Are you considering starting a business in Vietnam as a foreigner? Understanding the intricacies of launching and running a small business in a new cultural and legal environment can be challenging.
According to Sophie Dao, Senior Partner at GBS – Global Business Services LLC, an investment consulting firm in Vietnam, while many local startups expand their businesses internationally, there are also numerous foreign entrepreneurs who have successfully established businesses in Vietnam. However, the process of starting a business in Vietnam as a foreigner remains a significant question for many aspiring companies.
When venturing into the Vietnamese business landscape, it’s crucial to navigate through language, culture, and legal considerations. This article aims to shed light on these vital factors and provide insights into the question of “How to start a business in Vietnam as a foreigner?”
Understanding the business culture in Vietnam is key to launching a successful venture as a foreigner. Business culture is often regarded as the soul of an enterprise, influencing production activities, business decisions, and both internal and external relationships. Vietnam, situated in the Eastern cultural region, boasts a distinct agricultural culture with characteristics deeply rooted in Eastern traditions.
When engaging with Vietnamese partners, introducing yourself and sharing personal details, such as your age, is a common practice. This allows Vietnamese individuals to determine their roles in the conversation, considering the abundance of personal pronouns in the Vietnamese language.
Gift-giving holds significant cultural importance in Vietnam. During Vietnamese Tet holidays, presenting gifts and greeting cards to partners and associates is a customary gesture that strengthens relationships.
Sharing meals is an integral part of community and business activities in Vietnam. Having dinners with local representatives or customers not only aids in relationship development but also helps you understand the local culture.
The etiquette of drinking in Vietnam is unique. Drinking alone is considered impolite; it is customary to toast before taking a sip. Additionally, during work, Vietnamese counterparts often express the need to consider decisions, so sending necessary documents before meetings can expedite the decision-making process.
Initiating negotiations often involves casual conversations unrelated to the main discussion, which is considered a way of ‘creating atmosphere.’ Avoid impatient behavior during this phase. Moreover, it is advisable not to bring up legal aspects or mention your lawyer during negotiations, as Vietnamese counterparts may find this off-putting.
Understanding the slow-paced approach to business situations in Vietnam is crucial. The leisurely attitude towards time, known as “rubber hours,” is a common practice among modern Vietnamese individuals. Patience and adaptability are key virtues when navigating the business landscape in Vietnam as a foreign entrepreneur.
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Source: Vietnam Insider