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The Changing Face of the Auto Market

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On August 27, 2014 the first Rolls-Royce Motor Cars showroom opened up in Hanoi, the capital city of Vietnam. Two events were held at the showroom in the HCO Building at 44B Ly Thuong Kiet, next to the Melia Hotel. One event was held for members of the press from 2:00 PM to 4:00 PM and included the official ribbon-cutting ceremony. Later, from 6:00 PM to 8:00 PM, an event for VIPs and potential customers was held in private at the showroom and adjoining outdoor patio.

British First Secretary, Andrew Holt, attended the event and delivered some prepared remarks about the significance of the first Rolls-Royce Motor Cars showroom in Vietnam. Mr. Holt expressed that he was honored to be part of the Vietnam success story. In fact, the common theme throughout the press event was the “remarkable success story” of Vietnam and the “country’s ambition for the future.”

In effect, the event on Wednesday was put into motion over a year ago. In June 2013 Rolls-Royce Motor Cars announced Regal Motor Cars as its first authorized partner in Vietnam. The chairman of the authorized dealer, Rolls-Royce Motor Cars Hanoi, is Minh Doan with Trung Doan serving as the Chief Operations Officer. In the time leading up to the official showroom opening ceremony on Wednesday, the brand’s Facebook page had already accumulated over 32,000 “Likes” which, according to Mr. Holt, served as an example of how the Vietnam market was ready for an official dealership.

When directly asked about unit sales in Vietnam prior to the opening of the official dealership, Paul Harris, regional director Asia-Pacific at Rolls-Royce Motor Cars, responded that it was difficult to know exactly how many cars had been sold in Vietnam due to unofficial channels but that it was around 100 cars. Mr. Harris revealed that Rolls Royce had directly supported one car’s production from Goodwood, England, where the company’s cars are assembled by hand.

Mr. Harris reiterated that now that Vietnam has an official dealership, it is the place to go to satisfy consumer demand for the brand and Rolls-Royce Motor Cars sees the Vietnamese market growing, with great potential in the future. In terms of global demand, the Ghost is the most popular model, followed by the Wraith and the Phantom.

Finding a Suitable Vietnamese Partner

The on-boarding process for the local partner was revealed by Mr. Harris; first, potential Vietnamese partners were encouraged to apply. Rolls-Royce then assessed the candidates, and analyzed the business, the partner fit, and passion of competitive candidates. Rolls-Royce selected Mr. Minh in part because he is a Rolls-Royce owner himself and the Rolls-Royce team felt that he was in a unique position to understand the brand and to deliver the brand’s message and values to the Vietnamese market.

During the Q&A portion of the event, a member of the Vietnamese press asked Mr. Harris why Regal Motor Cars was chosen as an authorized but not exclusive dealer. Mr. Harris responded that, for Rolls-Royce Motor Cars, authorization means exclusive as it has no intention to expand to a second dealership in Vietnam. Mr. Harris wrapped up his response by explaining that Rolls-Royce Motor Cars knows that demand is here in Vietnam for significant sales and that “we and our dealer partner are happy with the sales forecast but won’t divulge numbers.”

Rolls-Royce Motor Cars, currently owned by BMW AG, is in the midst of expansion plans in the Asia-Pacific region outside of China. Last year a showroom in Osaka, Japan was opened up and a new dealer partner was announced in Manila, Philippines as well.

The “Oriental Sun” Rising in Asia

On display was an $1.8 million model, the Oriental Sun, an exclusively produced limited edition model for Vietnam. That extravagant model was sold during the second event held at the showroom at night. In many ways it’s amazing that there is even a market for such vehicles in a country where the gross national income per capita is around $2,000.

It’s not surprising that the first Rolls Royce dealership opened in Hanoi instead of Saigon. Many luxury brands pass through the capital before setting up shop in the south where the customers usually evaluate products on more criteria besides price and/or country of origin. Rolls-Royce Motor Cars would be wise to continue these custom runs of single units (in addition to its Bespoke program) so as to allow potential customers in Hanoi and the surrounding areas to further differentiate themselves from their contemporaries—especially in the northern provinces of Vietnam. After all, one measure of uniqueness is the price tag between the same or similar products.

