7 rules for doing business in Vietnam

I am sharing my personal experience. I have been living and doing business in Vietnam for the second year. I am involved in the e-com field in Southeast Asia, co-founder of the Saigon Business Club of Russian-speaking entrepreneurs. Held more than 190 meetings and negotiations with Vietnamese entrepreneurs and accumulated good experience of interaction. After some of them, I came out with a long list of notes for further work and conclusions.

On negotiations, the Vietnamese — it's like a box with a surprise. They are born entrepreneurs and mega-pragmatic people. It is not uncommon to meet Vietnamese people working in one place and at the same time running their own business — the so-called “left-hand business.” However, you cannot make money on them “quickly.”

Rule No. 1. Greeted by clothes and date of birth

The dress code among Vietnamese entrepreneurs is quite strict. We, foreigners, get a discount, but trousers and a long-sleeve shirt — mandatory, no matter how hot the weather is in favor of T-shirts and shorts.

Accessories also play an important role. Everything will be noticed: whether the phone is the latest model (Samsung and iPhone are preferred here), what brand of watch and other “little things”.

Don’t be surprised if you are asked for your date, time and place of birth during negotiations. This is important to the Vietnamese for two reasons. The first — to understand how to politely address you, depending on your age. There are four methods of circulation here. And the second — to see your horoscope: will it be favorable to do business with you?

I have more than once had mismatches in numerology or bazi ruin a deal. And vice versa. Also, the Vietnamese read a person’s character by his gestures, facial physiognomy, haircut and many other signs, and then (in an informal setting, of course!), they can give you your exact description.

Rule No. 2. Win-win negotiations

Vietnamese — friendly and smiling people who treat foreigners well. However, no matter how pleasantly we talked during the meeting, this does not mean anything. According to the Vietnamese, negotiations and business — these are different things. As my experience shows, even a signed contract or cooperation agreement does not guarantee a positive result.

To achieve it, you will have to meet several times, preferably in an informal setting, since the Vietnamese like to do everything consistently and step by step.

It is more effective to conduct negotiations with Vietnamese partners in a win-win format, and their benefits should be greater. In my opinion, a person should speak Vietnamese, so there is more trust and better results. As a rule, this role is played by people who have lived and worked in other countries for many years and have now returned to Vietnam. Here they are called Viet Keo.

Rule No. 3. Hierarchy

As in other Asian countries, the hierarchy here is rigid and clearly defined. No employee will do anything without the knowledge of the boss. One of the peculiarities of the Vietnamese — fear of making a mistake, losing face. If an employee has not done something before, then he will not do it; it is useless to offer and ask for it. That is why, the lower the step on which you “enter” into an organization or company, the less likely there is to rise to the top manager — decision maker.

Jump “over your head” in Vietnam it’s unlikely to work, but you can speed up the process if you act on the principle “money first” good money."

In my opinion, entering the Vietnamese market needs to be strategically planned. Tempered by numerous wars, the Vietnamese will not tolerate condescending or disrespectful treatment. And they have their own motives for making important decisions.

Rule No. 4. A person in the position of "um"

Another feature in the business hierarchy in Vietnam — a layer of young people whom their parents or relatives assign to an influential person as a successor, a junior partner. Moreover, this junior — here they are called "um" — pays for all meetings, get-togethers in restaurants, he is also aware of all matters. And when the senior grows to the next level and leaves for a higher position, "um" takes his place.

If such an “um” appears at your meeting, then most likely you can also resolve cooperation issues through him, he will be aware of all the agreements.

Rule No. 5. Flexible fatalism

The Vietnamese firmly believe in “zuen”. Since this is fate, if something is destined, it will certainly be so. We had an interesting case: we flew to a meeting from Ho Chi Minh City to Hanoi, but we made the wrong date and flew out a day earlier. When we arrived at the place, a connection appeared, a message came from a woman who had scheduled a business meeting here: “Unfortunately, I have to leave, let’s reschedule the meeting to another date.”

We, of course, were very upset, but still checked into the hotel. And there, quite by chance, we met our future partner, also a woman, for the delivery of branded clothing. Later, when we told her about this story, she said that it was “zuen”, that we would have to work together for a long time and well. And indeed, we have been working together for almost a year.

Very often you hear “hen sui” in negotiations, which means “lucky” no luck." You ask, for example, about guarantees, and the answer is: “Hen sui!”.

There is also the “bamboo principle”. Bend strongly if necessary, but do not break. Bend in any direction that is beneficial or necessary now.

Rule No. 6. "Vietnamese dragons"

According to 2022, there are 6 dollar billionaires in Vietnam, in second place among them — woman. More than 50% of leadership positions in the country are occupied by women. They conduct business on a par with men, and even more successfully. Women have great influence in the family. They manage their loved ones almost imperceptibly and masterfully. By nature they are strong and strong-willed. It’s not for nothing that they are called “Vietnamese dragons.” I had a case when a Vietnamese business partner went to the family business on the orders of his mother, and to a much lower position and salary.

Vietnamese women have great influence both in the family and in business.

Rule No. 7. "Roses" and networking

One of the unwritten rules in Vietnam — thank you for the service, even if several months have passed since it was provided. This is called “roses”. For example, a friend introduced you to a person who became your business partner. Is everything okay with you? This means you need to send your friend a valuable gift or money as a thank you — depending on the scale of the service. The time will come, and perhaps they will thank you too. In any case, such a gesture of gratitude will benefit your business reputation and strengthen your friendships. And they decide everything in Vietnam.