Basic Principles for the US Businessman in Vietnam:

1. Learn the culture and how to successfully negotiate with the Vietnamese businessman; know the culture in which you are working, or work with someone who does;

• Time seems to be meaningless and have little value, never depend on a Vietnamese Business Associate to be punctual or to fully understand the importance of meeting scheduled milestones;
• Vietnamese drive as demons possessed, yet smile at you on a near fatal miss;
• One does not answer questions as expected;
• Personal contact and friendliness is very important;
• It has been said that the three most important principals for doing business in Vietnam are Patience, Patience and More Patience;
• Life in general, and particularly business in Vietnam, can be more of a challenge than a pleasure for a foreigner uncomfortable in this culture, and who does not have a local partner, the partner must be more than just bi-lingual, he must be fully informed and comfortable to explain such matters, to guide the foreign staff, and to stand up to the authorities who may make unreasonable requests.
• In Vietnam, men sometimes kiss men and hold their hands following a business meeting,
• It is impolite to say "no."; it is preferred to ask someone a choice question ("Do you prefer this or that?"), or a negative-positive question ("You don't like that, do you?"), so you will generate a "yes" response, Vietnamese do not like the “no” word;
• People laugh when they screw-up; Vietnamese will smile at you when they mess up to try to relieve the tension, to smile at such a times is considered insensitive from the Western point of view, and to not accept a smile as a relief of tension is considered to be rude from the Vietnamese point of view;
• Vietnamese value established relationships, they prefer a personal visit to a phone call or a fax letter, they want to know you think well of them to take the time for a visit;
• It is considered rude to refuse to meet, have tea, and discuss even the most routine matter in person.

2. Always begin the business meeting with careful, courteous introductions that include concerns and salutations for the family health and prosperity.
3. Be aware that the concept of saving or not losing face is key to all transactions;
4. Also present your aspirations and concerns in a forthright and honest manner.
5. Understand that the Vietnamese do not like to say “No” or “I Don’t Know” and in many situations will tell you anything to save face and keep from saying the “No” word, BEWARE, in Vietnam one does not usually ask questions unless he knows for certain that the person questioned knows the answer; make sure you present your questions in a manner that beckons a positive answer, and be careful of hard questions, especially at initial meetings;
6. Understand that in Vietnam, discussions and negotiations are extensive, friendly and polite (no load voices and hand waving here) and that decisions are made by consensus, not by any one person;
7. Do not presume there is an understanding in any negotiation unless there have been complete and full discussions on all of your particular points;
8. Corruption is still quite prevalent in the Vietnam business world, but understand that it is not necessary to achieve your objectives, and it carries a severe penalty:

• Pay or receive more that $45,500 USD and forfeit your life if prosecuted, and
• Pay or receive more that $450 USD and you are subject to imprisonment if prosecuted

9. Understand that lengthy contracts with the traditional covenants and warranties will not be understood or well received, and may not be enforced anyway, the Vietnamese like 2-3 page contracts for virtually any size project, typically including:

• The names and contact addresses of the parties;
• An agreement to uphold the laws of Vietnam;
• The business purpose of the agreement;
• An outline of the key obligations of the parties;
• The consideration (funds, deeds, obligations, etc.) paid by the parties; and
• A dispute resolution clause;

10. Be flexible but at the same time, make careful, informed decisions and transaction undertakings;
11. Carefully research brokers who promise you "insider's advantage" and “Quick or Gaurenteed Deals”; GLC will be the first to admit that there are many “companies” attempting to capitalize on the influx of US businessmen; most are not qualified and many are purely scams, BEWARE; and
12. Understand that Vietnam is very much different from other countries in the region, and in many ways is superior for investment due to:

• A very stable government
• A large, young population (~80 million, with over half born after 1975),
• A literate population (90%+ literacy rate)
• A hard-working, trainable, loyal work force
• A geo-politically important location
• A favorable unskilled labor rate ($40 - $55 per month), and
• A favorable skilled labor rate ($100 - 200 per month)

13. Remember the following Survival Tips:

• Keep a sense of humor,
• Do not show anger,
• Be tolerant of mistakes,
• Be generous with greetings,
• Show marked interest in the life and family of one’s associates and workers, and
• Accept responsibility for the emotional and personal well-being of one’s workers and vendors.