The Vietnamese Auto Market

Rolls-Royce Motor Cars’ expectations for the Vietnam market are in line with those of other auto manufacturers. Recently, Mercedes-Benz Vietnam announced that it had sold more than 1,000 cars in the first six months of the year. These sales figures amounted to a 70% increase from the same time last year and set a new record in the company’s 19 year history in Vietnam.

In total, more than 65,000 vehicles were sold in the first six months of the year according to Vietnam Automobile Manufacturers Association. A brand new car in Vietnam can cost two-to-three times or more than a similarly equipped model in the US due to taxes and import duties. Vietnam Automobile Manufacturers Association projects that a total of 130,000 vehicles will be sold this year, compared to 110,519 in 2013.

Luxury cars are becoming more common place in cities like Hanoi and Saigon. One can spot Lamborghinis, Ferraris, Maseratis, Bentleys and the full gamut of European and Asian luxury vehicles at any time of day or night while walking in either city’s downtown. While not everyone can afford such exotics or high-end luxury vehicles, there is still much demand for and attention given to these foreign brands.

In 2013, the Vietnam Motor Show, held at the Saigon Expositions and Convention Center (SECC) in District 7, Saigon drew over 155,000 visitors over the course of four days last October and resulted in the sale of 200 cars during the event. For comparison, the New York International Auto Show (NYIAS), the oldest and biggest auto show in the US, attracts slightly more than a million people over nine days. At the Vietnam Motor Show last year, some luxury brands such as Infiniti and Lexus made their first appearances at the event. And last year more than half of all luxury sales were comprised of Mercedes Benz vehicles—a sign of the preferred auto brand by Vietnam’s elite.

For those looking to score a deal in Vietnam’s pre-owned car market there are a myriad of options available including, but not limited to:

The Future of Auto (and Luxury Goods) Sales in Vietnam

As Vietnam’s economy grows, so too will grow the number of successful individuals who can afford the high price tags of luxury goods offered by established brands. These brands, of course, include luxury auto makers. In some ways, a car someone drives in Vietnam is more important than the home where s/he lives because everyone can see his/her car and few may see the inside of his/her home. This value placed on public appearances can lead to interesting situations where a high-end luxury vehicle may be parked in front of a modest looking house (or an attempt at an Asian castle).

Regardless, the number of people who will be able to afford these luxury vehicles and other goods in Vietnam will only increase. Auto and other luxury goods makers will need to find new ways for the nouveau riche and super rich to distinguish themselves from the hoi polloi. At the same time, the newest rich joining the ranks of the newly rich also leaves the door open for after market modifications from esteemed companies such as Brabus. Then, the only question left to answer will be where to drive such a super-charged beast? For sure not in rush hour traffic in either Hanoi or Saigon.

Still, the Vietnamese dream is to drive to work in a car. It serves as one measure that s/he has “made it” and it also helps to insulate from bad weather, pollution, and nasty injuries resulting from traffic accidents since cars are higher in the pecking order than motorbikes and other two-wheeled modes of transport.

The takeaway here should be that if rich Vietnamese can afford luxury vehicles with high sticker prices then they can probably afford whatever luxury brand you represent (and they will most likely want to buy it). The key is to set the new standard for whatever experience you are trying to create—because once you do that then most consumers and other brands will follow. Getting that first domino to tip may be tricky but the rewards will surely make it worth your while to make it happen.

A closer look at the showroom's facade.

A closer look at the showroom’s facade.

Mr. Holt addressing the crowd.

Mr. Holt addressing the crowd.

Right before the unveiling.

Right before the unveiling.

The exterior of the showroom.

The exterior of the showroom.

After the unveiling.

After the unveiling.

Mr. Harris addressing the crowd.

Mr. Harris addressing the crowd.

During the Q&A session.

During the Q&A session.

Mr. Harris and Mr. Minh.

Mr. Harris and Mr. Minh.

Before the event.

Before the event.

The team at Rolls-Royce Motor Cars Hanoi.

The team at Rolls-Royce Motor Cars Hanoi.

Vietnamese press checking out the Oriental Sun.

Vietnamese press checking out the Oriental Sun.

