TRƯỜNG ĐẠI HỌC VINH

TRƯỜNG KINH TẾ
KHOA QUẢN TRỊ KINH DOANH
***

TIỂU LUẬN
GIAO DỊCH ĐÀM PHÁN KINH DOANH

Tên đề tài nghiên cứu:

VIETNAMESE CULTURE IN BUSINESS COMMUNICATION
& NEGOTIATION

Người hướng dẫn: GV. Nguyễn Vũ Minh Thúy

Sinh viên thực hiện: Nguyễn Thị Trà My
Mã sinh viên: 19573401010128
 Lớp: 60B QTKD CLC

Nghệ An, năm 202

CONTENT

Table of Contents
FOREWORD............................................................................................................................................3

PART I.....................................................................................................................................................5

OVERVIEW OF THE COUNTRY AND VIETNAMESE CULTURE; STATE THE THEORETICAL ISUES ABOUT
THE RESEARCH TOPIC.............................................................................................................................5

1.1. VIETNAM OVERVIEW........................................................................................................5

1.1.1. Geography:.....................................................................................................................5

1.1.2. Currency: its currency is the dong (VND)......................................................................5

1.1.3. Language: Vietnamese is the national and official language of Vietnam........................5

1.1.4. Population: Vietnam's population is spreading in the country. Total population at the
end of the year is estimated with more than 98.5 million people....................................................5

1.1.5. Representative Vietnam a huge group of potential customers and staff for many
investors. Hanoi in the north is the capital of Vietnam and Ho Chi Minh City is in The south is
the largest commercial city. Danang, in central Vietnam, is the third largest city and one
important seaport............................................................................................................................5

1.1.6. Legal and regulatory regime:..........................................................................................6

1.2. OVERVIEW OF VIETNAMESE CULTURE:.......................................................................6

PART II..................................................................................................................................................10

HOW VIETNAMESE CULTURE IS EXPRESSED IN BUSINESS TRANSACTIONS AND NEGOTIATION...........10

2.1. Relationships and Respect.........................................................................................................10

2.2. Communication.........................................................................................................................11

2.3. Attitudes and Styles...................................................................................................................12

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 2.4. Sharing of Information..............................................................................................................12

2.5. Pace of Negotiation...................................................................................................................13

2.6. Bargaining.................................................................................................................................13

2.7 Decision Making.........................................................................................................................13

PART III.................................................................................................................................................14

CURRENT STATUS OF DEVELOPMENT AND TRENDS OF VIETNAMESE CULTURE IN TRANSACTION AND

NEGOTIATION ACIVITIES TODAY...........................................................................................................14

CONCLUDE........................................................................................................................................15

References............................................................................................................................................16

3
 FOREWORD

Business negotiation is a crucial leadership and management skill, needed

in a wide range of business contexts, and is highly essential to the
implementation of business strategies . Business negotiation can include, but not
be limited to, deal-making, employment, management talks, contract signing
and issue solving. Business negotiation involves a large portion of problem
solving, where both or all parties try to find a mutual understanding and
willingness to work together and arrive at a solution to a common problem.
Therefore, business negotiation is more than just a discussion; it contains true
understanding and persuading as parts of the negotiating process.

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 Both intracultural and intercultural business negotiations representatives
involve from different organizations working to find an agreeable solution.
However, intercultural negotiations face more difficulties in reaching such a
solution. Culture plays a critical role when it comes to negotiation.
Representatives from different cultures hold differing cultural values, have
contrasting decision-making processes, and have incongruent perceptions of
nonverbal behaviors. Success in the international business arena requires that
one knows and understands the basic features of negotiation, as well as the value
differences in all involved cultures.
Vietnam is becoming an increasingly inviting market for foreign
investment. However, working with foreigners and expanding business abroad
can be risky for all parties involved. The diversity among business cultures
frequently leads to confusion, misunderstanding, and failure in cross-cultural
endeavors. It is therefore important to study business negotiation in a cross-
cultural setting.
During the course “Business Negotiation and Transactions” that I studied
at Vinh University, I realized that it is very important to study my country's
business negotiations in a multicultural context. That's why I personally chose
the topic " VIETNAMESE CULTURE IN BUSINESS COMMUNICATION &
NEGOTIATION ". Although many efforts have been made during the writing of
the essay, due to limited knowledge, errors cannot be avoided. Therefore, the
lecturer is expected to consider and give comments to improve the essay.

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 PART I
OVERVIEW OF THE COUNTRY AND VIETNAMESE CULTURE;
STATE THE THEORETICAL ISUES ABOUT THE RESEARCH TOPIC

1.1. VIETNAM OVERVIEW

1.1.1. Geography:
Vietnam is located in the center of Southeast Asia with a land area of 331,689
square kilometers.
Vietnam is conveniently located in the center of Southeast Asia and borders
China with to the north and Laos and Cambodia to the west.

