Vietnam is a developing country in South East Asian with the economy having many challenges and advantages. If you want to do business here, should prepare carefully for some challenges to come over.
You may encounter basic infrastructure in the more regional parts of Vietnam. Ensure that your plans account for this, and you should have a decent understanding of the limitations. In urban centers, infrastructure is relatively modern and convenient. Especially, there are some modern traffic projects such as Metro Lines, rapid bus, bridges, etc. which are constructed to push the economic development.
Laws and regulations
There are numerous ‘grey areas’ in Vietnamese laws. This may cause difficulties in interpretation, application and compliance. It is possible for you to find a local partner early who can help you understand and deal with the regulations, permits and laws.
Do research and plan carefully
In most emerging markets, the level of bureaucracy can be challenging. This impacts many investors when they consider the business in Vietnam. It is better if you do your research beforehand to get an understanding the most critical permits you’ll need. Ensure that you fully understand how to comply with all the local regulations.
It’s necessary to be patient when you deal with Vietnamese people. You need to know that negotiations can take some time, and most decisions have to go through group consultation. The processing of official documents and permits can also take a long time.
When someone disagrees with you, they are likely to remain silent. This is a cultural trait typical of several Asian countries that means to save face of the partners. Besides, kiss and hug are not popular in Vietnamese community, especially the traditional people.
In Vietnam, the relationships in business are extremely critical to success. The businessman should invest time in building solid relationships based on both personal and business lines. Eating and drinking together is an important part of business introductions.
The order of a Vietnamese name is family name, middle name and then given name. Therefore, it is quite difficult for the foreigners to call your local partner’s name. Thus, just use his or her given name with the appropriate title or ask his/her English name to communicate easily.