Business and Life in Vietnam: Expectations, Social Context, and Miscommunication

Because of its fast-growing economy, Vietnam has become a popular destination for expatriates and foreign companies. However, its definitely challenging to operate business in Vietnam due to differences in culture, expectations, and social context. In this article we will look at the key aspects that expats should be aware of when coming to Vietnam to do business, we'll review the importance of cultural sensitivity and adaptability.

To do business in Vietnam in the same way as they would back home is one of the most frequent blunders made by foreign entrepreneurs. This approach often leads to frustration and suboptimal results. Vietnam has its own set of business practices and cultural norms that require understanding and adaptation. Cultural misunderstandings can easily lead to frustration and confusion. For example, what might be considered a simple request in other countries may be met with responses like “Your demands are too high” in Vietnam. Fraud is also not uncommon, and anticipating it is often advisable.

Relationships play a central role in business transactions in Vietnam. Business partnerships often start with casual coffee meetings and evolve into late-night get-togethers. For corporate communication, Facebook and Zalo are often the social media of choice over LinkedIn.

Contracts in Vietnam may not carry the same weight as in Western countries. The outcome of disputes often depends on the relative financial strength of the parties involved. Therefore, maintaining strong relationships and goodwill can be crucial. Setting the right expectations on both sides is vital. The saying “The longer you stay in Vietnam, the more patience you have and the less efficient you become” reflects the need to adapt to a different pace and way of doing things.

There are cultural, linguistic and mental differences between many parts of Vietnam, such as Hanoi, Ho Chi Minh City and Da Nang. These local differences must be recognized in order to modify business plans accordingly.
Prejudices and stereotypes based on regional accents might affect how people behave in the workplace. Improved relationships and fewer misunderstandings can result from a knowledge of these dynamics.

Finally, Vietnam is a rapidly developing country where foreigners can build thriving businesses and live fulfilling lives by embracing the country’s unique opportunities and challenges. However, success requires more than just a “business as usual” mentality. Even though Vietnam offers many opportunities for expats, to succeed in this vibrant and diverse country, one must have cultural sensitivity, adaptability, and a deep understanding of the local context.