Doing Business: Do’s & don’ts in Vietnam

Be prepared

Before coming to Vietnam, good preparation is essential. Get to know about the country and its culture, as well as the economic and political climate. Make good use of the knowledge and services available from branch organizations and government authorities. Talk to entrepreneurs with experience of doing business in Vietnam.

Build relationships

Building and maintaining good relationships is essential for doing business in Vietnam. A reliable local partner can speed up the preparatory work considerably.

Understand business etiquette

• Do prepare some business cards, they are important and widely used.
• Do call Vietnamese people by their first name; this usually appears as the last part of their full name (i.e. Mr. Nguyen Van Hai, so call him Mr. Hai).
• Do find reliable interpreters as English is not widely spoken in Vietnam.
• Do not be surprised if Vietnamese people are smiling or laughing, even if you feel that the circumstances do not warrant such behaviour.
• Do show up exactly on the agreed time either for dinner or working meetings, especially at meetings with the authorities and introductory/first business meetings.
• Do avoid conflict (loss of face) and be patient. Very often things do not move at the same pace as in the West.
• Do follow-up immediately in writing any agreement you feel you may have reached. Yes, may not mean “yes”. It may mean “yes, I understand what you are saying”.

Know your challenges

Vietnam has a lot to offer, but there are undoubtedly many challenges in doing business here.

• Understand where to expect challenges: culture and language, laws and regulations, intellectual property rights, trade barriers, logistics, personnel and bureaucracy.
• Develop a solid business plan and do market research: set clear goals and ambitions, know your niche market and know about your competitors. Without this background knowledge, starting a successful business operation is most unlikely.
• Make sure you do due diligence prior to entering into contracts or other commercial arrangements and don’t underestimate the need for quality checks in Vietnam.

Act responsibly

• Corruption can pose a serious barrier for doing business in Vietnam. The Embassy and Consulate General offer counselling to avoid corruption and reduce the risks of doing business in Vietnam.
• The Netherlands Government supports enterprises which implement Corporate Social Responsibility (CSR). Enterprises should put in place a process to integrate social, environmental, ethical and human rights concerns into their business operations and core strategy in close collaboration with their stakeholders.