The crowd at the AMX Seminar at the Hanoi Daewoo Hotel on December 3, 2014.

Building a Brand in Vietnam

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Building a successful brand in Vietnam (or anywhere) requires having a clear idea of local consumer (and by extension, social) norms, trends, and perceptions (i.e., market in general) in addition to understanding the local, regional, and national cultures for successful positioning in a country. Yes, conspicuous consumption exists here in Vietnam but for many brands, simply copying and pasting a western marketing campaign won’t work beyond luxury brands that convey a sense of status to those around the targeted consumer. Sometimes, understanding a market means a change in mindset.

This week we are taking a look at three modern scenarios: the first, a globally known brand seeking to capture market share in Vietnam; the second, a local brand growing domestically (and which could eventually lead to the third scenario); and the third, a local brand entering foreign markets (which will most likely increase in the future). We’ll also explore some potential ways forward for Vietnamese companies in the future.

Global Brand to Local Market

Earlier this month, we were invited to the first ever AMX Seminar in Hanoi, which was followed up by a similar version a few days later in Ho Chi Minh City (HCMC). The audience in Hanoi was primarily comprised of 20-30 Vietnamese Systems Integrators (SI) with less than five foreigners in the audience. After the half-day presentation, we were asked to give feedback on the potential for the AMX brand in the Vietnam market and how to improve service and support overall.

In short, the event was a solid step toward establishing the AMX brand in Vietnam but it won’t be an easy win in this market as Crestron, Savant, and Extron are all available here as well—not to mention local and/or less expensive offerings. So, there’s definitely opportunity for AMX (and any technology brand) to establish itself as a market leader and ride the growing economic wave here—but it will have to be in a personalized manner that resonates with Vietnamese stakeholders and/or expat decision makers.

These technology brands don’t have counterfeit and quality issues to deal with because their products are sold through authorized dealers and country distributors. For other industries, such as cosmetics, there exists a trust deficit: how do local consumers know the products that they are buying are authentic? Thus, consumers prefer hand-carried cosmetic items from trusted friends or associates who are traveling to Vietnam from more developed markets such as Hong Kong. After all, skin and eye products are the ones that you don’t want to be cheap on.

Local Brand to Local Market

Another company that is building a (completely) new brand here in Vietnam is Emigo, which is owned by VinFashion of Vingroup. The Emigo brand was launched earlier this year and it already has two open locations including Vincom Center Ba Trieu and Vincom Mega Mall Times City. Approximately four additional locations are slated to be opened throughout Hanoi in the near future.

The Emigo brand has the potential to make an impact on the fashion scene here since its offerings are more affordable than brand name imported clothing lines (its designs are similar to Zara or H&M) and there is always an element of national pride in buying from a Vietnamese brand. It remains to be seen how the Emigo brand will be built domestically but for sure Vietnamese shoppers will want to inspect the materials and quality of the real products for themselves before deciding whether or not to buy into the brand.

If Emigo can resonate with local consumers then it might be able to build momentum here and expand abroad—if those are indeed the plans that VinFashion has in store for the brand. Still, could we see Emigo products in western stores one day? If so, then perhaps the clothing label will read “Created in Vietnam” in addition to “Made in Vietnam.”

Local Brand to Global Market

Brands coming into Vietnam have the advantage of prestige and case studies in western markets—but what about the reverse situation? How would a Vietnamese brand fare in the global marketplace? When foreigners hear “Vietnam,” what is their impression of Vietnam, i.e., what is Vietnam to them? And, what is Vietnam known for globally? These are all questions that Vietnamese brands looking to go abroad will have to find the answers to in order to enter new markets in the most efficient way possible.

A Vietnamese client recently told us that they wanted to build a “Vietnamese iPhone” in part due to the success of Apple’s iPhone in Vietnam and the rest of the world. Instead, we suggested that they differentiate their product by creating a secure smartphone (similar to the Blackphone or Boeing Black). Given last year’s revelations by Edward Snowden and Glenn Greenwald, security conscious companies might prefer another option for secure handset communications beyond American and Chinese manufacturers, especially if the alternative price point is attractive. Or a suitable Vietnamese startup could always take a page from Xiaomi’s book (2010 wasn’t so long ago).

The growing risk for Vietnamese companies who have the technical skills to produce something for other markets is that they might create something that only Vietnamese consumers will like. For example, when Yamaha Vietnam unveiled its website redesign in a “flat design” style, the feedback they got from Vietnamese visitors was that the website had no information and was hard to navigate. Vietnamese taste and design considerations can be very unique, even in Southeast Asia. Another way to think about about going to another market is that it’s not realistic for an American company to come to Vietnam, do things the “American” way and expect to be successful. Similarly, how do you think a Vietnamese company trying to do things the “Vietnamese” way in the US (or any other country) will fare?

Choosing the Long Term

During a conversation last week with some Vietnamese/New York fashion industry insiders in Hanoi, we discussed how to create and position a future clothing brand here in Vietnam. What is Vietnam’s competitive advantage in manufacturing? Vietnam’s current advantage is its low cost of labor (in addition to other financial incentives) which has prompted giants like Samsung and Intel to setup multi-billion dollar manufacturing facilities here.

However, inexpensive labor won’t last forever nor will Vietnam’s “Golden Population Structure” remain intact. Just as investment has flowed into Vietnam from China, so too will investment flow into a location with less expensive labor costs—perhaps to another neighbor as well. So looking ahead, what product or service might Vietnam have in the future that will give it an advantage in the global marketplace?

Today, Vietnam has plenty of raw materials but they aren’t finished goods which Vietnamese manufacturers can command a premium for. Not to mention that we live in a world of limited resources, so what can Vietnam offer the world in the future? One way to answer this question is to think about the challenges that Vietnam will face in the future (and that other countries will have as well). If Vietnamese companies continue to or start working on solutions for those problems then they can be ahead of the curve. After all, there is innovation here–many Vietnamese are “professional improvisers” in their daily lives and they are quick and resilient learners, as history has shown.

In the future, Vietnam won’t be the only country that has a rising national power consumption (and therefore rising demand for coal if alternative sources don’t emerge), it won’t be the only country with more cars on the road (and therefore more air pollution), and when sea levels rise it won’t just affect a single city like Can Tho in the Mekong Delta—it’ll affect hundreds of cities and displace millions of people. The point here is that the challenges of the future won’t be exclusively Vietnamese, but Vietnamese-origin—and not uniquely Vietnamese—solutions can be used to solve the challenges of the future (if those problems are solved here first or at the very least knowledge can be shared abroad). However, it takes a long term mindset to truly tackle these transnational issues of our time in addition to investments in education, human capital, and financial resources for research and development.

Peter Drucker, the 20th century’s greatest management thinker advised to always choose the long term, because it always comes true. Focus on your long-term strategy, but take advantage of the short-term opportunities in the meantime–that’s how a future brand in Vietnam will be forged, and how Vietnam–the brand–can begin to take shape as well.

Perhaps an alum might be on here one day…

The Olympia Schools

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We all remember the best and worst teachers we had growing up but what makes a school great? Is it the students, the teachers, or the environment? Is it a top-down approach, organic growth, or innovative teaching methods? Or is it simply a matter of caring and going beyond preparing students for the next stage of life?

With some exceptions, primary and secondary education in Asia doesn’t have a stellar reputation to begin with: many schools are pressure cookers that are ripe with rampant student cheating, some who freely admit to doing so. In some instances parents pay teachers to “look after” their children and teachers pay the school’s principal to get a job in the first place. Traditionally, the goal of education in large parts of Asia is to absorb and repeat as much as factual knowledge as possible (rote learning) all without questioning the wisdom and authority of teachers.

The Olympia Schools aims to change the educational mindset whereby students focus on how to learn and access information so that they are able to develop the critical thinking skills which will be essential when facing new challenges in the 21st century. The school places emphasis on the process of learning, and seeks to intersect theory and practice for each of its units throughout the school year.

