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TABLE OF CONTENTS
Misperceptions
Vietnam Overview
Business Protocols Vietnam
Practices and Local Rules
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FOREIGN INVESTORS
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VIETNAM OVERVIEW
Geography
Mainland Size: 331,690 km
Coastline: 3,260 km (ex. the islands)
People
Young population - 65% under 35 years old
Total workforce: ca 45 millions (of 92.7 millions)
Economy
High growth rates country in Asia
Member of ASEAN, AFTA, ASEM, APEC and WTO
EVFTA, AEC
One of most liberate economies in the Asia
HISTORY
FDI
FDI Enterprises are growing (registered new &
increased investments of $20 billion in 2016)
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11 BUSINESS PROTOCOLS
MEETING PREPARATIONS
When you address the host you should use his title and first name
(professor, chairman, Mr., Mrs., etc.).
Make sure that your host is informed about the positions of the
main persons in your delegation.
Meetings are opened either by the host welcoming the guest or by the delegation
leader thanking the host for the meeting. Then the two parties introduce their
members.
The host and the delegation leader manage the discussion. The other members
participate when they are asked to do so by their leaders.
For the first meeting the Vietnamese side normally starts discussions with an
introduction about their company. Be prepared and be patient, it could take a long
time and should not be interrupted. Then you introduce yourself and your
company, before moving on to discussing the main purpose of the meeting.
The Vietnamese usually prefer going straight to the business point.
Be sure to ask if you dont understand any statements made.
DURING THE MEETING
Be clear and to the point, but behave politely, no negative attitude (anger,
impatient)
Follow formalities as local rules, especially Governmental authorities (business
meetings, ceremonies, events, etc.)
Specific, short and concrete - to the point
Do not interrupt the VNs side as it is not only impolite, but may cause
problems for your interpreter. Instead, note down points and raise them when
the other party has finished speaking.
Ensure good mutual understandings by using a good interpreter
Prepare to be very specific on prices and terms
AFTER THE MEETING
Vietnamese place a great deal of importance on saving face like many other Asian
countries
Foreign businesspeople tends to be rather straightforward, but this often causes
embarrassment and negotiations may end without a result.
If you do not understand your counterparts English, politely ask them to
repeat or clarify the points they made, rather than to say you dont understand
their English.
Never criticize an individual person in the presence of others.
To give a person credit in the presence of others is giving him face. The Vietnamese
are often using this technique.
The Vietnamese are a very proud people, and using small successes to give face is a
very good way to build relations and make friends.
YOUR PRACTICES & LOCAL RULES
BUSINESS ENTERTAINMENT
Meals
You will often be invited to join your Vietnamese counterparts for lunch or dinner.
Agree to such invitations. Vietnamese often like to discuss business when eating. It is a
part of making a deal, like going to Karaoke in Japan.
Some might try to make you drunk, so make sure you have good excuse for not
drinking too much.
The meal is the time to get to know each other personally and build trust and is
especially important for future business
Social communication
It is normal in Vietnam to ask personal questions like family age or incomes. Dont be
offended. If you do not want to answer, just smile and change the subject.
There are very few conversation subjects that are taboo in Vietnam. However, you
should avoid discussing politically sensitive matters in public or during interviews.
GIFTS
Vietnamese appreciate gifts given to show respect, understanding and appreciation. Not
necessarily expensive. Gifts are given to build personal relations, and to show that you
appreciate your partners.
Gifts are expected and should be given during first meetings, high ranking visits or at
special events, normally at the end of events.
No gifts should be given during signing ceremonies or during public appearances.
Don give a valuable gift to a person in the presence of others
It is not polite to open the gift when the giver is present
Gifts should be nicely wrapped. Do not use black wrapping (it is used for funerals)
WHAT GIFTS?
A book, picture or a pen with a motive from your country and/or your company is
OK
Flowers are OK when you are invited to peoples homes (all kinds, as long as they
are beautiful).
The value shows how much you respect your contacts
Practical or useable gifts are appreciated
No knives or scissors.
Promotion gifts might be necessary during seminars, exhibitions, etc... to get the
right participants.
Gifts to the top management: of certain value (watch, phone, pens...)
Gifts to friends: wine, whiskey, perfume...
Verify that your gifts are within your ethical standards!
PERSONAL NETWORK SOCIAL RELATIONS
Personal relations are the base for trust, and are vital for doing business in Vietnam
Build up your personal network by having regular meetings with business partners
and authorities both on official and non-official cases. Try to achieve meetings with
them whenever you are in Vietnam.
Hire local representatives/staff with an established network
Decisions in Vietnam are very hierarchical. The BOSS decides
The boss is ALWAYS a bottleneck.
You must always get access to the boss to make any decisions
Hierarchical levels are important;
Top manager relate with Vietnamese top manager
Mid manager with his opposite level
Project manager with opposite project management, etc.
VERBAL COMMUNICATION
Face to face meetings are crucial for important issues and building trust.
Phone calls tend to be brief and to the point only.
Some managers are still not familiar with the use of Internet and email, preferring
faxes instead. Make sure your requests are written clearly in the fax, and if it is
urgent then dont be afraid to say so.
Use contacts in Vietnam to ensure that faxes and emails are delivered to the right
persons at the earliest possible time.
NEGOTIATIONS
The main task for the Vietnamese team is to clarify and prepare the contract conditions for
the decision maker.
Try to clarify the responsibilities of the negotiation team members. However, in reality they
probably have limited responsibility, and you might embarrass them by asking.
All the time you should focus on improving your relations and understanding of your local
partners and their behaviour.
CONTRACT ENFORCEMENT
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YOUR BUSINESS OPERATIONS IN VN
Whatever you will do you should assume that the whole local community will know about it
Focus on CSR elements when appropriate
Ask the VN partner to procure equipment not included in your contract to build trust and give the yard
some extra turnover
Recruiting staff. Make sure that you are in control of this process.Your key persons has to be selected by
yourself, including your interpreter. Make your own job specifications
Focus on people that have good English spoken skills and good attitude towards Western working
behaviour, and train them to achieve sufficient technical skills
However, make sure that your staff will be accepted by your VN partner, and try to cooperate as closely as
possible with your partner in the recruiting process.
CORRUPTION
Corruption is a problem in Vietnam like other developing
countries
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HOW TO AVOID CORRUPTION?
The main reason that many large Vietnamese companies prefer centralized
procurement is to limit the possibilities for corruption at their subsidiaries.
Make sure that you have 100% control of the procurement process.
Be aware that corruption might take place when hiring staff.
To avoid corruption, use any opportunities to strengthen relations and make long-
lasting friendship with VN partners.
ETHICAL BEHAVIOUR
Be an example for your local staff, and make sure that they follow your rules. (Talk
the talk and walk the walk).
The Vietnamese internal connections are very complicated. They will try to bring in
their family or friends if they have the chance.
Staff with high level connections will be difficult to manage for mid-managers with
lower connections.
As a foreigner you must assume to be watched at all times. Therefore, behave in such
a way that your actions can not be used against you.
Vietnamese workers have shown a strong willingness to learn. Therefore, give
positive and constructive feedback, and they will adapt and improve.