Vietnam: 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.
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.

Local culture and language

The Vietnamese language belongs to the Mon-Khmer branch of the Austroasiatic family
of languages (along with other tongues such as the Cambodian official language Khmer
and many regional variations such as Khasi and Mundi). It is heavily influenced by
Chinese due to the 1,000 years of Chinese rule from roughly 111 BC to 983 AD, with a
significant proportion of its lexicon borrowed almost directly from its larger neighbour. Up
until the end of the 19th century, Chinese characters were also widely used to transcribe
the language.

However, in the 17th century, a French Jesuit missionary named Alexandre de Rhodes
converted the language into a Roman form, adding accents to indicate stress and tone.
This script was not adopted on a large scale until the beginning of the 20th century,
when education became more commonplace and the Romanised alphabet began to be
taught in schools. Nowadays, all signs are written in this Romanised version and thanks
to many years of French colonialism, the language inherited a multitude of French terms
and words – for example, cà phê meaning café. What’s more, the proliferation of
Western media has also allowed English vocabulary to creep into the language, as well.
Tourist hotspots
 Hanoi: As the second largest city in the country, this bustling capital is a thriving
hub of business and tourism.
 Ho Chi Minh City: Formerly known as Saigon (and still called that name by many
locals), the largest city is the economic heartbeat of Vietnam and also the final
resting place of the Communist leader who gives it its new name.
 Ha Long Bay: Often included on must-see spots of natural beauty around the
world, this beautiful bay is characterised by incredible rock formations rising up out
of the water (see pic below).
 Hoi An: This incredibly well-preserved ancient stronghold of the nation is one of the
few cities to escape damage during the Vietnam war. Nowadays, it’s a picturesque
but overly popular destination teeming with tailor shops and tourist resorts.
 Hue: The stately home of the emperors of Vietnam in times gone past.
 Sapa: This quaint town near the Chinese border is much-loved by tourists for its
idyllic scenery, dominated by rice paddies carved into the sides of the rolling hills.

Etiquette and customs

Thanks to the millennium of Chinese rule, Confucianism is the dominant influence on

Vietnamese customs and etiquette. This revolves largely around comporting oneself
admirably in Vietnamese society, most notably with respect to age and status. All due
respect and deference is paid to those of advanced years, with the oldest members of
any group always being greeted and served first. Their wisdom is sought in important
family or community matters, as well.

In addition to recognising the esteem attached to age, Confucianism also places heavy
emphasis on duty, honour, loyalty and sincerity. Any form of deceitful or selfish
behaviour is seen to damage a person’s dignity and reputation, thus harming their place
in society.

In social situations, there are a large number of expectations placed upon your
behaviour towards your peers in terms of public etiquette. As a foreigner, allowances will
be made if you do not always comply with these codes of conduct, but in order to make
the best impression possible, it is good to bear in mind the following:

Dos
 Pass all items (gifts, plates, food, money) to others using both hands
 Dress respectfully at all times (shorts below the knees, shoulders covered)
 Take off your hats in reverence to all elderly or respected members of society, such
as monks
 Remove shoes when entering homes or temples
 At a restaurant, wait until you are shown to your seat and only sit when the eldest
member of the party has already done so
 Rest chopsticks on the table or on a plate between mouthfuls
 Hold your bowl close to your face when eating
 Try to finish all of your meal – but if you do not like something, it’s better to leave it
untouched than take a small bite and then disregard it
 Rest your chopsticks on your rice bowl when finished with a meal
 Bring gifts (wrapped in brightly coloured paper) when invited to a Vietnamese home
 While tipping is not mandatory, the increase in tourism has made it more
commonplace and it is always hugely appreciated
 Bargain in markets, but once a price is agreed upon, you must buy