Simply put, the Olympia Schools are a new breed of education in Vietnam. The school started out as Dream House 11 years ago and was the creation of four Vietnamese women who weren’t satisfied with the local kindergarten offerings in the neighborhood. So naturally, they did what anyone would do: they opened their own school. Word spread about the new school and it became a popular school with parents who wanted better alternatives for their children. It was so popular that when the co-founders’ children finished kindergarten, they started an elementary school. Finally, about four years ago the school became the Olympia Schools. Today, some students are bused to the school from up to an hour away.

Christopher McDonald, a native of Michigan, is the Head of Schools. He has played an integral part in shaping the school’s atmosphere and amenities to form the current school environment. We stopped by on a recent Friday morning to speak with Mr. McDonald about what makes the Olympia Schools unique in Vietnam and how the school is preparing its students for life (the school’s motto).

A Meteoric Rise in a Decade

The Olympia Schools is located in Trung Van, Tu Liem, Hanoi. The facilities at the school include a tennis court, a football (soccer) field, an art studio, a games area, a weight room, and even an underground swimming pool. The vast majority of the students are Vietnamese and instruction is given in both English and Vietnamese. Among one of the many notable firsts, the school was the first in Vietnam to offer the PSAT last year and currently offers AP courses. During the summer, the school is host to a camp called Utopia where participants create their own society.

The campus has a distinct international feel to it and has a wide range of easing colors throughout the halls. When we arrived, the first graders were practicing for the Winter Festival, to be held later this month. There is a good feel of school spirit, from the formal uniforms (which are worn every day except on Casual Fridays) to the country flags hanging in the entrance hall to the nice green spaces surrounding most of the school (it’s sometimes hard to find quality green space in a bustling city like Hanoi). Even Martial Arts and cooking classes are offered and the students’ photos are displayed on digital signage on their birthdays, a nice way to make the students feel even more special.

Below is the school’s mission statement:

“The Olympia Schools embrace Vietnamese values while providing an integrated experience in the study of English and global issues by developing fundamental skills, fostering creativity and problem solving, and promoting ethics that allow students to adapt, to improvise, and to overcome challenges–we prepare students for life.”

Grades 1 through 12 are offered at the campus and there are plans to bring the kindergarten classes on site in the future. The school also has partnerships with educational organizations in the United States as well as Canada—something that gives it an advantage in terms of prestige but also exposes its partner schools to resources on the other side of the world–a winning formula for all.

The school also focuses on soft skills beyond the classroom to develop all aspects of a student’s character and attitude. The faculty is a mix of local and foreign teachers and we saw several classrooms that had projectors as you would find in the US. The school currently uses a four term school year where students focus on different objectives each term. For example, Term 1 revolves around project based learning (PBL); Term 2 ends in traditional formal testing; Term 3 features Creative Learning Expression which requires the student to demonstrate what s/he has learned via any medium; and Term 4 is a portfolio review/analysis which culminates in a reflective end to the school year. For more information about the terms, please see here.

Additionally, there is a summer skills component which may include an internship, e-project, or reading assignment. As a testament to how impactful the school’s efforts are, Vietnam’s Ministry of Education and Training (MOET) has followed The Olympia School’s success in regards to using integrated studies in its curriculum. The result has been Olympia Schools graduates going on to be successful in their university careers, in large part due to the emphasis on scholarship and continuing studies.

As profiled in the Forbes piece:

“It was the first Vietnamese school with a college counselor on site like an international school—normally college counseling is offered via a separate paid center—and its graduates often attend university overseas.”

The school’s alumni in recent years have gone on to study in the US, Singapore, Australia, China, and other countries. From organizing a kindergarten class to building an entire campus and sending students off to universities within a decade; an amazing feat indeed.

A Future Model

On December 20 and 21, the Winter Festival will be held at the Olympia Schools. The Winter Festival will feature performances, a fair, and games and will include participants from other schools in Hanoi as well. This year’s theme is fairy tales of Vietnam and other countries with the purpose being to raise money for the “Seasons of Care” fund which was founded four years ago. The fund aims to build a new water supply and filtration system for Na Loc Primary School, Ban Mu, Tu Xuyen, Van Quan County in Lang Son Province, close to China. Art performances and games will be held from 2:00 PM to 9:00 PM on both days as the fair provides opportunities for the community to come together to make an impact in Vietnam all while enjoying each other’s company.

So beyond this month, what’s in store for the Olympia Schools? Well, it hopes to be the new model for schooling in Vietnam by combining learning with experiences in and out of the classroom, i.e., learning by doing and by sharing with others.

In this day and age students cannot afford to be mere bystanders or observers of history because the classroom of today will be the workplace of tomorrow in terms of diversity, culture, and foundations of excellence. The successful students will be the ones who communicate effectively, who engage with different and relatively unknown cultures from their own, who think critically, who ask thoughtful questions, who reflect upon their experiences, and who can work together with anyone to accomplish synergy.

Schools like The Olympia Schools realize the new world that we all live in–this Information Age–and seek to prepare students for a rapidly changing and volatile world by enabling them to craft and assemble the tools to understand and overcome complex global challenges that they will encounter in their lives. This task is critical because one day in the near future students will have to answer a vital question: what does this change mean for me?

Thanks to Christopher McDonald, Head of Schools for sharing his time with us and answering our questions. 

 

Long Van Group

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Long Van Group, founded in 1992, is comprised of four companies: Long Van NTV, Loval, ALV, and Hondalex. Through its portfolio companies based in Vietnam and the US, the family-owned group is perhaps best known for its aluminum product manufacturing—which is how it got its start. The other companies include a trading company in Ho Chi Minh City for the domestic market, a trading company in the US for the international market, and a joint-venture with Hondalex. Recently, we sat down with Thy Van Nguyen (Vanessa), whose official title is Operational Director but she is heavily involved with the strategic vision of the group as well as integral in implementing organizational change across the companies.

Ms. Nguyen was born in Ho Chi Minh City and moved to the US when she was 16. After being based in Seattle, Washington and attending university in the US, Ms. Nguyen moved back to Ho Chi Minh City about 18 months ago in order to focus on the family business. She currently spends about 80% of her time in Vietnam between Ho Chi Minh City and Binh Duong Province, where the manufacturing  activities of Long Van Group takes place. Currently, one of Ms. Nguyen’s major initiatives is the transformation of culture in her organization, something that she has successfully done in the domestic trading arm of the group.

Changing a Culture From Within

Ms. Nguyen is a big believer in getting the people doing a task or activity to understand the purpose of it. The people on the front lines are already the best people to do to the job so they will also be in the best position to improve the process. It’s only a matter of getting them used to speaking up and contributing regularly for the reward is improved efficiency and recognition by management and their peers.

That goal is sometimes easier said than done as older managers in a company have a more traditional mindset of top-down management style. Therefore, it’s necessary to first change the managers—either their attitudes or outright replace them (however, Ms. Nguyen didn’t have to fire anybody). If the managers had not bought into her vision at the onset then the project couldn’t have worked. Having the managers on board enabled the culture at the trading company to completely change within eight months but it took six months before she began to see the fruits of her labor. It also helped that Ms. Nguyen speaks Vietnamese in addition to English, and is the daughter of the company’s owner so she did have the power to initiate and implement change. However, despite these advantages it was still tricky for her to balance the right relationship with the workers due to some strong local cultural elements.

Part of the culture in Vietnam revolves around a fear of power which has roots in the royal history of Vietnam and continues in the form of wealth and political power today. Therefore, people in positions of power might need to be more informal, more cheery, and re-emphasize what resources are available to workers who need help, guidance, or any kind of assistance. People aren’t going to ask for help on their own or tell you what problems they have. Vietnamese culture is generally not expressive; a Vietnamese son or daughter can do 1,000 things right and not receive a single compliment. However, if s/he does one thing wrong then they will hear about it to no end. Thus, a lack of a negative response is a positive step. It’s important to praise workers because no one really says compliments from an authority position so it really impacts their subordinates.

It’s interesting to note that Ms. Nguyen was able to effectively change the culture because of gaps in old culture when other senior leaders were focusing on other business lines. Her changes came at the right time because the old system was not effective for expanding beyond the original 20-30 employees since it was largely based on gut feelings.

It may also be that everybody can see the problem at hand but no one wants to do much about it–Ms. Nguyen sought to change that. The interesting thing is that the workers want to hear different perspectives but not necessarily change the old ways of doing things. So even though everyone can point out the problem, no one can suggest a solution because it may be too risky to suggest a potential solution.