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1.1.2. Currency: its currency is the dong (VND).

1.1.3. Language: Vietnamese is the national and official language of Vietnam.

1.1.4. Population: Vietnam's population is spreading in the country. Total

population at the end of the year is estimated with more than 98.5 million
people.

1.1.5. Representative Vietnam a huge group of potential customers and staff

for many investors. Hanoi in the north is the capital of Vietnam and Ho
Chi Minh City is in The south is the largest commercial city. Danang, in
central Vietnam, is the third largest city and one important seaport.

1.1.6. Legal and regulatory regime:

- Political structure: Viet Nam is a socialist country operating under the
single-party leadership of the Communist Party.
- Viet Nam’s legal powers are centralised in one supreme body, and then
delegated to lower bodies located in Viet Nam’s 63 municipalities and
provinces.
- The National Assembly is the only body with the power to amend the
Constitution and pass laws but the implementation and administration of
such laws is decentralised.
- One of the Government’s priorities is to enhance the legal system, which
will result in a more business friendly regulatory environment.

1.2. OVERVIEW OF VIETNAMESE CULTURE:

Vietnamese Culture is one of the oldest culture in the World which has
undergone changes almost four thousands of years.

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 Some people said Vietnamese culture has influence from Chinese culture
but there is a study shows Vietnam culture has its own characters and has
parallel development to Chinese culture.
Part of the East Asian cultural sphere, Vietnamese culture has certain
characteristic features including ancestor veneration and worship, respect for
community and family values, and manual labor religious belief. Important
cultural symbols include 4 holy animals: Dragons, Turtles, Phoenix, Unicorn.
The national flower is lotuses and the most popular plant in Vietnam is bamboo.
1.2.1. Vietnamese Cuisine
Vietnamese food is fresh and healthy and getting more and more popular
all over the World. It exhibits great diversity but can be classified into three
primary categories by locations: the north, south, and central regions of the
country.

1.2.2. Traditional costumes of Vietnam

54 tribes in Vietnam has their own traditional costumes. The traditional dress of
the Vietnamese people changed significantly from time to time and depended
largely on the whims and fancies of the region’s rulers. The common people of
the country had greater freedom to choose their clothing prior to the Nguyen
dynasty.

1.2.3. Vietnamese Arts & Literature

Literature in Vietnam has greatly evolved over the years from
romanticism to realism. Two aspects of the literature in the country are the folk
literature and the written literature both of which developed almost at the same
time. Folk literature features fairytales, folk legends, humorous stories, and epic
poems. Written literature was previously written in the Cham and Nom

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characters and focused on poetry and prose. Now, it is mostly written in the
National Language and includes short stories, dramas, novels,...

1.2.4. Religion and philosophy of Vietnam

Most of Vietnamese people worshiping their ancestors and believe in
animism. In the ID most of Vietnamese (about 90%), the line: Religion: None.
Ancestor worship is common in Vietnamese culture. Most Vietnamese,
regardless of religious denomination, practice ancestor worship and have an
ancestor altar at their home or business, a testament to the emphasis Vietnamese
culture places on filial piety.

1.2.5. Social Beliefs & Customs in Vietnam

Family is very strong in Vietnam. Family and clan (Dong Ho) are valued
over individualism.
People in the city talk gently and quietly and people come from the
countryside or from the sea talk pretty loud. They work on the farm or ocean and
they got to talk even louder than the wind or the waves.
1.2.6. Vietnamese music & dance:
Vietnam is associated with a rich tradition of dance and music. Vietnamese
music also exhibits variance in each part of Vietnam. It is older and more formal
in the north while Champa culture exerts considerable influence on Central
classical music and music in the southern part of the country is a livelier affair.
The country has nearly 50 national music instruments. The Lion dance, platter
dance, fan dance, imperial lantern dance is some of the traditional dance forms
of Vietnam.

1.2.7. Ethnic groups in Vietnam

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Vietnam is a multiethnic country with over fifty distinct groups (54 Totally).
Each of them has its own language, lifestyle, and cultural heritage. One
distinctive feature of highland ethnic minority groups in Vietnam is that they are
colorfully attired whether at home, in the farm, traveling or in their home town.
1.2.8. Martial Arts in Vietnam
Vovinam ( Viet Vo Dao) is Vietnam traditional martial art. Vietnam has a very
well-developed tradition of martial arts that has some similarity to Chinese
martial arts. Vietnamese Vovinam martial arts philosophy guides the martial arts
practice in the country. It is associated with intense spirituality because of its
close association with Buddhism, Taoism, and Confucianism.
1.2.9. Festivals of Vietnam
Vietnam has many festivals.
Festivals including both traditional ones and those adopted from other cultures
are celebrated in the country with great pomp and glory. Here is the top 2
festival in Vietnam:
1 -TET Nguyen Dan – TET holidays all over the country
2- Hung King Holidays in March 10th ( lunar calendar)- Phu Tho province
Vietnam celebrates several holidays, totally 14 days of holidays in a year
including traditional holidays which have been celebrated in Vietnam for
thousands of years, along with modern holidays imported predominantly from
western countries.

