Building strong business relationships abroad is never easy, and cultural differences are often one of the biggest challenges for foreign investors. Before doing business in Vietnam, it’s essential to understand the country’s customs and traditions to foster trust and long-term partnerships.
Vietnam is one of Asia’s fastest-growing economies, attracting entrepreneurs and investors worldwide. But success here requires more than capital or strategy – it demands a clear grasp of local business culture. Without it, misunderstandings, delays, and missed opportunities can quickly arise.
This guide explores the key aspects of Vietnamese business culture, from meetings and negotiations to communication and etiquette, helping you navigate the market with confidence.
Building Relationships Before Business
Relationships and trust always come before transactions in Vietnam. This concept, known locally as quan hệ, underscores the importance of respect, personal connections, and long-term commitment over short-term gains. In Vietnam’s business culture, business is often seen as an extension of personal relationships, so building rapport is not just recommended but essential. Foreigners with experience in Vietnam frequently advise newcomers to dedicate time to cultivating genuine relationships before pushing for contracts or closing deals.
Negotiations may feel slower than in Western markets because Vietnamese business culture emphasizes multiple layers of consultation and bureaucracy in decision-making. It is not uncommon for discussions to go through several rounds before final approval is granted, which makes patience and persistence essential. However, when mutual connections or trusted referrals are involved, doors often open more quickly, and negotiations can proceed more smoothly.
Communication and “Saving Face”
Vietnamese communication is usually indirect, and a simple “yes” may mean “I understand” rather than agreement. For example, a colleague may nod or say yes to acknowledge your words without actually approving your idea, while silence may signal hesitation or quiet disagreement. Because of this, it is important to observe tone, context, and body language. Direct confrontation or public criticism should be avoided, as this can cause someone to “lose face,” a cultural value that emphasizes dignity and respect. Sensitive issues are best addressed privately and with tact to preserve relationships and trust, which are core values of Vietnamese business culture.
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Gift-Giving Etiquette
Gift-giving is a common part of Vietnamese business culture and a respected way to build stronger professional relationships. Small, thoughtful items such as tea, alcohol, fruit, or gift baskets are well received, but certain things should be avoided. Sharp objects are viewed as symbols of severed ties, while black wrapping paper is associated with mourning. Instead, gifts should be wrapped in red or green, colors that represent luck, prosperity, and renewal. Traditionally, gifts are not opened immediately in front of the giver but later in private.
Business Meetings in Vietnam
Meetings are essential in business culture, but they follow unique customs:
- Punctuality: While punctuality is appreciated, flexibility is common. Always reconfirm appointments a day before, especially if the meeting is outside your office. Avoid scheduling around Tet (Lunar New Year), when business activity slows down.
- Attire: Business dress is conservative. Men usually wear dark suits and ties; women should opt for modest dresses or suits. In Ho Chi Minh City, styles may lean toward smart-casual due to the tropical climate.
- Greetings: Handshakes are common, but always greet the most senior person first. Use titles like “Director” or “Chairman.” For names, remember Vietnamese convention: surname + middle name + first name.
- Business Cards: Present your card with both hands, starting with senior members. Ideally, print cards in both English and Vietnamese.
- Company Introduction: Be ready to formally present your company. Bilingual presentation slides are helpful, and having an interpreter can make a big difference.
Read Related: Top Festival in Vietnam: Mid Autumn Festival, Tet Festival, and Vietnam Public Holidays
Hierarchy and Respect
Hierarchy plays a central role in Vietnamese business culture, where age, seniority, and position command great respect. In meetings, introductions usually begin with the most senior person, who should always be greeted and addressed first. Using proper titles such as Director, Manager, or Chairman is expected, and when formal titles are not known, it is polite to use Mr., Mrs., or Ms. followed by the person’s name. Observing these practices not only demonstrates respect but also helps establish credibility and trust in professional relationships.
Business Entertainment
Much of Vietnamese business culture extends beyond the office. Meals and social gatherings are vital for strengthening partnerships.
- Shared Meals: Dishes are served family-style. It’s polite to try a little of everything. Refusing food or drink can be considered rude.
- Toasts: Drinking beer, wine, or spirits is common. The host usually offers the first toast. When it’s your turn, stand, face the most senior person, and raise your glass with both hands. Keep speeches short and respectful.
- Reciprocation: If you are invited to dinner, it’s expected that you host a return meal of equal quality to show appreciation. Business is rarely discussed at dinner, but it may happen at lunches.
Dining Etiquette
Chopsticks are the standard utensil in Vietnam, although many restaurants also provide forks and spoons. It is important to follow local dining etiquette: never place chopsticks upright in food because this is associated with funerals, wait for the eldest person at the table to begin eating before you start, and always share dishes in the group spirit, since eating separately can be seen as impolite.
Midday Naps at the Office
In Vietnam, the midday nap, known as giấc ngủ trưa, is a practical and widely accepted reset. From factories to office towers, lights often dim around noon and people take short power naps at their desks, on foldable cots, or in quiet breakout rooms. The habit is strongest in physically demanding jobs, where construction crews eat in nearby parks and rest from 12:00 to 14:00 before returning to work. White-collar teams also use brief naps to overcome the humid afternoon slump.
Good etiquette is simple: keep it to 15 to 30 minutes, use an eye mask or headphones rather than loud alarms, and avoid occupying shared spaces for too long. Many Vietnamese employers see short naps as a low-cost way to improve alertness, mood, and afternoon productivity, showing how local workplace culture blends efficiency with well-being.
Conclusion
Succeeding in Vietnam requires more than capital and a business plan. It also means understanding the cultural values that shape every interaction, from negotiations and meetings to gift-giving and dining. Respect for hierarchy, patience in communication, and the ability to build trust through relationships are all essential parts of doing business effectively in Vietnam.
At The Nest Asia, we combine expertise in company incorporation and compliance with deep local knowledge of Vietnamese business culture. We help foreign investors not only set up their businesses smoothly but also navigate the cultural nuances that make partnerships thrive.
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The Nest Asia is a one-stop resource offering comprehensive information, practical relocation advice, cultural insights, valuable connections, and trusted services to help expatriates living in Vietnam navigate the transition, overcome challenges, and build a fulfilling life abroad. Starting your journey in a new country can often feel overwhelming. The Nest Asia is your trusted partner – we’re here to simplify that process and ultimately make Vietnam feel like home for you and your loved ones.
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Disclaimer: The Nest Asia is not an authorized provider of official government or non-government services. The information provided is intended for general guidance only. While we strive to offer accurate and timely information, we make no representations or warranties regarding its completeness or accuracy.
