THINGS TO KNOW ABOUT WORK CULTURE IN VIETNAM

Vietnam, in recent decades, emerged as a potential market and an ideal destination for foreign businesses. Particularly in the software outsourcing industry, this country is considered a rising star with its advantages in cost-effective, high-quality software development solutions. 

However, from my perspective, the barrier for international enterprises when deciding to cooperate with Vietnamese companies is the difference in time zone, language, and especially culture. 

In this writing, I want to discuss the work culture in Vietnam and some strategies to collaborate effectively with Vietnamese companies. 

The Role of Understanding Work Culture Before Co-operating 

As you know, every nation has a unique culture that has a significant impact on how that nation does business. 

In case you are working with businesses from any country for the first time, including Vietnam, it is critical that you learn about the country's culture and traditions. 

Being aware of Vietnamese work culture helps you avoid cultural obstacles and establish strong connections with business partners. Then, you may develop and maintain strong business ties with the Vietnamese company you work with and grow local clients, resulting in the greatest possible cooperative performance as well as opening up new business opportunities. 

Typical Characteristics of Vietnamese Work Culture 

Greetings 

"Xin Chao," which means "Hello," is usually used to greet others. Another common form of greeting in the working environment in Vietnam is a handshake. Also, when greeting your partners, slightly bow your head to show your appreciation and respect. Vietnamese people appreciate being addressed in their mother tongue first, followed by a handshake and a slight bow. 

Punctuality 

Being on time is critical when collaborating with a business in Vietnam. Vietnamese employees are generally punctual, particularly during business meetings. However, it is typically acceptable to be around 5 minutes late. 

Business Relationships 

In Vietnam, seniority and respect are crucial concepts in Vietnamese business culture. The Vietnamese value senior members, company positions, years of experience, or age. Companies in Vietnam typically have a hierarchical business structure, with authority and decision-making delegated from the top. Most Vietnamese people frequently believe they need to respect those who are older than them. 

Teamwork Spirit 

Vietnamese people work extremely well in groups and form close bonds with their coworkers. They view the workplace as an extended version of their family. It can be said that they are capable of being highly competitive and have high work performance. Furthermore, Vietnamese people are well-educated, have a strong work ethic, and are self-motivated. 

Wide Variation in Vietnam's Work Culture 

Because of the rapid transition to a free-market economy and the increase in foreign direct investment, Vietnam currently has a diverse range of work cultures. 

Vietnam offers numerous opportunities for professionals to perform restructuring in business. The Vietnamese people always try tirelessly to apply best practices such as Agile and standard operating procedures to their projects. 

Why Does Vietnam Become the Favorite Choice of Foreign Businesses? 

Vietnam is an ideal choice for many international enterprises, especially for those who are looking for expanded IT outsourcing teams. Apart from the above work culture characteristics, there are several main elements below that contribute to this: 

Political Stability 

In fact, Vietnam has maintained political stability under the control of the same party for more than 30 years. In particular, its advantageous position in the Asia Pacific area can foster a welcoming business environment for a variety of sectors, including software outsourcing. 

Young and Talented Workforce 

Vietnam is one of the countries with a young population with a high percentage of people of working age. The Vietnamese government focuses on education investment, including teaching both expertise and foreign languages to students at a very early stage. In general, Vietnam can supply workforce not only quantity but also quality to the domestic and international markets. 

Competitive Labor Costs 

Labor costs in Vietnam are still cheaper than in many of its surrounding areas. For example, in IT outsourcing, the charge is even 50% lower than in China and 30% lower than in India. When choosing Vietnamese vendors as your partners, you pay a competitive price level while getting top-quality outcomes. 

Tips on How to Work More Effectively with the Vietnamese 

1. A consensus is essential. That is why many levels are consulted before making any decision, which can result in drawn-out negotiations. So be patient! It may take longer than you think! 

2. Vietnam has hierarchical workplace structures depending on rank and age. Each person has a specific location and function inside their company. 

3. For Vietnamese people, the concept of "face" is important. So when giving positive or negative feedback, it should be done privately. 

4. Businesses in Vietnam always focus on building solid trust and relationships. With Vietnamese managers, loyalty and attachment to employees are the top factors.  

5. Consider adopting the local style of management, which could help to ensure the best possible outcome. 

In Short 

To make sure you have a successful business partnership and create long-term relationships in any country, having an insight into its business culture is essential.  

Specifically, in the offshore software development sector, getting to know the customs and traditions of Vietnam helps you a lot in choosing the best appropriate provider to build scalable teams for your projects.  

Send us an email or call one of our helpful experts if you need more practical assistance building your high-quality offshore software team in Vietnam!