What can go wrong after starting a business in Vietnam

Without a doubt, it would be a mistake to think that you can do business in Vietnam in the same way as you would back home. Registering a company in Vietnam and starting a business as a foreign entrepreneur is absolutely challenging – it is either total success or complete failure with no middle ground.

As a business owner preparing for registering a company in Vietnam, you should understand that Vietnam has its own set of business practices and cultural norms that require adaptation. Even something that would usually be regarded as common sense in your home country may be met with responses like “Your demands are too high” in Vietnam.

Not understanding business culture in Vietnam can easily lead to frustration. For example, it’s okay in Vietnamese business culture to plan for a very short period of time ahead. For better or for worse, personal relationships play a central role in business transactions in Vietnam. Often, business relationships start as informal meetings over coffee and develop into late-night parties. Instead of LinkedIn, Zalo is often utilized as social media for corporate communication.

There are linguistic and cultural differences in many parts of Vietnam; for instance, Ho Chi Minh City and Hanoi all speak distinct dialects. These cultural aspects should be taken into account when doing business in Vietnam in order to adjust business strategies as necessary. Stereotypes and prejudices based on regional accents also play its role on how individuals act at workplace.

Because the language barrier can often be a significant obstacle for foreign entrepreneurs to do business in Vietnam effectively, especially when it comes to finding suppliers in Vietnam, hiring a third party communication service provider like Vietnamia may help your business speed things up. Often, language barriers can lead foreign entrepreneurs to shady individuals offering help , therefore be sure to verify the supplier's identity before making any payments.

In the end, it takes a crazy amount of patience to succeed as a foreign entrepreneur in Vietnam. Success in Vietnam starts with setting the right expectations, which will help you not give up if you don't see the results you hoped for in time. Before registering a company in Vietnam, keep in mind that the legal process might be difficult, so staying grounded and optimistic is essential.