is held and expected
with one’s peers.
Smiling: Smiling can have many connotations in Vietnamese culture. It’s often done as a
way to modestly acknowledge what another person is saying without seeming too over-
enthusiastic. The Vietnamese may also smile or laugh quietly when talking about painful
or awkward experiences. This is a way of non-verbally apologising for the listener’s
possible discomfort and diffusing it. Similarly, people may smile when embarrassed,
apologetic, frustrated or nervous, so consider that a person smiling in a serious situation
may not always be doing so out of happiness or pleasure.
 Gestures: The symbol for ‘okay’ in Western culture (with the forefinger and the top of the
thumb meeting to form a circle, with the other fingers stretched out) means ‘poor quality’
in Vietnam.
Silence: Silence is an important and purposeful tool used in the communication style of
most Asian countries. Pausing before giving a response indicates that someone has applied
appropriate thought and consideration to the question. It reflects politeness and respect.

Other Considerations
 It can be difficult to read Vietnamese emotions as some situations have predetermined
reactions expected by cultural norms. For example, a bride is traditionally meant to exhibit
sadness on her wedding day as it means she is moving away from her parents.
 Older Vietnamese may not ask for help unless it becomes a final resort when all other
options have been exhausted. If asked to assist someone, it can be worth bearing this in
mind before refusing to complete the favour.
 In Vietnam, people dress quite modestly. For example, shorts and skirts usually reach the
knee.
 White headbands and armbands are customarily only worn at funerals.
 Some men may grow a single long fingernail to indicate they are in the middle class and
not a manual worker/peasant.
 Vietnamese babies are considered to be one year old when they are born. This makes the
reckoning of age different for the Vietnamese.
 Most men in Vietnam smoke cigarettes. There is also a high prevalence of gambling and
drinking as these are seen as social bonding activities for men.

Superstitions
 The Vietnamese can be quite superstitious. There are many taboos and omens that people
look out for and try to avoid. Some acts of daily life are approached with trepidation as
they can recall or trigger ‘thần’, devils and spirits. Some cultural beliefs relate to the way
a house is designed or decorated. Other common superstitions are based on the idea that
the success of endeavours is dictated by the way they begin. For example, what happens to
you on New Year’s Day is thought to determine the year ahead. Therefore, people may
actively avoid those who could bring bad luck, taboo objects or situations.

 More specific superstitions generally vary significantly among regions and families. Some
examples include:
 Put mirrors in front of doors to scare away dragons.
 If the first person you see on your way to do business is a woman, you will have bad luck
on your business trip and should try another day.
 Praising a newborn too much can cause the devils to steal it for its desirability.
 Eating a duck fetus egg can reverse bad luck. However, this only works in odd numbers as
eating a second egg after receiving good luck can bring bad luck again.
 If there are pictures of horses in a home or restaurant, the images should be positioned to
make it look like the horses are running into the building, not out the door. This symbolises
prosperity and wealth coming into the building.
  Numbers: The Vietnamese believe the number 9 brings luck. 8 is also considered lucky.
The 1 and 8 of 18, adding up to 9, are considered auspicious.
 Colours: White, black, purple and green have negative connotations of death, evil,
sadness/fragility and jealousy, respectively. Red is the luckiest colour. Yellow also has
particularly happy connotations.

Generally, expatriate Vietnamese who speak English and are acculturated to Australia will not
believe these superstitions. However, many born in Vietnam do. Many life events are planned
around Vietnamese fortune telling. For example, people try to time births, weddings and events to
fall on particularly auspicious years or dates. This often relates to astrology.

Business Culture
Meetings
 Be punctual. If you are late, be sure to make an apology for your tardiness.
 In Vietnam, people generally enter a meeting in order of importance – the highest ranking
person arriving first and so on. The same goes for introductions.
 You are expected to greet everyone in the room individually, even if the group is large.
 Vietnamese colleagues will be interested to know your age so they can address you
properly.
 Receiving Business Cards: Asian culture interprets the respect you show someone's
business card to be indicative of the respect you will show the individual in business. Use
both hands (or the right hand only) to receive a business card. Do not put the card away
immediately. Regard it carefully and place it in front of you on the table until everyone is
seated. Do not put it in the back pocket of your pants as that could be taken as you sitting
on the other person's face. Similarly, do not write on a card unless directed to do so.
 Presenting Business Cards: Use both hands (or the right hand only) when presenting a
business card and make sure the writing is facing the other person. Do not deal out your
cards as if you were playing a game of cards; this risks being interpreted as rude.
 Allow a few moments of social conversation to pass before mentioning business.
 Negotiate in a firm and fair manner; appeal to logic and justice.

Relationship Oriented

Personal relationships play a large role in Vietnamese business culture. Third-party introductions
are almost a necessity, as Vietnamese people prefer to work with those they know and trust. For
them, trust is key to good business. They will be looking for honest commitment to the relationship
from you. Their business networks are often comprised of relatives and peers as nepotism
guarantees trust. They only want to expand their networks with partners they can rely on.

If you display anger or lose your temper, you will lose their trust in doing business with you. All
disagreements or conflicts should be dealt with in the most diplomatic, private manner possible.
Also, be aware that Vietnamese business people may take spoken word as fact. You will lose face
in their eyes if you do not act on your word. It can be very difficult to regain their confidence once
you have broken a ‘promise’.