Current Perspectives of Vietnam

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History is a series of perspectives on events; the victor usually writes the final version but there is no denying that there are Chinese, French, American, and Soviet perspectives when exploring Vietnam’s past. Examining present day Vietnam is seen through the eyes of individuals—those who have come here for the first time, locals, or those who have adopted this crossroads of development and tradition as their home. No matter which category you fall into, Vietnam will definitely be a wild and crazy ride at first, filled with extreme high points and it will also leave you frustrated and bewildered at other times.

On this blog, we mostly explore cross-cultural issues, business, and recent news and events all in an attempt to better understand Vietnam, its culture, and its people. However, the Vietnam experience is not uniform–that is to say that it is different for everyone who lives, works, or travels in Vietnam. For example, imagine a 20-something year old single British male English teacher’s experience in Saigon compared to the Hanoian experience of a 30-something year old Indian wife and mother of two. Or perhaps that of a 50-year old single American businessman working for a multi-national corporation (MNC). Or a young French woman, in a long-distance relationship, who is working for a non-governmental organization (NGO) in a remote town located in central Vietnam. You get the point (and, by the way, these were all fictional but plausible examples).

Perhaps the most interesting perspective is that of the Viet Kieu (or “Vietnamese Sojourner“). Thousands of people fled Vietnam during the Second Indochina War and thousands more fled after Vietnam was reunified in 1975, resulting in millions of people creating the Vietnamese diaspora throughout primarily North America and Europe. Many Viet Kieu families left Vietnam with just the clothes on their backs and settled into a new country to call home, usually starting over again with almost nothing. Subsequently, the Vietnamese government took a hardline position on those who had fled the country and denounced them as traitors. After some years, the Vietnamese government eventually called for the Viet Kieu to come back to Vietnam to reintegrate and afforded them special property and business rights in order to help speed up Vietnam’s economic development.

The younger Viet Kieu bring an interesting perspective to Vietnam—they usually grew up in culturally Vietnamese households but were exposed to western cultures and societies–undoubtedly mashing up the best elements from east and west. A Viet Kieu’s ability to have one foot in the west and another here in the east allows him/her to integrate more easily here and to bridge the cultural gap that non-Vietnamese sometimes find difficult to overcome. However, some Viet Kieu may, over time or immediately, reveal an arrogance that local Vietnamese can sense, perhaps due to socio-economic disparities. Actually, the best combination for people who seem to understand high global standards and the local way of doing things are Vietnamese who have successfully studied abroad and have been exposed to a different lifestyle. They are able to reflect, learn, and grow in ways that only travel and living abroad allow.

Only by opening up to differing perspectives can we begin to understand the world around us and how we fit in it. So, the following is a non-exhaustive list of blogs and videos relating to life in Vietnam (from mostly an outsider’s perspective). Of course, there are also Vietnamese bloggers and video bloggers (Vbloggers). We can’t share links to them here for legal and liability reasons (and if you don’t speak Vietnamese then they may serve little use to you, especially if using Google Translate).

It’s important to note that GKTA Group Limited neither endorses nor condones the varied views expressed in the blogs below—unless expressly stated otherwise. They are listed to demonstrate that no two people will have the same Vietnam experience although there will be many similarities and overlapping challenges.

 

Flying The Nest

Who? An American English teacher expat in Saigon

What? A pretty raw look at living in Saigon as an English teacher and interesting experiences encountered while meeting other cultures.

Why? Because English teachers seemingly make up 80% of the expats here in Vietnam.

You should check out this post.

 

Why Am I Here?

Who? A British expat who has made Saigon her home with her multi-cultural family.

What? Ms. Ray mostly “ blogs about the ups and downs of writing and living in Vietnam.”

Why? Insight from someone whose first time in Vietnam was in 1996 and has a deep reservoir of global experiences.

You should check out this post.

 

Because We Camp

Who? A traveling, backpacking, really rad couple going by the brand, “Because We Camp.”

What? A landing in Hanoi and subsequent travel down south to Saigon via motorbike.

Why? Included because it provides an accurate portrayal of a common first impression of Vietnam and it was enjoyable to watch.