This challenge of self-confidence and expression has its origins in the educations system in Vietnam. The educational culture in Vietnam revolves around being told what to do; the teacher tells you the answer and that’s the answer–end of discussion. One way to overcome this element is by tapping into the fact that Vietnamese people love to look good; they want the story to be about them. They love the credit so give them that credit when appropriate. For example, present them with a situation and ask them to help. Then you can follow up with: “I listened to you and it worked.” In these moments you will see how proud the workers are and have just established a precedent. Perhaps the most effective way to connect with workers is to tell them stories, and then get them to be part of the stories. It can be as simple as presenting a scenario to workers and asking them, “if you had to make that decision then what would you do?” Indeed, not all changes are smooth and changing a culture is perhaps one of the toughest tasks to take on but by empowering workers it increases an organization’s operational efficiency overall.

Make no mistake: an organizational transformation is not without friction and conflict—especially when dealing with the “old guard.” Some people quit in the process, in part due to wanting to change the organization in a different way than Ms. Nguyen so they left. Changing the culture required that Ms. Nguyen trust that a real foundation was in place for the company to expand upon itself. To that end, she had to let go of some of the intensive focus she had on certain processes. These days Ms. Nguyen’s 62 workers at the trading company embrace and drive towards her and their vision of change.

Training and Developing Vietnamese Workers

Improvement is a continuous process at Long Van Group. Ms. Nguyen gives training courses once or twice a week for each division in her company in an effort to better prepare them for current and future work-related tasks. She strives to get different workers to select a unit each week based on a set list and give a presentation to the other workers. In her “guide-on-the-side” role, she asks questions and draws opinions from the workers and gives feedback at the end of each session.

During her training sessions, she will also share a story about a work experience, or conduct a workshop, or present a scenario. Then the workers will split into groups and talk about what each worker would have done in the scenario or what to do in the situation in the future.

Example: Your colleague sends an email to an organizational partner who you must coordinate with on a project. In the email, your colleague states that your company is not responsible for a specific portion of scope but that there are related issues that need to be addressed for the client’s benefit. The organizational partner’s vice director simply responds: “If the scope is not your responsibility, then your opinion does not matter.”

Ms. Nguyen will then question the workers on whether or not the logic of the vice director is wrong. Thus, the workers are solving problems with real experiences (the above example is actually used in training by Ms. Nguyen and was experienced by your author in Ho Chi Minh City last year) and are thinking about how to view situations more deeply.

This analysis is important because when responding to allegations some Vietnamese tend to lash out when things start to take a dive and they can take things personally even if they aren’t meant to be from your side. So it’s vital to be mindful of not only what you say (although that is important as well), but about how they feel (and taking care to let everyone save face).

Within Vietnam, southerners rely more on gut feelings whereas northerners are more logical. The southerners present themselves at face value; they want to prove to you that they care about you when they meet you. However, northerners want to compare status levels and act accordingly. Thus, foreigners might have a better time in Hanoi compared to “common people.” Northerners tend to think more before they talk so their use of words is better and more structured which presents them as being clever. Southerners speak more from the heart since they are generally more open and expressive. It’s important to be aware of your counterpart’s feelings because in Vietnam and in life, one can never do something big or grand without building a coalition.

Human Capital in the US and in Vietnam

In the US, people and workers are proactive while in Vietnam they are largely reactive. However, foreigners can learn a lot from Vietnamese people. But first, they must stop assuming and see things in limited possibilities. Ridiculous and downright crazy (from a western perspective) things could and will be possible because it may be the only option for moving forward in Vietnam.

The social structure is more set in the US due to the developed economy and Puritan work ethic. So in the US there is freedom to choose within set choices, i.e., the illusion of freedom because everything is already structured. Life is very predictable in the US so many people want to be proactive, they want to be ahead of the curve. Thus, Americans tend to assume a lot when planning.

On the other hand, Vietnamese are “proactive by being reactive:” they expect the plans to go awry so they bypass the planning stage and when things devolve they are better equipped to salvage the situation. Thus, Vietnamese prepare for certain situations but not for all situations. In that sense, they are able to make unreasonable (or even crazy) positions seem logical because they have developed these skills. They are very adept at framing an arena and taking up defensive and offensive positions and excel when things don’t go right, in part due to the messy social structure. It may be surprising to some that Vietnamese can be very practical because oftentimes there are no other options.

So, Vietnamese are really good at changing situation into their favor but they are also good at making crazy logic sound normal. Some people may believe that if they spot an issue and bring it up, then they will need take responsibility for it. People are afraid of responsibility because of the challenge of getting the task accomplished correctly. Vietnamese people like to look good so they don’t like to put their name on a project or idea in case it fails. But if it turns out good and then they take full credit. For Ms. Nguyen, a large part of the effort to change the organization is by marketing herself through self-branding because the perceptions of the workers will make or break any initiative.

Opportunities for Expats

To Ms. Nguyen, Vietnam is the perfect country to grow something big—but it’s a double-edged sword. Everything is based on relationships, which can be good or bad depending on the perspective. To be successful in Vietnam, one needs to be flexible and open-minded since many problems in Vietnam need to be solved in unorthodox manners. Structure beyond social doesn’t really exist, so if one relies on structure to move forward then s/he is in for a rude awakening (unless those connections are present). Above all, give Vietnam a chance but know where your limits are and what is the extent of your comfort zone for (operational and legal risks).

Expats shouldn’t assume anything in Vietnam and they will have to take on more responsibility to ensure that things stay on track and don’t fall apart. Things that are taken for granted in the west simply don’t exist in Vietnam. For example, the search results of Google, and Google VN are very different. Some people in Vietnam trust the US version more than the Vietnamese version. Also, Vietnamese websites generally don’t have a “how-to” section. For western websites, the product or service offered is described in depth and it is very clearly shown what it is and how it is done.

When explaining something in Vietnam, it has to be simple, clear, and consistently explained multiple times. Then, inverse questions need to be asked in order to triangulate what the actual response is for determining if the receiver understands or not. Communicating processes, requirements, or issues to locals can be timely and frustrating, even when explaining in the Vietnamese language. One way to get Vietnamese people to understand a process or information is through infographics—and in particular, youngsters will understand it better. They like the convenience aspect and the way the information is presented so they are more likely to understand it. If a member of the older generation doesn’t understand something, then s/he will just ask someone nearby or a close friend who will be put on the spot and could just blurt out something that sounds good but isn’t necessarily accurate. Thus, a crazy feedback loop begins where most of the information is wrong as the process continues. Besides, many Vietnamese don’t believe what they read. The older generations do, but the younger (those born in the 1990s and later) ones, no. Cute infographics can help explain things succinctly—and the cuter, the better; think anime characters.

In more general terms, most work fields don’t give newcomers to the country a chance. Connections are part of status which bypasses merit in many cases. It doesn’t matter if you are the best in your field, if you don’t have a good connection then no one will work with you. When arriving in Vietnam, get the connection first. Leverage being sent by a foreign company by learning about the country and forming bonds. Another option is to wait until you have the money to buy status here. In that sense, you don’t have to be the best person in your field—you can be average but still get a piece of the action through connections.

Drinking: Bad or Good for Business?

Still, business can be too much relationship-based; that is to say too reliant on gut feelings and feelings in general. Logic is largely used to make decisions in the US but in Vietnam they need to “feel it” in order to do something. These positive feelings are usually the result of some bonding over alcohol, either bia hoi, ruou, or some imported spirits.

Ms. Nguyen points out that her male employees never get drunk enough to be inappropriate at company functions. And for those who don’t drink any alcohol, while they can sponsor a “drinking nominee,” they could be at a disadvantage with their local counterparts by them not “truly” knowing the person when s/he is drunk. Thus, the best way to establish trust with Vietnamese counterparts is to drink alcohol with them—so if you get drunk easily then you must learn how to control yourself. Vietnamese truly believe that you will be yourself when you are drunk so in a way it’s like peering into your soul.

