Understanding the Vietnamese culture and etiquette for a good business approach

Vietnam has joined WTO opening up many opportunities to the foreign companies that want to widen their own business in Vietnam. With the opening up of the Vietnamese economy many foreign companies are moving to invest in Vietnam. Nevertheless, to avoid "cultural disasters" which could turn the business movement wrong, we list a few suggestions for a business approach with Vietnam

The starting approach? The Vietnamese trade contacts are mainly "on the rebound". Essentially, most of the business relations are based on recommendations by entrepreneurs or business partners of the Vietnamese firm. The same goes for the price negotiation, where the convenience is achieved by means of "recommendations" of other traders in contact with the Vietnamese firm or inside partners?
The contact with the firm, nowadays, can happen in different ways: telephone, Internet, fairs etc. but don't expect to do business with the firms by e-mail or only with the phone. The firms like to look at their potential customer in the eye.

If instead, the business is linked to an investment such as building up a production base, then the first approach will be with the Vietnamese Chamber of Commerce and Industry (VCCI) or with consultancy firms that will supply you with the best solution according to your project and needs.

Business relationship in Vietnam

Unlike the western business relationships which, even after a while they stay as such, in Vietnam they also inevitably become also social relations. The more one shares one's family and personal life, the political preferences, the aspirations the more one is close in the business relationship. Often much time is spent talking about matters that have nothing to do with business, but this strengthens and directs the business relationship between the western side and the Vietnamese one.

The personal relationship and the approach are essential in Vietnam. The Vietnamese entrepreneur gives the same importance to the business as to the person who represents it; therefore if somehow the person isn't liked by the entrepreneur, the business will have no follow up.

The importance of position in the company

The seniority is very important in Vietnam, especially if one has to do with state companies or government bodies. During the talks it's better to face the corresponding persons calling them by their positions in the company: for example president Triet, Manager Nhguyen and so on. Avoid calling them Mr. or Mrs. When you offer your visiting card hold it with both hands and stretch the arms towards the person, making sure he is in front of you.

Respect

This is a very important concept in Vietnam. The right respect has to be given according to the rank or seniority. For example, if you have to make some presents for a commercial approach, make sure you offer more presents or of a higher value to the elder people in the company or with the highest rank. Don't make the mistake of buying the same present for everyone. 

In the same way, sitting around a meeting table or at a dinner table, the position is based on the rank and seniority in the company.
It's better to ask advice before starting your first commercial meeting with the Vietnamese firms so to avoid to make the wrong move.

Business entertainment

Most of the business lunches or dinners are held at hotels or restaurants. Usually your guest will organize a dinner during your first relationship period. It will be kind of you to reciprocate the dinner at your hotel or at a medium-high level restaurant before you leave.

During the lunches or dinners usually one doesn't speak about business. In the Vietnamese restaurants several courses are served. Sometimes the courses are not individual but are big trays at everyone's disposal. Usually the cutlery consists of chopsticks, but one can ask for the normal western cutlery.

Vietnamese beer or imported wine are always available in the restaurants. It's always advisable to make a toast before drinking, where your guest starts first.
When you toast with your guest, stretch your arms and hold the glass with both hands, directing your first toast towards the eldest person or with the highest rank in the company.

A lively but short speech regarding the beautiful Vietnamese cities, the friendly population, the hospitality and kindness of your guest and a prosperous and long business relationship are well accepted.

The following toasts can be made comfortably sitting at one's place.
The end of the meal is marked by a plate of fruit. After you have waited for all the people present to have finished their meal, the guest will be the first to leave the table. Make sure you shake hands with all the Vietnamese participants with a warm thanking.