You should check out this episode.

 

My Seasons In Saigon

Who? A former American university president.

What? A transitional blog, where the writer shares his thoughts and juxtaposes historical themes with cultural elements.

Why? Experience in the American education system and now heads up a university in Vietnam.

You should check out this post.

 

World Economic Forum Blog

Who? From current Prime Minster Nguyen Tan Dung.

What? A summary of the economic state of Vietnam and some projections for the near future.

Why? Self-explanatory.

 

Welcome To Vietnam

Who? From an American political writer.

What? A first-time account in Hanoi and Vietnam largely through a political lens.

Why? Entertaining first impressions of being in Hanoi–looking forward to Part 2 in Saigon.

 

Graduate of the Year

Who? NY Times writer Nicholas Kristoff.

What? An extraordinary look at one Vietnamese girl who defied all odds to become Graduate of the Year.

Why? Recent American college graduates, here’s one face of your competition who is willing to work harder for less money than you are.

 

Expat Diary: Saigon

Who? A nomadic photographer.

What? One woman’s view as an expat in Saigon.

Why? A blog about living in the moment—something that can be hard when adjusting to new settings, new faces, and new conditions.

You should check out this post.

 

SoJournaling Vietnam

Who? A younger American Viet Kieu.

What? Straight from California and living in Saigon for at least three years, Kyle Le (or ethnic version: Ky Le Le) showcases various interesting experiences from finding a good burger to asking foreigners what their impressions are of Vietnam.

Why? He has some interesting interviews with celebrities and foreigners.

You should check out this clip.

 

Departures. Vietnam.

Who? An American/Canadian team ventures off in Vietnam in association with National Geographic.

What?  A look at a Viet Kieu’s first time in Vietnam, traveling throughout the land, and the importance of family.

Why? Come on, it’s National Geographic.

 

And finally, from the perspective of a drone.

 

The point of this post was to communicate that everyone has something to add to the tapestry of the Vietnam experience but also that those experiences should be scrutinized (even ours) until the reader has had the chance to check out Vietnam for him/herself. There is no substitute for direct experience but short of that, the account, analysis, or opinion that you entertain should be sound, relevant, and contextual.

In the end, Vietnam is what you make of it—through the good times or the bad times or whatever experience in between. It’s not always easy to live here but after some time you will come to enjoy it and perhaps even thrive in the environment here. If not, then the alternatives always available are to go back to wherever you came from or to move on, which, in that case, there is no shame since Vietnam is not for everyone.

But while you are here, the only thing that you can directly control (and throughout life) is your attitude: toward others and toward the situation that you are in. We hope that these other current perspectives of Vietnam have allowed you to gauge how your experiences and perceptions are in line with other people. Should you wish to, please share your own experience in Vietnam below. 

Opened in October, 2013 by the owners of SIN Lounge and The Living Room.

Vietnamese Music Trends

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The music scene here, like many things in Vietnam, is constantly changing. Traditional, pop, and electronic music all fuse together to take new forms, create unique sounds, and propel sub-cultures forward. While Vietnam has had its own flavor of electronic music, known as Vinahouse, it seems as if the global EDM craze is finally beginning to take a hold here with underground events leading the charge.

Late last year Steve Aoki performed for the first time in Hanoi (during his first trip to Vietnam) and then proceeded to celebrate this year’s Tet holiday with a show in Saigon. And earlier this year, Wally Lopez came back to Blanchy’s Tash in Saigon after his first time the year before. Now, Hardwell is the latest house music DJ scheduled to come to Vietnam for the first time ever as part of his “I am Hardwell” tour. Hardwell will be playing in Saigon’s Quan Khu 7 stadium on September 28 and General Admission tickets are currently on sale for 600,000 VND (approximately $30). VIP, VVIP, and CA tickets are also available.

[Update August, 2015: Zedd recently played in Ho Chi Minh City and Skrillex is scheduled to play in both Ho Chi Minh City and Hanoi next month.]

The larger-than-life style of music that is presented by Steve Aoki, Hardwell, and their contemporaries is full of high-intensity and high-energy beats and rhythms that lead into a “drop” where the crowd is simultaneously jumping or fist-pumping in unison. This variety of house music is growing in popularity with young and trendy Vietnamese here where most of the electronic music heard takes the form of Vinahouse, a hard-hitting, repetitive beat that continues until the end of a song.