Everything you say or do shapes their perception about you, especially when drinking. The actual message, while important, is secondary since they are judging you via a gut feeling. It can be quite dangerous since Vietnamese may perceive an offense where there was none. When doing business, Vietnamese generally won’t trust you until you drink alcohol with them and they are able to see the “true you.”

How you are as a person when drunk may be the biggest indicator of doing a deal with Vietnamese. Their perception of you while imbibing will be the baseline for judging you. Once they see you drunk, then that’s how they will perceive you and they will hold onto this image of you until the next time you drink together. If you are a bad drunk, then beware.

The Next Step

Next up for Ms. Nguyen is changing the culture at the factory since it is a special case. The entire production was in the hands of two directors but the current result didn’t turn out so well so the focus is on getting workers to take more initiative and overcome fears of failure. Indeed, Long Van Group is at the forefront of providing high-quality products and driving organizational change in order to provide a better customer experience. Vietnam is becoming an even more prominent destination for outsourcing and manufacturing and as more projects are implemented here then the technical and management skills requirements will increase as well.

Today, China produces for much of the world but in recent years some factories have migrated to Vietnam, in part due to the fact that wages in China are higher than in Vietnam. However, prices of finished goods in Vietnam can be higher than in China because of other operational costs. The disadvantage that Vietnam has is that the workforce is less skilled than China’s and the economies of scale don’t exist on par with China. Quality control remains an issue in Vietnam as well.

As more foreign companies come to the Vietnamese market, the standards for local workers’ qualifications and skills will rise. A growing trend is for Vietnamese workers to take courses at private institutes to aid in their professional development, e.g., how to be a better manager or CEO. These courses are truly development on an individual level because people are there because they want to be better. For the students, Ms. Nguyen suggests that they seek to understand on a conceptual level and learn to connect everything.

“Learning how to connect things is the tool you need to work in the real world,” Ms. Nguyen advises.

Below, Ms. Nguyen shares some of her favorite quotes:

“Do or do not, there is no try.” –Master Yoda

“If you are a good leader, when your work is done, your aim fulfilled, your people will say, ‘We did this ourselves.’” –Abraham Lincoln

“You can listen like a blank wall or like a splendid auditorium where every sound comes back fuller and richer.” – Alice Duer Mill

 

Special thanks to Vanessa Nguyen of Long Van Group who shared her time with us and greatly contributed to this week’s post.

First Impressions of Vietnam

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Trying to explain Hanoi, and Vietnam in general to someone who has never been here can be quite challenging. For many expats in Southeast Asia, the region and its cultures can be difficult to understand and navigate let alone effectively explain to family and friends at home. And research, while helpful to understand settings, is not a substitute for direct experience.

This week we have a guest contributor who is with us here in Hanoi. Zdravko Tumbovski is an international businessman who has done business in Turkey, Bulgaria, his native Macedonia, and other countries. He arrived in Hanoi for the first time on Tuesday, November 18 in order to take a firsthand look at the Vietnamese market and to gauge its potential for his interest in trading with Vietnam and in Southeast Asia.

His professional experience includes an internship at an insurance company in Macedonia; a Business Analyst position at a family owned company, Info Group Ltd, which made investments in the Macedonian Stock Exchange and the Macedonian Real Estate market. Currently, Mr. Tumbovski is the founder and director of Z&Z Capital Ltd based in Bulgaria, which specializes in transport and logistics services in the European Union (EU).

Additionally, in conjunction with partners in Turkey, he is involved in import-export transactions, mainly in cooking oil, but they are also expanding to other commodities for the Turkish bazaar. His primary role is to find a suitable supplier and to negotiate the payment methods and transportation of the goods.

Zdravko shares his first impressions of Vietnam below:

After constantly moving around between the US, Europe, and the Middle East in the last seven years, I spent a considerable amount of time in Los Angeles this year. About a month ago, I reconnected with director of GKTA Group, whom I have known for several years.

GKTA Group introduced me to some of the many challenges, opportunities, and conditions faced in Vietnam. I felt attracted to learning more about this dynamic market and it didn’t take long for me to decide to come here and check out Vietnam for myself.

Even though I am still in the first week of my arrival, I must admit that I am having a very smooth transition to this country so far. I was already familiar with Asian cultures due to my friendship with Asians in my network that I have known for a long period of time, and also because GKTA Group put a lot of effort to set up at least one meeting per day with a local person where I can get his/her answers to some of my questions about his/her country’s future, his/her point of view toward foreigners, and the changes that s/he has seen the past five years in Hanoi, especially.

Hanoians and Hanoi

Vietnamese people in the capital of Hanoi are generally polite and quiet. It usually requires some time until they start to feel comfortable sharing their views, and begin to realize the goal of my questions because I see that they are not very used to foreigners who are interested in their culture, and who try to understand their values.

Vietnamese people seem to be the loudest on their motorbikes. They are honking at every cross street, and from my findings they rarely show anger with words, but only with menacing stares at the perceived wrong-doer. The amount of motorbikes and the traffic frequency for me was something unseen before; in short, outrageous.

Hanoi is a city with a long history, and it is shown on every corner. Hanoi has the street-selling spirit and it is still done traditionally and mostly inexpensively for locals. However, there is luxury consumption visibility in the younger generations and newly rich populations. For me, this is probably more visible because I was raised in a former communist country, Macedonia (Former Yugoslavia).

The Wi-Fi coverage and the use of internet are quite impressive compared to the expectation of technology in a developing country. The “drinking-coffee” habit is at large range, and the number of cafes is seemingly endless but a favorite of Vietnamese people. One new thing for me is using condensed milk (“sua dac”) in almost every cup of coffee—and I find it tasty—even if it is uncommon for me as a European.

Luckily, I am fan of Asian cuisine, and have been eating it frequently. Compared to other cuisines and the tastes of some westerners, you may remain hungry here if you are very picky with the food. The traditional street foods, or the local dishes in the very basic and not-so-modern restaurants can be tasty for people who are food enthusiasts and open to new flavors; on the other hand, it can be off-putting (even though I aim to be cautious with my language here), because I certainly know many people who would not be able to eat the local food here, and who would not be willing to be seated and served in the Hanoian or Vietnamese way of small tables and children chairs. So far, I enjoy it.

Work Ethic and Exposure

My personal view is that most of people here work hard and long hours. The basic example for that is the staff at the hotel where I stay. They are here every single day of the week, for over twelve hours per day. They are very friendly and very helpful even if there is occasional miscommunication.

When talking to waiters or other people in cafes and on the streets, I have come to realize that many of them have not had a chance to travel a lot. Actually, many have never been outside of Vietnam. The reason for that is first, money and second, time since, as mentioned before, they have to work almost every day, year-round.

There is a sense of trust that permeates through the people here. I had a very unique experience that occurred to me at the border upon arriving at the airport: I had arranged for visa upon arrival and at the bureau the visa was issued and stamped more quickly than what I had estimated, but I had no cash on me to pay. The customs officer asked me if I had any currency equal to the amount of $95 (the price of the visa), but I had none. The ATM was outside the immediate area, after the passport control, so I thought that I couldn’t consider the option to withdraw some money. As a matter of fact, the officer walked me through the immigration border without any checking and without any concern, just to withdraw the necessary money for the visa, and then led me back to her desk in order to pay. That was surprising. Actually, the border control experience in general was more liberal than in many other countries.

If I am allowed a chance or could offer some suggestions to Vietnamese who want to be successful with westerners, it would be:

  • Learn more English, the number of tourists is increasing  and you need it
  • Strive to be more comfortable with foreigners
  • Be more creative for international businesses; this land is rich
  • Act more responsible to the duties and respond to requirements efficiently and faster

Business and Understanding Vietnam Now and in The Future

I haven’t experienced any business deals in Vietnam yet, but I am most worried about the changing industry regulations, the unpredictable law amendments, unfair competition, and the guarantee of quality standards.

My advice to the expats that want to do business in Vietnam is to spend as much time as possible here, but with local people. It is essential to understand the habits of the Vietnamese before starting any sort of business, in order to prevent an organizational mismatch and communication misunderstandings. It is complex and different here indeed.

I can already see that the necessary attributes required to succeed in Vietnam are patience and simple guidelines.

