Nguyn Th Qunh Nhi

MARKET LEADER UNIT 7: CULTURE

09CNATM01

SOME CULTURAL CHARACTERISTICS WHEN DOING BUSINESS IN VIETNAM

Vietnam has been joining WTO, and it opens a lot of opportunities to foreign companies who want to do business with Vietnam. With the Vietnamese economy opening up, more and more foreign companies want to invest in Vietnam. However in order to avoid cultural disasters which could make the wrong move in doing business with Vietnam, here are some tips on how you can conduct a more successful business in Vietnam. 1. Exchanging business card. Business cards are a common opening to business meetings . Cards should be presented with two hands to very important officials, but for all others there is no required etiquette. By reading your hosts cards carefully, you can show respect and clarify the function of the person with whom you are speaking. Dont disregard the cards or shove them in your pocket. Basically, treat them with respect but dont obsess over them. In the case of large delegations, the exchange of cards may only take place between the most senior representatives. Other members of the group can exchange cards after the meeting is complete. 2. Shaking hands Business appointments usually begin with introductions and handshakes between men. Only shake womans hand if she extends hers first. Your handshake should be gentle, a strong handshake is perceived as arrogant in Vietnam. Using both hands is special sign of respect and friendship and therefore is not appropriate for initial meeting. 3.Kissing Kissing in greeting is not usual in Vietnamese culture. Most Vietnamese strongly disapprove of public expressions of affection between males and females, although this, too, is becoming common among young men and women.

4. Business Relationship in Vietnam Vietnamese business relationship inevitably becomes a social relationship after a while. Unlike Western business relationship which remains professional and perhaps, aloof, even after a long time, Vietnamese business relationship becomes a social one. The more you share your personal life, including family, hobbies, political views, aspirations, the closer you are in your business relationship. Sometimes, a lot of time is spent discussing matters outside of business, but then a lot of time, the other party is also making up his mind about your deal based on how much he sees your personal relationship with him. 5.Small talk before meeting. Polite conversation and small talk are an important part of establishing relationships in Vietnam. As a high-context culture, Vietnamese want to get to know you as a person before settling down to business. By understanding your background, personality, and interests, they are better able to comprehend your verbal and nonverbal communication, which helps decrease uncertainty and ambiguity in the relationship. This often means that a first meeting--or even the first several meetings-are spent discussing what Americans would consider to be nonproductive topics. Have patience and recognize that their evaluation of you as an individual will bear directly on your success or failure in business dealings. 6.Punctuality. Like most Asians, the Vietnamese have a more extended concept of time than that of most Americans. The agrarian nature of their traditional society focuses on seasons rather than days or weeks. And this tradition is reinforced by the Confucian tradition of respect for earlier generations. Americans measure time by the clock, Vietnamese by the monsoon. Although this is changing somewhat, Vietnamese can still be expected to take a longer view of time and be suspicious of the need for urgency in making decisions or culminating a business deal. 7.Giving presents: Gift giving is important inVietnamese because of the significance of interpersonal relationships in Vietnamese culture. Gift-giving customs depends on the context. If it is private gift for oneVietnamese partner you should give the gift at private occasion or at a business meeting if no other one presents. If you have gift for the whole office or company, you should give it after the business meetingwith the whole offices employee. All gifts should be wrapped, but white or black paper should not be used because these colors are associated with death. Vietnamese may or may not open these gifts when they are received; leave the option to them. If the gift is

especially expensive or unique, you might suggest that the recipient open it later to preclude embarrassment in front of the group. You will also receive gifts and should defer to your host as to whether you should open it when received or not. Regardless of when it is opened or what it is, profuse thanks are always appropriate. 8. Using first name. Vietnamese names start with the surname followed by the middle and lastly the first name. It is important to use titles whenever possible. When referring to one another, Vietnamese people will use the appropriate title followed by the first name not the surname. For example, Nguyen Thi An- Nguyen is her family name, Thi is her middle name, and An is her given name. In formal usage, she is referred to by her given name ("Mrs.An"), not by her family name ("Mrs. Nguyen").