Considerations

 Workplaces in Asia are hierarchical, based on age and position. Everyone has a distinct
place and role within their business.
 Everyone is consulted before reaching a decision, which can lead to lengthy negotiations.
Remain patient. Don't expect things to be done quickly.
 Most Vietnamese business people are internationally exposed and culturally aware.
However, this may vary depending on ethnicity, age, gender and status.
 Acknowledge the important role women have in the workplace.
 When there is a point of tension or difficulty that can’t be resolved, Vietnamese
businessmen sometimes resort to sitting in silence. This is their way of allowing the
conversation to simmer back to harmony so that there is a clear space for a new topic of
discussion. Westerners often find silence like this awkward. Try to resist the inclination to
interrupt the silence or continue to push the problem.
 To avoid the loss of face, a Vietnamese person may seek to resolve issues in the workplace
indirectly. For example, they may use a third person to reject a proposal, ask for feedback
or discuss problems.
 On the Corruption Perception Index (2017), Vietnam ranked 107th out of 180 countries,
receiving a score of 35 (on a scale from 0 to 100). This perception suggests that the
country’s public sector is somewhat corrupt.

Business relations and negotiations

You’re flying to Ho Chi Minh City for the highly anticipated meeting with Vietnamese
government officials and private counterparts. With Vietnamese phrase book, bi-lingual business
cards and the perfect gift tucked into your carry-on, you wonder…what else will seal the deal in
Vietnam?
Any Vietnamese will tell you to invest in relationships: build mutual respect and comfort first,
business second.
Companies such as Motorola, Intel, and Nike can attest to how success in Vietnam comes from
finding and establishing your place in the relationship web. Like social and familial
relationships, business relationships in Vietnam are best understood as complicated webs of
shared obligations; rights, favors, experiences, and points of accountability rather than vertical
lines of hierarchical power.
With patience and commitment, and communication as a continuous process, don’t count on just
one meeting. The following insights will help you properly build your business in Vietnam.
Building rapport

Creating your place at the table

Even if your company is known internationally, you are an expert in your field, and you’ve been
invited to Vietnam…don’t assume you have earned the respect of your Vietnamese counterparts.
To gain respect, approach your counterparts as equals; practice humility, demonstrate respect in
language and gesture, avoid confrontation, and don’t rush. Gaining and maintaining respect in
Vietnam is like exercising: do it routinely, it does get easier and you are eventually rewarded.
Stop and you find yourself back to square one.
Business introductions
Talking about one’s attributes or accomplishments runs contrary to the Vietnamese values of
modesty and humility. Instead, send a company letter before your meeting that presents bio data
with accomplishments (academic titles, positions held, major deals or projects completed) of the
visiting team members. At an introductory meeting, your Vietnamese counterpart may read a list
of his/her company’s accomplishments. Pay attention, jotting notes while listening. For first
meetings, arrive with your own list of company facts and figures such as mission statement;
number of company offices, employees, years in business, annual growth, to read after your host.
Persuasion
The Vietnamese use indirect persuasion, knowing that pushing too hard can be offensive or
counterproductive. They often use proverbs, parables or anecdotes (which may seem irrelevant)
to describe context or perspective. Listen to the proverb, respond to portions of it you
understand, and continue the discussion with a bridge such as, “Vietnamese language and culture
are so rich. In my country / company, we understand the situation like this….” Doing so creates
opportunity for making room for in discussion for your culture and theirs.
Feedback
Vietnamese generally do not volunteer information or give direct feedback. If you want
feedback, ask a third party familiar with your business dealings (however, be careful what you
say to third parties, as they are the traditional messengers) If you must illicit comment directly
from your counterpart, ask individuals politely and privately.
Negative feedback – Vietnamese do not want to convey bad news or cause loss of face, so it is
challenging to get explicit negative feedback. Look for phrases or gestures that indicate non-
acceptance.
Positive feedback – This is well received if done in a low-key, private manner. Never single out
a Vietnamese for praise in front of others.
Getting to “Yes”
“Yes, yes” in Vietnamese, translates to, “I am listening” and not “OK, I agree”. Verify and
confirm perceived agreements by asking, “Do you agree?”
Vietnamese business negotiations

Persistence
Vietnamese focus on harmony and flexibility. Pressing for an answer or losing your temper will
be counterproductive. At an impasse, count to 20 then delve back into what will likely be a
circuitous conversation vs. a straight line to the finish. The Vietnamese have won long wars
through commitment and attrition (combined with large amounts of bravery). Vietnamese can
stay the course for a long time. Show them that you can too.
Getting around “No”
Vietnamese may express “no” through phrases such as “It’s complicated” or “There’s a
problem”. Many westerners shift into problem-solving mode, but you should be cautious. The
best way to proceed is to express belief in your counterpart’s ability to resolve the problem. You
will build trust and facilitate forward movement, however laborious it may seem. You have
thrown the ball in their court, graciously.
Building consensus
Vietnamese use the phrase ‘xin phep’ to seek permission to contribute to conversation or debate.
Comparable phrases in English might be “If you agree, we thought we might….” or “Please,
allow me to suggest….” These phrases will be noticed.
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