What I would like to learn about Vietnam or the Vietnamese is: until what extent have the ancestors shaped today’s population, and how much is the young generation willing to keep and practice the old traditions? I hope that finding this balance will help me to predict and understand their place in the world for the next decade.

This next decade will be crucial for Vietnam as the country transitions to increased trade with more global partners, the middle class continues to grow, and more foreign investment pours into the economy. Vietnam has many natural resources, a lot of talented people, and a willingness to exceed economic indicators but it will not be without some development friction, conflict between traditional and modern Vietnam, and addressing some major investor concerns. However, the long-term benefits will be far greater than what the shortcut rewards of today will provide. After all, as Jim Rohn says, “You cannot change your destination overnight, but you can change your direction overnight.”

Thanks to Zdravko Tumbovski who contributed to this week’s post.

Being an Expat

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We’re a bit late with the post this week as we spent last week in Saigon. What a change it’s been since last year: massive construction on Nguyen Hue, new buildings, and new faces as some familiar ones have moved on. Saigon is definitely a city in flux–the growing pains are evident trying to navigate around District 1 or District 2–and it seems like it will be that way for awhile as the metro takes shape.

Anecdotally, if an expat in Vietnam makes it to two years in Vietnam then s/he either stays for the long haul or heads to a different place. Thus, there is a staggered mass exodus every two years—which means that the expat community that is present today was largely not around five or more years ago.

In many ways, being an expat in Vietnam is about survival: who can outlast, adapt, and add value in ways that locals and foreign companies will appreciate and are willing to pay for. At the same time, the decision to invest more into Vietnam can be difficult (especially for expat entrepreneurs). Another way to look at it is how integrated should one be in Vietnamese society?

While there are benefits (business rights, visa, and so on) that come with a local spouse anywhere, whatever costs savings by living in a developing nation are wiped out if one is sending his/her child to a quality private school. So there are other considerations for entrepreneurs attempting to integrate into Vietnam beyond learning Vietnamese and moving into a fringe/edge business—especially for older expats. Indeed, it can be hard to change over from a lifestyle business to a scalable business model.

Finding the right balance in Vietnam can be challenging for many people. For example, there is the uninhibited nightlife in Saigon, and there are the midnight curfews in Hanoi. Business meetings can last from two to three hours and even longer if the booze is flowing and the bonds are strengthening. Where does the line for business and personal relationships end? Sometimes, it can be hard to distinguish whether it’s a friend or a business associate who is picking up the check–and sometimes it’s both.

There is a small town feel here—less so than Vientiane or Phnom Penh—but it’s not uncommon to run into the same circle of people in various establishments or at least to meet people who know the same ones that you do. For expats who want to be successful here and in Southeast Asia, Vietnam should be a long term plan. There is no doubt that Saigon, Da Nang (Hoi An included) and Hanoi attract different kinds of expats. But too often, a segment of expats seem to fall into a cycle of complacency, vices, and distractions. Out of those three cities, it’s perhaps easiest to lose a sense of self in the sprawling metropolis of Saigon; the loneliness of being an expat can contribute to a less-than-healthy lifestyle as well.

For certain, mistakes will be made both in business and social settings in a new environment and setting—no one is perfect. The key is to learn from mistakes and to not repeat them again. Even when some people have reached their wits end after being here for years, other opportunities have popped up which have compelled them to stay—but it’s only because they’ve tried and failed previously that they were noticed–and had the reputation to be suitable for a new project. But what drives people to “leave Vietnam for a third time?” Or to stay in Vietnam for years and never learn the language beyond a basic level?

The real opportunity here is to create and shape markets. Vietnam is still in “tree growing” mode. Sure, one day there will be a harvest—but it takes time, money, and other resources to educate consumers, stakeholders, and to build/create a marketplace. To that end, Vietnam needs more entrepreneurial talent, more STEM (Science, Technology, Engineering, Mathematics) talent that knows what it takes to bring a product to the global market, and more people who are interested in Vietnam from a cultural point of view instead of a bia hoi/bia om focus. But, how to attract such talent?

For starters, lower the risk of coming to Vietnam and doing business here (corporate governance), lower the barriers to raising capital here for startups (beyond incorporating in Singapore and keeping a local team here), and promote finding ways to leverage local talent to create products and services that can be differentiated.

Another major pitfall for expats is to adopt local ways of thinking and doing things. It’s very easy to complain and to succumb to some of the craziness that permeates interactions in the workplace and beyond. Staying rooted, being patient, and remaining steadfast during negotiations are valuable qualities to have ample supplies of. However, also knowing when to quit due to wasting time, the expectation of charity, or unprofessional expat or local counterparts can save many headaches for everyone involved. It’s definitely easier said than done and is a skill that takes time to develop.

Above all, expats should find that their tolerance for healthy and smart risks will have increased after living/working in Asia. Whether it’s riding a motorbike to/from work in the middle of crazy traffic patterns, or dating someone from another culture, or seizing a new opportunity, each experience will help shape confidence and character in future situations.

Living and working in a new country is a risk itself—why stop there? Vietnam is not perfect—no country is. But finding the good in situations and people is more of the result of attitude instead of focusing on all the current problems. Part of the trouble is that the more things change, the more they stay the same—especially here, just with fewer expats that you know. In that sense, finding what’s right about Vietnam can be harder than usual. If you’re in a city that you don’t like, then move somewhere else. If you’ve tried a few cities and still aren’t happy then move to another country. This place isn’t for everyone and staying true to oneself and being ethical/moral seems to be a challenge for many, including westerners. Nothing worthwhile is easy.

For those that stay in this part of the world, have a strong sense of self, and see opportunities, “if a whole country is blind and you have one eye, then you can be king.”

 

How to Find a Job in Asia (Vietnam)

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It’s great that you’re interested in working in Vietnam, but it’s time to get more specific because Vietnam has different regions, cities, and lifestyles to choose from. Finding a place where you can grow professionally and personally can be a bit tricky but it’s definitely possible–especially once you narrow down your living and working options. Expats tend to end up here in a variety of ways: some people were sent by their foreign companies, others acted as consultants to local or foreign entities, another portion decided to take an extended vacation here once they arrived, and for another segment there are clear cultural ties to the country.

If you don’t fall into any of these groups then Vietnam has piqued your interest for reasons other than having already experienced it, which can be riskier from a company’s perspective since Vietnam is not everyone’s cup of tea and some people choose to move on after briefly experiencing life here. Yes, there is something special about Vietnam that can draw people in but there are also many things which can drive a person out of the country as well. Living and working in Vietnam can be very challenging at times so if you are able to withstand it or thrive here then congratulations are in order and you should be proud of yourself because it’s not something that everyone can do.

Searching in Vietnam

Therefore, it’s best to get out here on the ground and network to show that you are committed to working in Vietnam until you find something suitable. First, you should decide which city you would like to work in based on your research about the Vietnam market; you should be able to clearly explain why you are interested in working and living in Vietnam, especially if you have never been here before or you don’t have any cultural ties to Vietnam.

A brief overview of some cities in Vietnam:

Ho Chi Minh City (Saigon, in the south): Fast-paced, more cosmopolitan, more international, more western-oriented. Great for entrepreneurs, FMCG, startups, business people, artists, marketing agencies, etc.

Hanoi (the nation’s capital, in the north): More traditional, slower pace, tighter expat community, “early to bed, early to rise mentality.” Great for NGOs, diplomatic corps, building relationships in the local government, niche opportunities, etc.

Da Nang (in the central region): Surrounded by great beaches, more laid back, cleaner, an up-and-coming city with quick growth, especially in the tech sector, and third biggest economic center, etc. Great for those who are seeking “something different” in Vietnam beyond the standard two choices above.

Of course, there are other cities to choose from in Vietnam, but the above are the usual ones that expats end up living in.

So after you have picked a city, you will need to pick a date that you will move to that city (you can get a three month visa—single or multiple entry—from your local embassy/consulate/mission or through www.vietnamvisa.com for a visa on arrival). You’ll need to start networking at least one month out from when you will arrive in the city. Make a list of the companies in your industry that are operating in your city of choice as well as positions that are available throughout the country (you have to go where the opportunities are, after all).