Rumored to have originally been a Russian intro beat (lasting for no more than 30 seconds), the steady thumping seems to have captured the hearts of Vietnamese electronic music enthusiasts as they extended it to last the entire length of a song. Vinahouse can be heard everywhere: gyms, discotheques, and even street shops blare Vinahouse through speakers set up on the sidewalk in an attempt to draw a passerbys’ attention.

Actually, most of the music that can be heard in the streets of Vietnam’s cities comes in two styles: Vinahouse, or more traditional and soulful Vietnamese songs that usually have a somber deliverance. As in much of Asia, karaoke is popular here and citizens will sing karaoke in their homes with the volume turned way up for their neighbors to hear in the early to mid-evening. Some entrepreneurs have even set up portable “karaoke stations” on wheels where they can serenade diners on the sidewalk while they eat in exchange for a donation before moving on to the next group of diners.

The Music Scene in Vietnam

The music scene here is a far cry from the days of CBC Band. If you happen to go to any establishment where pop music is played then you will definitely hear Flo Rida’s Whistle at least once and perhaps several times per night. You might also hear variations of other American techno-remixed pop songs in some of the nightlife institutions of Saigon such as Lush, Apocalypse, and if you are unlucky/unsober enough to end up there, GO2 Bar on Bui Vien in Pham Ngu Lao. However, there are also Vietnamese clubs like Canalis and New Saigon where strictly Vinahouse tunes are blasted at dangerously high levels and patrons are dazzled with light arrays, lasers, and strobes while inhaling copious amount of cigarette smoke. Occasionally, some foreigners are mixed in with the crowd but the customers there are overwhelmingly locals.

Some of the more progressive and alternate locations for music other than remixed Billboard Top 20 hits and/or Vinahouse include Broma, Bootleg, and The Observatory in Saigon; and Cama ATK, Madake, and Rockstore in Hanoi. There are also small but growing communities comprised of lesser-known genres of music like DubStep and Drum and Bass (DnB). For example, Saigon Beats and Heart Beat Saigon are two organizations comprised of music enthusiasts who passionately promote new and different kinds of music and sounds in Saigon.

For live music, there are a number of options for covers and original performances. For example, bar chain Seventeen Saloon (present in Hanoi and Saigon) features live music (mostly rock) on a regular basis. And original acts such as Mai Khoi take the audience on a wild, sensual, and bilingual journey that pushes boundaries in what is perhaps one of the best live performances in Southeast Asia.

In terms of larger events, full blown music festivals such as RockStorm (a rock festival, as the name implies) and the HEC KPOP festival can appease fans of those genres–or headliners can opt for music venues such as Cargo in Saigon and Hanoi Rock City in Hanoi.

Vibration Festival: 24 Hours of Good Vibes

Interestingly, a growing trend in Vietnam is that of the “micro” festival whereby events are organized and operated in a gray legal area and the events lends itself to be more of an infusion of creative expression rather than cranking out popular hits while patrons in the VIP section post real-time photos on Facebook. Names like Eden, Quest Festival, Halloween Escape, Hanoi Sound Stuff, and A Dose of Escape all conjure up images of partying, dancing, and good times.

[Update August, 2015: Quest Festival V will be held in November, 2015.]

One such event was the Vibration Festival, which we attended last weekend. The festival was located about 10 kilometers outside of Hanoi at the nearby Minh Hai resort. The event started at 2:00 PM but we arrived around 9:00 PM and stayed until about 1:30 AM. By the time we arrived the bia hoi (literally, “fresh beer”) had run out so only shots were available at the bar. Our tickets were 100,000 VND (approximately $5) each but were double the price at the door for those who didn’t buy tickets in advance. Approximately 10 DJs were on the lineup with each playing a variation of some genre or sub-genre of electronic music. It was hot but the mood was pretty festive especially after midnight. The food was provided by a local company, Highway 4, and appeared to be almost artisan in presentation.

Americans, Canadians, French, British, and, of course, