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October 22, 2025

VIETNAM

Don't forget to enter this month's cultural quiz! Simply answer the question below to be in with a chance of winning a cross-cultural book.

"The famous ‘Golden Bridge’ in Vietnam appears to be held aloft by which part of the human body?"

Send your answers to mail@babelgroup.co.uk

Vietnam, officially the Socialist Republic of Vietnam, is a one-party socialist state located along the eastern edge of mainland Southeast Asia. With a population of over 101 million, Vietnam shares land borders with Cambodia, Laos and China, and has maritime borders along the Gulf of Thailand, Gulf of Tonkin and South China Sea. Since the 1986 Đổi Mới (“renovation”) reforms, Vietnam has experienced rapid economic development and urbanisation, transforming from an agrarian to an export-driven manufacturing and services economy.

The capital, Hanoi, is the political and cultural centre, while Ho Chi Minh City (formerly Saigon) remains the country’s largest and most dynamic commercial hub. Both are among Southeast Asia’s fastest-growing cities and popular destinations for expatriates and foreign investors.

Vietnam is linguistically and culturally rich. Vietnamese (Tiếng Việt) is the national language, but over 50 ethnic minority languages are spoken, reflecting deep cultural diversity. Due to historical ties, French retains some use in education and government, while English is now the main business language in major cities, especially among younger professionals.

Vietnam is a rapidly developing, lower-middle-income economy that has become an important link in global supply chains. Manufacturing and exports, particularly electronics, textiles, and footwear are attracting major investors such as Samsung, Foxconn, and Intel. Agriculture remains significant, with rice, coffee, seafood, and cashew nuts as leading exports. Tourism and services have rebounded post-pandemic, supported by the country’s natural beauty and vibrant cities. Emerging sectors include renewable energy, fintech, and e-commerce, supported by a young, tech-savvy workforce and growing foreign direct investment.

Business Culture in Vietnam

Vietnamese business culture remains collectivist and hierarchical, influenced by Confucian values of harmony, loyalty, and respect for authority. The welfare of the group is prioritised over individual ambition, and maintaining good relationships is often as important as business results.

The concept of “face” (giữ thể diện) remains central: avoiding direct confrontation, public criticism, or causing embarrassment is key to preserving harmony. Disagreements are often expressed indirectly or softened through diplomacy.

Personal relationships — or “quan hệ” — play a vital role in building trust and doing business. Time invested in social interaction before formal negotiations is rarely wasted. This interpersonal trust forms the foundation of many business partnerships

However, as more young professionals enter the workforce and multinational corporations expand their presence, workplace norms are gradually shifting toward greater openness, meritocracy, and flatter hierarchies particularly in tech, finance, and creative industries.

Traditionally, Vietnamese organisations favour a paternalistic and hierarchical management style. Managers are seen as mentors and decision-makers who are expected to guide, protect, and look after their employees’ well-being. In return, employees show loyalty and respect for authority.

This approach fosters a strong sense of belonging and teamwork but can sometimes limit open discussion or innovation. To counter this, younger leaders, often educated abroad or working in MNCs, are adopting more inclusive and participative management approaches that encourage feedback, initiative, and collaboration.

In practice, an effective manager in Vietnam today balances respect for hierarchy with empathy and accessibility. Decision-making still tends to rest with senior leaders but listening to staff input and offering mentorship are increasingly valued.

Generational shifts are significant: younger employees (especially Gen Z) expect clarity, frequent feedback, and opportunities for growth rather than rigid control. They value employers who offer flexibility, purpose, and a sense of contribution to wider goals such as sustainability or community development.

Vietnamese communication tends to be high-context, meaning much is conveyed through tone, pauses, and nonverbal cues rather than words alone. Courtesy, humility, and subtlety are highly valued. In business, communication remains formal and polite, particularly when dealing with senior figures. Titles, proper forms of address, and measured language signal respect. Direct criticism or blunt disagreement is still avoided publicly.

However, communication norms are evolving. Younger professionals, particularly in multinational companies, are more comfortable with open and direct exchanges, especially among peers. English is increasingly the working language in international firms, but cultural sensitivity and patience remain essential to avoid misunderstandings.

Developing the ability to “read the air” (to interpret what is meant but not said) remains a key skill for foreign professionals working in Vietnam. Active listening, modesty, and emotional intelligence build trust far faster than assertiveness or confrontation.

Vietnamese etiquette reflects respect, humility, and relationship-building.

• Punctuality is valued; being late can be seen as disrespectful.
• Dress codes are generally conservative, especially in formal business contexts — though younger workplaces are increasingly adopting “smart casual” attire.
• Always greet the most senior person first, using both title and surname. Handshakes are common, though often gentle.
• Business cards should be presented and received with both hands, studied briefly, and not placed immediately into a pocket.

Negotiations are typically patient and relationship oriented. Pressuring for quick decisions or showing overt frustration can be counterproductive. Instead, sincerity, reliability, and long-term commitment earn respect.

Social interactions, including shared meals, are important for relationship-building. Meals are convivial occasions to strengthen trust rather than conduct business directly. If invited to someone’s home, bringing a modest gift (such as tea, fruit, or sweets) is appreciated.

Modesty and emotional restraint in public are admired traits; loud or boastful behaviour can cause loss of face. Even in modern urban settings, demonstrating cultural sensitivity and personal respect - through small gestures and thoughtful communication - remains one of the most effective ways to build durable business relationships in Vietnam.

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