Resources:

  1. LinkedIn (www.linkedin.com)
  2. Vietnam Works (www.vietnamworks.com)
  3. Indeed.com (www.indeed.com.vn)
  4. Monster (www.monster.com.vn)
  5. ITViec (www.itviec.com)

When you apply to positions found on online job boards, you can mention the date which you will arrive in your cover letter and any experience that you have in Vietnam or Asia. In terms of networking, start by connecting with people in your field: ask them to meet for a coffee once you arrive in town, or for successful advice, or what’s your industry like in Vietnam compared to other countries (maybe you both have lived in the same city elsewhere). You can also try reaching out to recruiting firms to see if they are searching for candidates with your profile—although this route is better for executives. It would also be wise to check for upcoming local tradeshows or conferences that you can participate in and adjust your flight accordingly. It would be a shame to miss an important yearly event by a day or two when you could have started your job search off strong.

Before you leave for your current destination, you should have an updated CV (the format is more detailed in Asia than in the west), an elevator pitch, and even business cards with your name, email, and mobile number (if you can get a friend to buy you a SIM card in Vietnam before arriving). If you wait until you arrive in Vietnam then try to get a 10-digit number (as opposed to a 11-digit number) with as many sixes and eights (lucky numbers) as possible. Viettel is a good choice as a network provider due to its extensive coverage throughout Vietnam in both urban and rural areas.

Landing in Vietnam

Once you arrive in town call up people to follow through on the meetings you set up before arriving in country. Go to your Chamber of Commerce meetings and events, and attend as many relevant networking events and activities as possible.

Resources:

  1. City Net Events (www.citynetevents.com/)
  2. Chamber of Commerce (e.g., www.eurochamvn.org/)
  3. Meetup Groups (e.g., www.meetup.com/hanoiinenglish/)
  4. CouchSurfing Events (e.g., www.couchsurfing.org/n/events/all-about-cs-hanoi-hanoi–2)
  5. Sports Clubs (e.g., www.Facebook.com/hanoi.ultimate.club)

Every expat has experienced his/her first day in a new country so most are willing to help out or advise newcomers on potential pitfalls and ways to limit their liabilities here. However, not everyone will have or make time to meet you for coffee so don’t take it personally if someone doesn’t get back to you—be professional and keep good relations as much as possible since the world is a small place.

Volunteering to help organize events or to work events is also another way to make connections with people who are more familiar with the business community than you are. It also allows you to make a case for why you would be an asset to an organization. Keep in mind that to do that effectively you must research the organization that you are interested in working at. Differentiation is the name of the game here in order for your qualifications and interests to fit in with a company’s mission and culture.

Potential Barriers

  1. Cost
  2. Commitment
  3. Lack of support system

Buying a one-way ticket or carving out up to three months of your life to search for a job might seem like quite the undertaking. It is, for sure, but if things don’t work out then you can always buy a return trip ticket after a three month vacation. The monthly average rent for a room here is between $165 and $300 plus around $50 in utilities (depending on room/person distribution). Depending on where you are coming from, a flight can be several hundred dollars for a one-way ticket to a couple thousand dollars or more for roundtrip tickets. Yes, it is expensive but the upside is that you will have an experience that not many people get to have: living in a new country, learning a different way of doing things, making friends from other parts of the world, making a direct impact on those around you, and learning new things about yourself. In the long run, three months is a short time to take a healthy risk that will most likely change your life for the better.

If you don’t know anyone in Vietnam and have never visited before then for sure it will be that much harder for you to network. Perhaps traveling here first is in order to see if you enjoy Vietnam as a tourist (you could do a regional tour as well to see if another place is a better fit). You can schedule some coffee meetings during this “exploratory” phase and then after doing some more primary and secondary research you can decide for yourself if Vietnam is the place for you. If you do decide to come back then you’ll have some contacts in place and will be able to expand your network accordingly.

Don’t be discouraged if it takes longer than you expected to find a job—you’re just proving that you really want to be in Vietnam and sooner or later someone will recognize and appreciate your efforts. Stay focused on the long-term and don’t try to take shortcuts here or venture into the darker side of Vietnam. In a country that is not yours, the locals will always have the upper hand as they have the language, relationship, and experience advantages. There is a high risk that you will end up on the wrong side of things if you embark in any of their schemes. That also goes for other expats you meet—Vietnam attracts different kinds of people for different reasons so use your judgment and trust your intuition in new or ambiguous situations.

Suggestions for Success

  1. Learn the local language (you will save so much time and build relationships more quickly)
  2. Learn the local business culture (you will be able to avoid faux pas and participate and contribute effectively and appropriately in business settings)
  3. Learn the history (the Chinese, the French, the Japanese, and the Americans have all directly influenced Vietnam’s history at one point or another—how might that affect the Vietnamese perspective toward foreigners?)
  4. Understand the “pulse” of the city and country (What might your city be like in a year? Or five years? What are the major ongoing infrastructure or development projects?)
  5. Recognize opportunities and how to leverage them, and your global network (Do you see a product or service that Vietnamese consumers would want or need? Do you have a friend who has skills that would be valuable to a company in Vietnam? Make connections, both in person and for potential opportunities.)

Being based in Vietnam makes all of the above suggestions easier to implement. Even prior travel to Vietnam looks more credible when applying for jobs or talking to hiring managers. The surest way to finding a position where you can add value and grow is by finding an organization whose mission, values, and projects you are interested in. Then, you can create a strategy for getting to know people in that organization and from there the possibilities are endless. Remember, you are looking to get your foot in the door so stay focused on gaining experience and time working in Vietnam—from there you can prove your value to your organization and create your own career path in the country or region. Good luck!

 

 

Why waste time trying to figure out which is the correct wire when you can just run a new one?

Vietnamese Work Culture

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If you are coming to work in Vietnam from the west then it might take some time to get used to the Vietnamese way of doing things, which can be effective in its own way (it works here after all) but can also be off-putting to some people and bewildering to others. The work culture here is a mixture of indirect communication, posturing, a heavy top-down management style, and (for some workers) a “good enough” mentality when it comes to performance. Needless to say, it can be challenging to communicate your vision for how something should be done based on a client’s or your requirements.

Vietnamese workers have different professional needs than workers in the west—both in the office and on site so you might have to employ different communication techniques and different ways to motivate them in order leverage their strengths once you begin to understand how to effectively communicate with local workers. If an option, starting a new worker on a smaller project and then gradually expanding his/her scope is a good way to build his/her confidence while minimizing organizational risk. Whatever it is that you expect of a worker here, you should be able to simplify the process as much as possible or should have even attempted the process yourself beforehand to know what the pitfalls are for workers. Perceptions of good design, aesthetics, and fashion are very different here from the west—explore these arts with an open mind but be aware of the limitations in terms of technology, skill level, and approved content.

Vietnamese are generally not geared toward being creative (in part, due to the educational system of learning and for fear of losing face) when it comes to work tasks so they can experience some trouble coming up with new ways to improve processes or in creative fields such as design. Being creative may simply be too risky for them since it requires thinking about concepts, products, services, etc. in a way that hasn’t been thought of before—and it lessens the chance of success since no one has done it that new way before. Similarly, for Vietnamese workers to imagine something being done a new way via your explanation might be hard for them. Therefore, Vietnamese workers seem to fall back on “tried-and-true” ways to solve problems—which doesn’t always scale well and may be counterproductive in some cases if a step in the process has to be redone due to different (international) requirements.

However, Vietnamese are generally good at copying things, i.e., if you show them exactly how you want something done in terms of a process and the finished result then that will increase the chances of your satisfaction for the product or task end result. This method can be helpful in batch manufacturing or for installations in construction. Vietnamese workers are also able to skillfully digitally recreate and combine graphic art as a base for future modification for whatever project you might be working on but they will require guidance and input from you. (Note: If you are hiring locals then they might leave to form their own company once you train them. There’s no way you can compete with them on wages because they will have a much lower cost of living than you do.)

Coming from the west, you might notice a lot of inefficiencies in your first week or month or year in your local organization but it would be wise to refrain from actively trying to change things until you’ve proven yourself to your local colleagues and built up some goodwill. A possible first step in the right direction might be to push upper management for the dismissal of underperforming teammates especially if it’s necessary to shape a better organizational culture/fit ( however, it can be hard to fire workers due to labor laws and/or relationships).

