Business Etiquette in Vietnam for Western Buyers: Cultural Insights

While Vietnamese business culture is welcoming and accommodating, it operates on its own set of unwritten rules that Western buyers must respect. Understanding business etiquette in Vietnam will not only help you make a good impression but also build long-lasting professional relationships that can benefit your ventures in the long run.

Understanding the Importance of Relationships

Business in Vietnam is deeply relationship-driven. While contracts and numbers matter, personal trust and mutual respect hold equal weight in negotiations. Unlike the more transactional approach common in Western business, Vietnamese professionals place significant emphasis on building rapport before discussing deals.

Western buyers should expect multiple meetings, casual conversations, and social interactions before any serious business decisions are made. It is common to be invited for meals or informal gatherings where business is not the primary topic of discussion. These interactions help establish a sense of trust, which is crucial in Vietnam. If you rush into negotiations without taking the time to develop this foundation, you may find doors closing faster than they open.

Business Etiquette in Vietnam Every Buyer Should Know

Since Vietnam is heavily influenced by Confucianism, which emphasizes respect, harmony, and hierarchy above all else in everyday life, this translates to the business world as well. In order to make a good impression and build professional relationships, there are a few business etiquette specific to Vietnam that you need to grasp.

1. The role of respect and hierarchy

Vietnamese society values hierarchy, which extends into the business world. Seniority and titles are taken seriously, and showing the appropriate level of respect is vital when interacting with local business partners. When addressing someone, use their professional title rather than just their first name. If unsure, it is always safe to refer to someone with their surname followed by their designation.

Handshakes are common in business settings, but they tend to be gentler than in Western cultures. If greeting someone older or in a higher position, it is polite to bow slightly while shaking hands as a sign of respect. Eye contact is appreciated but should not be too intense, as overly direct gazes may be interpreted as aggressive.

2. Business meetings and communication style

Meetings in Vietnam are usually more formal than their Western counterparts. Punctuality is expected, though Vietnamese hosts might sometimes be more flexible with time. Arriving on time or slightly early is a sign of respect. Business cards play an essential role in introductions, so ensure you have enough on hand. Present your card using both hands, with the printed side facing the recipient, and take a moment to examine any card you receive before putting it away respectfully.

Vietnamese business communication tends to be indirect. If you are used to the straightforward approach common in Western countries, you may need to adjust your expectations. In this instance, learning to read between the lines and understanding non-verbal cues will help prevent misinterpretations. To enhance your ability to decode these subtle signals, consider the following:

• Not all silence equates to agreement: In Vietnam, saying “no” outright is often considered impolite, so refusals are usually conveyed in a more subtle manner. Phrases such as “we will consider it” or “it may be difficult” often indicate disagreement or hesitation. Or sometimes, a courteous “yes” is also used. Both could be a cover for deeper issues or a wish to avoid conflict. Try posing open-ended questions such as “What are your thoughts on this aspect?” or “Are there any potential challenges we should discuss?” if you notice hesitation.
• Pay attention to body language: Discomfort or a need for explanation may be indicated by a downward glance or a brief pause.  Take in the atmosphere as a whole. If something seems a little ‘off’, it’s worthwhile to take the time to talk about possible unrecognized problems.
• Establish a rapport while actively listening: Informal discussions prior to and following sessions might provide valuable insights.  Be genuinely interested in the opinions of your providers. They are more inclined to be honest with you if they have greater faith in you.
• Don’t mistake indirectness for vagueness: Vietnamese communication often favors subtlety. Instead of asking ‘Do you disagree?’, consider ‘How might we approach this differently?’ or ‘What are the alternative solutions we should consider?’

3. Gift-giving as a business gesture

Giving gifts is a common practice in Vietnamese business culture and is seen as a gesture of goodwill. If you are invited to a meeting or social gathering, consider bringing with you a small present such as high-quality tea, fruit, or items from your home country. This will undoubtedly leave a positive impression. However, avoid overly expensive gifts, as they can be seen as bribery.

When giving a gift to the representative of your Vietnamese supplier, remember to always express gratitude politely. If you receive a gift in return, do not open it immediately; setting it aside to open later is considered more respectful.

4. Dining etiquette and social gatherings

If your business interactions lead to a meal, be prepared for a lively and engaging experience. Vietnamese people take pride in their cuisine, and sharing food is an important social activity. Unlike Western dining culture, where individual portions are common, Vietnamese meals are usually served with many dishes, which are then shared among the group.

The host will often select dishes and serve guests first, and it is polite to wait for the host to start eating before you begin. Chopsticks are the standard utensils, so if you are not familiar with them, it is a good idea to practize before your trip. You must ensure to avoid sticking chopsticks upright in a bowl of rice, as this resembles incense offerings for the deceased and is considered bad luck.

Drinking is often part of business meals, especially when celebrating a deal or building rapport. If toasts are made, it is customary to acknowledge them by raising your glass and making eye contact. The phrase “Mot, hai, ba, yo!” (meaning “One, two, three, cheers!”) is commonly used when toasting.

5. Negotiation tactics and business deals

Negotiations with Vietnamese suppliers can be a lengthy process, as decisions are rarely made on the spot. Patience is important, as pushing too hard for a quick conclusion does not serve you well in the eyes of your partners. The Vietnamese prefer consensus-based decision-making, so expect discussions to involve multiple stakeholders. It is common for business partners to take time to consult with others before finalizing a deal.

Price negotiations are also part of the culture. While Western buyers may be used to fixed pricing, Vietnamese businesses often expect a degree of bargaining. However, negotiations should be conducted with politeness and respect, and so aggressive tactics should be avoided.

Contracts are important, but verbal commitments and trust hold significant value as well. Once a relationship is established, Vietnamese partners are likely to honour agreements even in the absence of rigid legal enforcement. That being said, ensuring clarity in contracts while maintaining goodwill is the best approach.

6. Dress code and professional appearance

Dressing appropriately is another crucial aspect of business etiquette in Vietnam that you should take note of. In professional settings, attire is formal and conservative. Men typically wear dark suits with ties, while women often wear modest, professional outfits. Bright or overly casual clothing is generally discouraged in formal business interactions.

In more relaxed business environments, the dress code may be slightly less formal, but maintaining a professional appearance is always recommended. If you aren’t sure about the dress code, a matching suit is the default.

Collaborate with Trusted Vietnamese Suppliers

Understanding business etiquette in Vietnam goes beyond simply following rules; it is about showing respect for the culture and embracing the way relationships are built. By taking the time to appreciate local customs, you will not only avoid potential pitfalls but also create stronger, more productive business partnerships.

For Western buyers looking to establish a foothold in Vietnam, the key to success lies in patience, respect, and adaptability. Approach business dealings with an open mind, invest in building relationships, and be willing to adjust your communication style. 

Ready to grow your business with the right suppliers? Contact VALO Vietnam today to discover a network of VALO Trusted Vietnamese suppliers.