Vietnam is known for its opportunities and strong potential for business across various industries. With rich natural resources, a young and dynamic workforce, steady economic growth, a supportive business environment, and modern infrastructure, Vietnam has become a top destination for foreign investment. Software development outsourcing, in particular, is booming here.
However, like any country, Vietnam’s unique business culture can be a hurdle for foreign companies unfamiliar with it. Doing business in Vietnam requires more than just finding opportunities—it also involves understanding and respecting cultural norms. Think of it like a meal where the best dishes are served: to enjoy it fully, you need to appreciate the flavors and context. This guide will walk you through the basics of Vietnam’s business culture so you can start your partnerships on the right foot.
Why It Pays to Understand Business Culture in Vietnam
While language barriers can be tricky, cultural misunderstandings often pose a bigger challenge. Success in Vietnam—or any country—requires more than just knowing the market; it requires insight into local customs, values, and behaviors. Understanding Vietnamese business culture can make a huge difference in building successful partnerships.
By learning about Vietnamese culture, you’ll gain insights into how local leaders think, make decisions, and conduct business. This knowledge helps bridge gaps between your expectations and the distinct, sometimes unfamiliar, traits of the Vietnamese business mindset. Additionally, showing respect for these cultural norms builds trust and goodwill, laying the foundation for strong, lasting relationships.
On the flip side, attempting to do business without understanding the culture could lead to misunderstandings, missed opportunities, or even financial losses. That’s why this guide serves as an essential introduction to Vietnamese business culture, helping you make the most of your investment in Vietnam.
Read more: A Guide to Hiring Developers in Vietnam
How Vietnam’s Business Culture Works
Vietnamese business culture involves understanding various unique aspects of Vietnamese society, culture, and etiquette. To succeed, especially in building trust and rapport with Vietnamese colleagues and partners, you’ll want to get familiar with some of these customs and expectations.
Key Business Customs in Vietnam
Greeting Etiquette
In Vietnam, a polite bow or a greeting like “Xin Chào” (Hello) is common. For first-time meetings or formal introductions, Vietnamese people often shake hands, exchange business cards, and provide a brief self-introduction. This gesture helps establish a respectful and professional first impression.
Respect for Seniority
Vietnamese culture places a strong emphasis on hierarchy. Decisions often flow from senior leaders, and respect for older or more experienced individuals is the norm. For example, if you’re given a business card, offer it to the most senior person first with a slight bow. Titles are also used frequently, with individuals addressed by their titles or positions, which reflects the importance of status in Vietnamese interactions.
Body Language
In Vietnam, body language communicates as much as words. It’s best to avoid touching someone’s head or pointing at them with a finger or feet, as these gestures are seen as disrespectful. Crossing arms or legs can imply disengagement, and it’s advisable to avoid public displays of affection in business settings. Keep hands out of your pockets, as this can be viewed as arrogant.
Business Attire
Formal business attire is the norm in Northern Vietnam, with suits being standard for men and conservative attire for women. Southern cities, like Ho Chi Minh City, lean more toward business-casual. In general, formal and neat clothing is always appreciated, especially for meetings or events. Higher-ranking individuals are expected to dress more formally.
Gift Giving
In Vietnam, gifts are a common practice and are considered gestures of goodwill. Practical and modest items are preferred, and if you’re looking for great gift ideas, you can choose something simple yet thoughtful. Vietnamese professionals typically open gifts privately, so don’t be surprised if your gift isn’t opened immediately.
Face-Saving
In Vietnamese culture, “face” is crucial—it reflects one’s dignity and reputation. Criticism or direct confrontation in public is generally avoided. Instead, try to express disagreement subtly, ensuring others don’t feel embarrassed or lose face.
Work-Life Balance
Vietnamese professionals often maintain a healthy work-life balance, with time for socializing and breaks being a standard part of the day. Respect others’ privacy and be mindful of the balance between work and relaxation.
Reciprocation
Reciprocating kindness or favors is deeply ingrained in Vietnamese culture. Acts of support are often returned, building trust and loyalty in both personal and professional relationships.
Punctuality
Vietnamese people may arrive 15 to 30 minutes late, particularly for informal meetings. Scheduling appointments slightly earlier can help accommodate this.
Eating & Drinking
Business meals often include a welcoming tea, shared dishes, and, at times, alcohol. Toasting is common, and it’s polite to raise your glass with others at the table before drinking. Vietnamese people tend to share food, and there is a specific etiquette around passing dishes and allowing the eldest to start the meal first.
With these insights into Vietnamese business culture, you’ll be better prepared to navigate professional interactions and build meaningful connections in Vietnam.
Vietnamese Women in Business Culture
Vietnam has come a long way in closing the gender gap in business. Historically, women were expected to focus on family and home life, but this has shifted significantly. Today, more and more women are joining the workforce and leading businesses, showing Vietnam’s growing support for gender equality.
In a professional setting, Vietnamese women are often seen as humble, respectful, and empathetic rather than highly assertive or competitive. The typical business attire is professional and modest, with natural makeup. For greetings, women often prefer a polite bow over a handshake; if a handshake is needed, it’s polite to let the woman initiate. When meeting for a business meal, choosing a public venue is customary. Additionally, it’s essential to remain considerate in conversations, as even subtle comments can carry weight in a professional setting.
Understanding and respecting these norms can help you build solid relationships and collaborate effectively with Vietnamese partners.
Looking to collaborate with a highly skilled Vietnamese team on your software development project? At EZtek Software, we bring extensive expertise in software outsourcing, staff augmentation, managed services, and full-cycle product development to ensure your project’s success. Reach out to see how we can help your project thrive.