Managing Vietnamese Workers

If you are a manager in a Vietnamese company, then try to get to know your direct reporting team as much as possible. Go to café outings as a team (the male coworkers will probably be willing to go for beers but the female coworkers generally won’t) and participate in other semi-professional bonding experiences. As long as your team performs to an acceptable level (to those you report to), and your client or manager is happy then there really isn’t a need to change much except for the professional growth of your team.

At first, it might be hard to find out the strengths and weaknesses of your team because Vietnamese are generally shy and don’t naturally “sell” themselves. One of the biggest problems here is with lack of confidence: both with confidence in their abilities to succeed and in their confidence to ask clarifying questions without looking stupid (so assumptions are made and things are shoved forward at times). Don’t be surprised if you get lame responses for why something is late or wasn’t done as asked. Patience and polite firmness (“I’m sorry but I can’t allow or do that.”) are the only ways to be effective in those situations. Your top talent on the team might be the most reserved and you’ll have loudmouths who will talk and obfuscate their way to the top if you allow them to. Figuring out who is the real deal and who is just puffing his/her chest will take some time to figure out. Don’t underestimate or write off someone here based on a first impression; once you get to know them then you will be able to discern if they are competent or if they are a liability. It could be that with the right training, a good worker can become a great one.

Great workers can be hard to find because there is generally not much appreciation for the consequences of doing something one particular way versus another. The path taken by most workers here is usually the shortest and the one with the least resistance, especially in blue collar fields. This short-term focus can be incredibly frustrating at first because it requires addressing basic elements that you can take for granted elsewhere. For example, trade workers might show up to repair something in your home and then proceed to use your kitchen knives as their tools or your dish cloths as their rags to wipe down things (if they even clean up afterwards). They might even show up hungover or drunk as well so it could make for some interesting home repair experiences. The point here is that workers require more supervision than in the west (at least for the first time going through a process) or else you will find them using your butcher knife as a shovel, your steak knife to scrape paint off steps, and your paring knife to apply some chemical goo somewhere (yes those are all real examples but skill levels vary across local organizations).

Training Vietnamese Workers

That being stated, the best way to train workers here is through positive reinforcement, i.e., focusing on the things that are done right and minimizing the focus on negative aspects unless they are mission critical, e.g., “Do it more like the way that you previously did.” Any critical feedback should be done in private and praise should be given in public. Be cognizant of age differences between you and your counterpart because if you are younger than him/her then it could result in some awkward disagreements, especially if you feel that s/he is wrong (elders are usually given authority) and vice versa. The best way to move forward in situations like those is to focus on consistent future performance and try to get everyone on board in a harmonious way. Eventually, once you bond with your teammates, you will find that they will smile more, laugh more, and may even touch your arms or shoulders more when communicating with you. Some workers may be more affectionate than others but it’s just a way of showing you are one of them especially if there are language barriers. Regardless, one thing is guaranteed: they will all nap so it might be wise to change training schedules to meet those napping needs. Napping is part of daily life here during lunchtime; the workers will either fall asleep at their desks or find a beanbag or other comfortable surface (or will even end up on the floor). As they say, “don’t knock it until you try it.”

Future Vietnamese Workforce Potential

So while the Vietnamese workforce definitely has room to improve and grow, the trend in recent years is positive because the youth here are simply great. They are bright, optimistic for the future, talented, eager to learn, and focused on improving their socio-economic conditions. It might be this current generation that can unlock the full potential of Vietnam’s human capital resources. Those who study abroad are bringing back a different mindset for problem solving to share with the local organizations here and are actively involved in helping other students who haven’t had similar opportunities. The youth are interested in working with and learning new techniques, best practices, and new skills from foreigners and are, more importantly, generally honest about the challenges ahead for today’s Vietnam.

While it won’t be easy working with locals, and projects might take longer than you originally thought, and you might have to do more than your “fair share” of responsibilities to get something done the right way… with the right team, the right attitude, and the right training anything is possible in Vietnam. And soon enough with new technologies, new skills, and new attitudes that are being adopted on a daily basis, everything will be possible in Vietnam.

Time In Vietnam

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A common sight in front of many businesses here.

A common sight in front of many businesses here.

Men playing a game in front of a temple.

Men playing a game in front of a temple.

Time on display.

Time on display.

A barge ran aground on the Mekong River.

A barge ran aground on the Mekong River.

Keep going forward and you will eventually get there or get run over.

Keep going forward and you will eventually get there or get run over.

One of the biggest differences between this part of the world and the west is how long things take to get done. If something takes x amount of time over there then expect it to take 3, 4, or 5x as long here—unless you have a well-connected local partner to fast track whatever it is you are doing in terms of paperwork or approvals. That’s for Saigon; it’s an even slower pace in Hanoi.

A simple task such as ordering at a restaurant might go a little something like this:

Person A orders.

Wait staff repeats Person A’s order.

Person A confirms.

Person B orders.

Wait staff repeats Person B’s order.

Person B confirms.

Wait staff repeats the entire table’s order.

Person A and Person B confirm.

That’s assuming the wait staff understood the orders right the first time. Getting the correct order on the table is a different matter entirely. 🙂

Even the fast food here isn’t really “fast” food (in the traditional sense) since Vietnamese families often fill various franchises around dinnertime, spending more time than required to just pop “in-and-out” for a meal. It’s a bit of a “badge of honor” to be seen in a western establishment for the average Vietnamese family because it shows they can afford eating there. Combined with the coffee culture here, people spend hours inside F&B shops chatting, talking, operating on social media, and generally being seen.

So, time has a different pace and value here than back west. If you take things here at face value then you will run the risk of wasting a lot of your time.

When working with locals, a common trend is overpromising and under delivering—especially when it comes to deadlines. You should not believe that something is done to the required specifications until you have seen it with your own eyes and have had time to review/test it.

Missing five deadlines in a three month period is a very real possibility here (a real example) and after a certain point the old adage comes to mind, “Fool me once, shame on you; fool me twice, shame on me.”

Not everyone, but many locals here are focused on short term results which is evidenced by driving norms, etiquette (try stepping off a lift and you will see), and not doing things the “right way” the first time because it would simply take too long. Problems in a process are usually due to a lack of planning until it’s almost too late and then it’s rush, rush, rush!

Needless to say, communicating effectively can be very difficult here. You can explain something via phone, text, email, in person, whatever and it still might not be done the way you expected or wanted. Sometimes, people might tell you “yes” just to get rid of you or to save face or because they don’t understand what you are asking and are trying to be polite. Try to ask someone for directions and you’ll quickly understand how pointless it can be sometimes.

Short of learning the local language, speaking slowly, and rephrasing the major points go a long way toward reducing miscommunication. Hiring an interpreter is also an option but not the best long term strategy. The longer you stay in Vietnam the more seemingly strange things will start to make sense to you—but it’s a steep learning curve unless you take the time to research Vietnamese culture and history (and that includes learning the language). Asking local friends for clarification will help you understand Vietnam as well but be careful how you phrase your inquiry less you offend them.

To add to the language barrier frustration, you might have trouble figuring out what is true and what is false since everyone’s favorite English word seems to be “yes.” For example, if you ask a local colleague to sign off on some items that s/he was to have completed already the response you get might be affirmative but the task might not actually be done. “Trust, but verify” should be the mantra for westerners operating here or else you will become mad with frustration and waste valuable time.

Time here is abundant for many people; for example, a typical lunchtime might be 1.5 to 2 hours with eating, recreation, and napping. The heat and humidity can negatively affect productivity but the cost of labor is inexpensive so productivity is not as much of a concern as it is in the west. Locals could underappreciate your time when it comes to meeting start times and having you wait around for them. However, you shouldn’t show up late to a meeting because you assumed your counterpart has a polychromic view of time as well—not all locals are the same. There are also many temptations and distractions from professional life so it can be easy to slip into some bad habits that might not be so available or accepted in the west. Balance between work and personal interests as well between stress and relaxation are essential to being successful in Vietnam (and everywhere but, especially in Saigon, it seems easier to jump off the deep end for some people).

We counted three welders on site.

We counted three welders on site.