Don’ts
 Don’t commit public displays of affection, or even touch a person of the opposite sex
in public
 Don’t touch an adult’s head or shoulders (the head is the most symbolic body part in
Asian culture)
 Don’t point with fingers (use your whole hand)
 Don’t point the soles of your feet towards a person or a sacred object, such as an
image of Buddha
 Don’t stand up chopsticks in your food between mouthfuls or when finished – it
resembles incense sticks that are burned in memory of the dead and is seen as
very disrespectful
 Don’t pass any items over the head of someone else
 Don’t cross your arms in public
 Don’t stand with hands on hips in public
 Don’t bargain in restaurants

Business meetings and management advice

Business dealings are becoming more and more commonplace in Vietnam, as the
country’s economy is expanding at an unprecedented rate. In order to gain the respect
and favour of any prospective business partners in the country, it is important to
familiarise yourself with practices and etiquette that are integral to successful commerce.
Doing so will communicate not only your familiarity with their way of life, but also your
suitability as a partner and will underline your business acumen.

Meeting

The first meeting should not discuss business and should be seen only as an
opportunity to get to know your counterpart and cultivate a good working relationship
with them. While placing hands together and bowing your head is the traditional form of
greeting in Vietnam, it has been all but eradicated by the westernisation of society. As a
result, you should always shake the hand of a person you are meeting for the first time –
especially if they are of the same sex. When meeting a female, you should wait for her to
extend her hand first; if she does not, simply nod your head. Follow your new
colleague’s lead in all matters. If they shake with both hands (left hand placed upon top
of right), do the same.

Business cards

The exchange of business cards is an important ritual in Vietnamese culture. Because of

this, always make sure you bring a business card to exchange at any meeting, no matter
how small or trivial it may seem. Ideally, this will be printed in both English and
Vietnamese and you should always offer it using both hands. When receiving a card
from someone else, accept it with both hands and study it thoroughly before putting it
away to show respect. The translation of all documents into Vietnamese will
demonstrate your regard for your prospective partners and your preparation in the
business world.
Language

No one will expect you to master the Vietnamese language in advance of a business
meeting, but it is considered common courtesy to learn at least one or two words. Even
just the Vietnamese word for hello (xin chào, pronounced sin jow) will indicate your
willingness to adapt to the cultures and customs of the host nation. It is advisable to hire
an interpreter for all formal business interactions, who will often be able to act as a
reference for you in setting up the meeting as well. Appointments are always necessary
and should be made at least a few weeks in advance of the scheduled date.
Negotiations

It is considered disrespectful to openly criticise or admonish someone. If you chastise a

Vietnamese contact in front of others, you will undoubtedly lose that person as a contact.
As a result, many business meetings are characterised by long periods of silence,
wherein attendees disagree with each other but do not wish to cause a loss of face by
openly expressing it. Be patient with the negotiating process and be prepared to have to
go through much paperwork and toil up the hierarchical chain within any Vietnamese
company to reach an agreement. Gifts can often oil the gears of progress, but should
never be lavish or expensive; a company token or goods from your native country are
ideal options.
Expat advice

More and more foreigners are settling in Vietnam due to its combination of pleasant
climate, cheap cost of living, expanding business opportunities and relative safety. If you
are thinking of relocating to this increasingly popular country, there are a few things you
should be aware of:
 Air pollution in bigger cities can be quite severe, so face masks are commonplace
among locals and foreigners alike while commuting outdoors.
 Foreigners are not currently allowed to hire or drive a car without a Vietnamese
driving license. However, motorbikes do not require such a qualification and can be
bought, rented and rode with only a foreign license.
 Land ownership is not available to foreigners. However, expats can obtain a 50-year
lease of a plot of land and then build a house on top of it.
 Gaining a visa is normally a straightforward process; however, there are a handful
of countries which are not able to procure one. The full list can be seen HERE.
 Work opportunities in Vietnam are not bountiful but do exist, for those with relevant
skills and experience. The most common industries are teaching English, computer
programming and NGO-related developmental projects.

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