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 PART II

HOW VIETNAMESE CULTURE IS

EXPRESSED IN BUSINESS TRANSACTIONS
AND NEGOTIATION

2.1. Relationships and Respect

Vietnam’s culture is strongly group-oriented. Individual preferences are
considered far less relevant than having a sense of belonging to a group,
conforming to its norms, and maintaining harmony among its members.
Building lasting and trusting personal relationships is critically important.

‘Saving face’ is crucial. Harmony must be maintained and emotional restraint is

held in high esteem. Causing embarrassment to another person could cause loss
of face for all parties involved and can be disastrous for business negotiations.
Reputation and social standing strongly depend on a person’s ability to control
his or her emotions and remain friendly at all times.
Keep your cool and never show openly that you are upset. Also, consider that a
person’s face is a company’s face – any individual employee’s embarrassment
may be felt by the whole company and could put you in a bad position.
In traditional Vietnamese business culture, the respect a person enjoys depends
on age, rank, and, to a lesser degree, one’s achievements. You will commonly
find leaders in senior roles to be of advanced age.
It is very important to treat elderly people with the greatest respect. Admired
personal traits include patience, humility, and fine manners.

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2.2. Communication
The official language of the country is Vietnamese. It is heavily influence by the
Chinese language but not similar enough to allow mutual communication. Many
businesspeople speak English, though often not well. It can be useful to have an
interpreter. In order to avoid offending the other side, ask beforehand whether an
interpreter should be present at a meeting. When communicating in English,
speak in short, simple sentences and avoid using jargon and slang. It will help
people with a limited command of English if you speak slowly, summarize key
points, and pause frequently to allow for interpretation.
Vietnamese businesspeople usually speak in quiet, gentle tones, and
conversations may include periods of silence.
People rarely respond to a question or request with a direct ‘no.’ Instead, you
may receive seemingly ambiguous answers, such as ‘I am not sure,’ ‘we will
think about it,’ or ‘this will require further investigation.’ Each of these could
mean ‘no.’ It is beneficial to use a similarly indirect approach, as Vietnamese
people could perceive you as rude and pushy if you are too direct.
If you have to convey bad news to the Vietnamese side, a face-saving way is to
use a third party instead of communicating it yourself. Gestures are usually
subtle in Vietnam. It is advisable to restrict your body language. Non-verbal
communication is important, though, so carefully watch for others’ small hints,
just as they will be watching you. Avoid touching other people. Eye contact
should be infrequent. While it is beneficial to make some eye contact when
meeting a person for the first time, the Vietnamese consider frequent eye contact
intrusive and rude. It is generally considered respectful to look down when
speaking with senior and/or older people.

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2.3. Attitudes and Styles
In Vietnam, the primary approach to negotiating is to employ distributive
and contingency bargaining. While the buyer is in a superior position, both sides
in a business deal own the responsibility to reach agreement. They expect long-
term commitments from their business partners and will focus mostly on long-
term benefits. Although the primary negotiation style is competitive the
Vietnamese nevertheless value long-term relationships. Patience and creativity
will pay strong dividends.
In extreme situations, leverage your local relationships to influence your
neggotiation counterpart’s decisions, or use a mediator, ideally the party who
initially introduced you.

2.4. Sharing of Information

In Vietnam, the primary approach to negotiating is to employ distributive
and contingency bargaining. While the buyer is in a superior position, both sides
in a business deal own the responsibility to reach agreement. They expect long-
term commitments from their business partners and will focus mostly on long-
term benefits. Although the primary negotiation style is competitive the
Vietnamese nevertheless value long-term relationships.
Keeping relationships intact throughout your negotiation is vital. It is best
to remain calm, friendly, patient, and persistent, never taking anything
personally. It will also be very important to maintain continuity in the objectives
you pursue, the messages you deliver, and the people you include in the
negotiation.
Should a dispute arise at any stage of a negotiation, you may be able to
reach resolution through emphasizing the benefits to both sides, remaining
flexible and showing willingness to compromise.

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2.5. Pace of Negotiation
Expect negotiations to be slow and protracted. Relationship building, information gathering,
bargaining, and decision making may all take considerable time. Throughout the negotiation, be
patient, show little emotion, and accept that delays occur.
The Vietnamese generally employ a polychronic work style. They are used to pursuing multiple
actions and goals in parallel. In multi-item negotiations, people may bargain and haggle over several
aspects in parallel. It is not unusual for them to re-open a discussion over items that had already been
agreed upon. 
People from fast-paced cultures often underestimate how much time this takes and make the
mistake of trying to ‘speed things up’, which is usually counterproductive. Again, patience and
persistence are vitally important.