Some Vietnamese Phrases That May Save or Waste Your Time

“You need to move slow if you want to move fast.”

Meaning: Don’t pester the person you need to get something done or else they will dig their heels in and operate even more slowly to spite your perceived meddling Let them work at their own pace—in the end it will be faster and less stressful. If you are answering to westerners for a project then this could be a problem for you.

“You need to spend money to make money.”

Meaning: Vietnamese are attracted to those who they believe are successful. It might be real, or it might be an image. It could also be a fatalistic approach to justify whatever crazy scheme is going on. Finding out what is really going on could take a lot of digging and time—better to move on or do some circular research via mutual trusted contacts.

“In the end it will be okay so if it’s not okay then it’s not the end.”

Meaning: Largely an excuse for deflecting criticism or remaining unfazed by concerns that are presented. It could be the case if there are other unknown actors (usually family) who will swoop in to save the project in the final hour. It doesn’t sound like a promising result if that is their best strategy, right?

“Don’t need.” (“Cannot.”)

Meaning: You haven’t convinced a local decision maker that your suggestion is useful. Try a different approach because repeating yourself will just waste everyone’s time.

For example, when the founders of an online food ordering website here went around trying to get local restaurants to “install a machine that would print out orders from the internet” they eventually pitched it as “a salesperson you don’t need to pay.”

That resonated with restaurant owners and led to the adoption of the machine and their success. If you get a “no” the first time, then ask a different way or provide a range of options that you are willing to work with.

“Not your job, not my responsibility.”

Meaning: You are working with the crème de la crème! Cut your losses and move on (thereby saving your time). If that is not an option then you had better get into “CYA” mode.

Different Approaches for Different Situations

Whatever the situation, if you don’t get the response you wanted then ask someone who has been in Vietnam longer than you have for some feedback—chances are they will have some good suggestions for you. At the very least, “talking out” your problem will allow you to simplify it as you explain it to someone else. If that doesn’t work then as they say, “experience is what you get when you don’t get the results you wanted.”

Remember, the challenges you will be faced with while working here will be a culmination of differences—differences of visions, standards, expectations, of course languages and culture, and ultimately, opinions. Just keep in mind that it’s all a learning experience and a valuable education for what challenges might again lie ahead in the future when working in Vietnam (and you will already have part of the solution for the next time!).

Prepare to move slowly (budget, timetable, travel plans, etc.) but don’t waste time here since you won’t be able to get it back. Above all, the more time you spend in Vietnam, the more efficient you will become as long as you maintain your high standards and don’t try to change the whole country. Always remain patient, calm, and professional throughout every situation—even when those around you are not because it’s one of the best ways to ensure that you won’t have a bad time in Vietnam. After all, you’ll have peace of mind knowing that you did the right thing.

Communicating in Vietnam

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Coming to Vietnam and doing things the way you did them back home simply won’t work. The best case scenario is that your local staff will undermine you at every opportunity, and the worst case scenario is that you will lose money, time, and an opportunity to build a relationship. Make no mistake: you will get figuratively smacked in the face if you come here with a western attitude and approach to solving problems.

Vietnam is notoriously difficult for doing business; the cards are stacked against foreigners. The laws favor locals, contracts don’t hold nearly as much value as back home, and you are a walking Euro or Dollar sign to many people here.

Many business deals in Vietnam are done in a venue: a bar, karaoke, restaurant, etc. But to get to that point any lasting relationship in Vietnam begins with a coffee meeting, usually after an introductory meeting through mutual friends in a comfortable setting.

Another route to that initial coffee meeting might be through a networking event usually run by a national Chamber of Commerce. These are relaxed settings for meeting anyone who has business interests in Vietnam. Business cards rule in Vietnam; you can get about 200 quality cards for $15 in Hanoi. You may find that at networking events people might pay more attention to your title than your company’s name. They are either sizing up decision makers as potential allies or trying to decide if you are older or younger than you look.

Vietnamese society is built on age differences and age distances. Whether someone is older or younger than you determines how you address them and how they address you. Vietnam is a patriarch-oriented society so the most revered member of every family is the grandfather.

This patriarch authority/respect is reflected in the business world by the relationship between a manager and his/her subordinates: it is a one-way downhill street. Vietnamese workers are almost wholly submissive to leaders and managers. A teacher, boss, or whoever is in a position of power is almost never challenged by their subordinates. If, as a stakeholder, you point out a potential problem don’t expect any pats on your back. The response you might get is more of an antagonistic one for pointing out problems where there were seemingly none before.

Schedules, for the most part, are guidelines unless you have a different prior experience with the schedule presenter. Furthermore, contracts don’t really mean anything either which is part of the reason why the Memorandum of Understanding (MOU) is preferred in Vietnam. A contract here is an acknowledgement of a relationship that both parties agree to put effort toward maintaining. Why? Because enforcing them is much easier said than done in this legal environment and usually, whoever is better connected wins the case if it’s brought before a judge.

For one, Vietnamese don’t like to email—they prefer texting, and in-person meetings most of all. Therefore, it can be tricky to establish a “paper trail.” Even if you get your local partner to sign off on something, it is not guaranteed because the task might not even be done. Communicate requirements via email, text, phone, in person, and demonstration and the other party will almost always say they understand. Ask if something has been done and the response will almost always be yes. But if you go and check the task’s status, then it might not have even been started yet.

The best way to spot problems is during the process not after. Don’t take deadlines or statements at face value here.  Vietnamese are generally shy—especially in groups. They won’t ask questions if they don’t understand something unless they absolutely have to—which means often things are not done correctly the first time. And no way would one Vietnamese ask another coworker for clarification of a certain process for fear of looking stupid.

Motivating local workers is a challenge: some companies try to communicate family/work life balance, reasonable hours, and opportunities for advancement (based on meeting goals) to their workers. But for the average Vietnamese company, there isn’t much training or development available other than “learn as you go,” if at all. Expect to have lots of interactions “lost in translation” unless you have an awesome interpreter or your counterpart understands your language fairly well. The challenges presented in doing business will be the culmination of differences—differences of visions, standards, expectations, languages, culture, and ultimately, opinions. At times you will be frustrated. However, it will be a learning experience and a valuable education for doing business in Vietnam. The onus will be on you to respond to misunderstandings, unreasonable requests, and perceived rudeness with grace since you are a guest in Vietnam.

Finding a trusted local partner is perhaps the biggest challenge of all in Vietnam because through him/her all things are easier. There are several circles of expats in Hanoi and Saigon: NGO, Diplomatic, English Teacher, Entrepreneur, and Startups. Find someone who has been here longer than you to help guide you toward potential trusted partners or else you may be burned on your first or second time around.

Understanding the Vietnamese mentality is a major part of making sense of the responses here. They are generally risk averse for formal businesses unless gambling is involved. If your audience has not seen something done before in Vietnam then it is not possible for that business model to exist no matter how much you try to convince them. “If it was possible then someone would have done it so since no one has done it before then it’s not possible.” That’s why there are so many copycat retail stores on the same street.

The other reason they are risk averse is because failure is shunned so much as a result of losing face. Disagree in private when possible and explain that you cannot give in on that particular position. Vietnam is not the place to point blame and determine who is rightfully responsible if you want a deal to stay on track and relations to stay positive. It will take working together to move forward for everyone’s benefit—and it needs to be a win, win, win situation or else you will lose.

Needless to say, you will save time by learning the language—although it is very hard with a western tongue. Some expats rely on their local wives or a personal assistant to translate. Try to at least be proficient with the numbers and guidebook Vietnamese.

Overall, Vietnamese are proud people—they have a long history of self-assertion and self-determination. Learning the language is one way to get a better understanding of Vietnamese. They will respect you for it and give you the benefit of the doubt more often than not if they know you took the time and effort to learn their language.

Even though Vietnam is changing and modernizing, an element of “traditional Vietnam” still exists. Keeping an open mind and keeping politics to a minimum is a pretty prudent way forward. Don’t get discouraged by setbacks or partnerships falling through—it happens everywhere. Learn from your mistakes and be better prepared for the next time in a similar situation. Above all, keep knocking on and opening doors in Vietnam to see which one fits you best—if you stay here long enough then eventually one will.