Hints for your first successful business trip to Vietnam
Quick guides
 

THE FIRST THING TO THINK !

Vietnam has become official member of WTO in last 11th January 2007. Complying with commitments of Vietnam in WTO, there will be many coming changes in laws and regulations in Vietnam. As the result, it has made Vietnam economy turning to be a very attractive market for investment and business growth. The are more companies listed in stock market, more states companies are privatized. The economy mechanism has gradually changed into market and dynamic economy. Information from government is nowadays updated and more transparent.

  1. Ministry of Industry & Trade : http://www.moit.gov.vn where you can find updated information, law and regulation, new policies about import/export and commerce
  2. Ministry of Planning and Investment http://www.mpi.gov.vn/ where you can find updated information, legal issues and guides showing you how to invest into Vietnam, how to apply and get investment license, which project Vietnam calling foreign direct investment...
  3. Hochiminh City website: http://www.hochiminhcity.gov.vn - Hochiminh City is an economic hub of Vietnam, a dynamic city. It's very good if you can get more information about this city, where your first business trip may come here.
  4. Hanoi Capital website: http://www.hanoi.gov.vn - Hanoi is the capital of Vietnam. It's a wonderful city.

LET START YOUR BUSINESS IN VIETNAM !

As last research on Foreign Companies with the best chances of succeeding in Vietnam, there are some common conditions:

  1. have a proven track record on the export market and are very adaptable to difficult market conditions
  2. are prepared to invest in the medium term without expecting an immediate return
  3. in partnership with national companies, position themselves to become involved in infrastructure restoration; (*)
  4. and know how to make use of multilateral aid funds (World Bank and Asian Development Bank) and untied bilateral funds (in particular loans from the Overseas Economic Co-operation Fund of Japan (OECF)

Some advatages help your business more successfull in Vietnam:

  1. Keep closed contact with official agencies (*)
  2. Your documents should be presented in French or Engligh - or even better in Vietnamese(*)
  3. The negotiation is long sometime, so do not become discourage too quickly
  4. Individual exploratory missions are the most effective method because they enable companies to better target stakeholders, and direct contact is greatly appreciated. (*)
  5. Companies should not try to close deals too quickly. The Vietnamese prefer to meet regularly with a company before signing a contract. Once the contract is signed, companies should maintain regular contact with their partner in order to ensure that they remain involved over the long term.

(*) You could find them all in Vietpartners Service. Send your enquiry.

GET YOUR MONEY - THE PAYMENT METHOD

Exchange regulations in Vietnam involve specific measures preventing the Dong from being freely convertible into foreign currency. Most exchange operations must be authorized by the central bank. The best currency for billing, or at least the most commonly used, is the US dollar. The best payment method remains an irrevocable letter of credit at sight

YOUR MONEY THERE - THE BANKING SYSTEM

As part of the reform, the most of the commercial banks were established and authorized to perform foreign currency operations. Some major banks like: Industrial and Commercial Bank of Vietnam (ICBV), Agricultural Bank of Vietnam (Agribank), Foreign Trade Bank (Vietcombank), Bank for Investment and Development of Vietnam (BIDV), Saigonbank and Eximbank. .. Vietcombank has been financing most international trade activities since 1963.

  1. Read more about Vietnamese Banking System (Source: Economy Development Reviews)
  2. Read more about Foreign Banks in Vietnam (Source: Vietnam Economic News)
  3. Read more about Vietnam Cash Economy (Source: Vietnam NET)
  4. Read more about Preparation of Vietnam's Banking Sector for WTO Accession (Source: WTO)

THE MOST IMPORTANT TIP - BUSINESS ETIQUETTE

One of the keys to business success in Vietnam is understanding that local customs and behavioural practices have a significant effect on business relationships. While there are few formal limitations to doing business in Vietnam, there are some informal barriers and practices which differ from Western norms. Bureaucratic difficulties are not uncommon, particularly in relation to customs and documentation. However, patience, persistence and sound business advice can help in overcoming these obstacles.

Business Cards

Although Vietnam is not as formal as Japan or Taiwan, business card exchange is an important business process.
  • Be aware that it is very easy to obtain impressive business cards in Vietnam but this does not ensure that the company is legitimate or that the person is credible.
  • If you have a business card which is in English and Vietnamese, it is good etiquette to present the card with the Vietnamese side facing up.
  • Business cards should be presented and received with both hands. It is recommended that you have a large supply of business cards at all times. Several hundred may be required for a visit.

Establishing Contacts & Networks

  • Although the Vietnamese will agree to appointments with unknown contacts, it is far easier if the first meeting is through introduction from a known business contact in Vietnam, through friend or through an official channels. Vietnamese companies may not have access to the internet or other forms of information and feel more secure when the company has been introduced to them.
  • Personal business introductions are a fundamental way of doing business in Vietnam and "cold calling" can often mean that you end up speaking with someone totally unrelated to the issue you wish to discuss.

Business Entertainment

Be aware that that the Vietnamese are a very polite people and will often smile and agree with you when in fact they may not have fully understand what you have said. The smile and head nod are usually to confirm that they acknowledge you have spoken, and may not always indicate a firm agreement. It is advisable to have bilingual sales literature, including business cards and product manuals, for more complex negotiations. It is useful to have an agenda and relevant papers translated in Vietnamese prior to the meeting so both sides are clear on what they wish to discuss.

Eating and drinking are a major part of doing business in Vietnam. Dinners with local agents and customers help to develop networks and cement relationships. Toasting at banquets and after-dinner activities such as singing are common practices. Vietnamese men often smoke during the meal. When cognac or whisky is served at a meal, the custom is for individuals to drink only after a toast is made. The glass should be held in the right hand supported by the left. Returning a toast is standard practice. Common toasts are "Tram phan tram " or "dzo"(empty your glass - 100%) and "Chuc Suc Khoe" (good health). Seating should be arranged. Ensure that guests are invited to eat when each course is served. The guest of honour will be expected to be the first person to make a move to leave the table when the dinner is finished.

Forms of address

Vietnamese will often ask you how old you are at the beginning of a conversation. This is done because there is no one word for "you" in Vietnamese and people need to classify you as either older or younger than themselves in order to determine the correct form of address .

 

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