2.6. Bargaining
Most Vietnamese businesspeople are shrewd negotiators who should not be underestimated.
Bargaining and haggling are aspects of everyday life, and people may use a wide array of negotiation
techniques competently
Deceptive techniques are sometimes employed. This includes tactics such as telling lies and
sending fake non-verbal messages, pretending to be disinterested in the whole deal or in single
concessions, misrepresenting an item’s value, or making false demands and concessions.
Negotiators may use pressure techniques that include keeping silent, making final or
expiring offers, applying time pressure, or nibbling. Silence can sometimes be effective as a
way to convey displeasure.
Skilled Vietnamese negotiators may remain silent for a long time without showing any
signs of impatience. Final offers may be made more than once and are almost never final.
 Vietnamese negotiators rarely employ aggressive or adversarial techniques since they
affect face. The risk of using any of them yourself is hardly worth the potential gain.
 Negotiators may sometimes use emotional techniques such as attitudinal bargaining,
attempting to make you feel guilty, grimacing, or appealing to personal relationships. Be
cautious when doing this yourself. You might cause the other side to lose face, which could
damage your negotiating position.
At times, defensive negotiation tactics may be used. An exception is directness, which
is rare in Vietnam.

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2.7 Decision Making
Organizations are usually very hierarchical here. However, decision making is normally a
consensus-oriented group process in Vietnam. This can be confusing for Westerners looking to
identify the ‘key decision maker’ in an organization, while in reality such a role may not exist at all. 
When making decisions, Vietnamese businesspeople may not rely much on rules or laws.
They usually consider the specific situation rather than applying universal principles. Personal feelings
and experiences weigh more strongly than empirical evidence and other objective facts do. The
Vietnamese are often reluctant to take risks. If you expect them to support a risky decision, you may
need to find ways for them to become comfortable with it first.

PART III

CURRENT STATUS OF DEVELOPMENT AND

TRENDS OF VIETNAMESE CULTURE IN
TRANSACTION AND NEGOTIATION
ACIVITIES TODAY
Nowadays, with the increasing use of electronic communications, neutral
territory can also mean a virtual territory. Instead of physical meetings, more
and more companies are adopting teleconferencing, videoconferencing, emails,
or phone communication. Vietnam’s companies also follow this trend and hold
some of their meetings virtually. This innovative way of communication can
save negotiators from the psychological stress of working in an unfamiliar zone,
and also from the time and efforts of traveling. Moreover, research has shown
that electronic communication can create a more favorable environment for

15
decision making, save travel time and expenses when the two parties live far
apart .
However, virtual communication requires more time than face-to-face to
develop positive social relationships, which can affect the decision quality.
Additionally, virtual territory and electronic communication may not work as
well cross-culturally. Many countries, including Vietnam, are high context
cultures that have a more indirect style of communication that is heavily based
on context and nonverbal cues. Without seeing each other face-to-face, it is very
hard to read between the lines and avoid ambiguity. Therefore, electronic
communication between Vietnamese and American should be used only when a
certain level of trust and understanding has already been established, or to set
the stage before the final decision-making meeting is held at a physical site.

CONCLUDE
Working with foreigners and expanding their business abroad can be risky
for all parties. When business executives from around the world meet in person
to establish joint ventures or negotiate contracts, communication problems can
arise. Different cultures with different rules can hinder the business process in
the most unexpected ways. Diversity across business cultures often leads to
confusion, misunderstandings, and failures in cross-cultural efforts. Therefore, it
is necessary to study business negotiation in a multicultural environment.

16
 References
1 http://www.inquiriesjournal.com/articles/1029/business-negotiations-
between-american-and-vietnamese-businesses-the-influence-of-
proxemics-and-site-setting-on-negotiation-outcomes
2 https://www.pwc.com/vn/en/publications/2020/pwc-vietnam-dbg-2020.pdf
3 https://www.travelvietnam.com/blog/overview-of-vietnamese-culture.html
4 https://www.google.com/search?q=v%C4%83n+h%C3%B3a+vi
%E1%BB
%87t&sxsrf=AOaemvKX7T9ZJXwmZ8bIBcnB6FROhQ7mKg:1642671
755421&source=lnms&tbm=isch&sa=X&ved=2ahUKEwja-
tqThcD1AhVozYsBHbM4A2wQ_AUoAXoECAIQAw&biw=786&bih=5
16&dpr=1.5
5 Book “Negotiating International Business - The Negotiator’s Reference
Guide to 50 Countries Around the World” by Lothar Katz.
6 https://culturalatlas.sbs.com.au/vietnamese-culture/vietnamese-culture-
business-culture

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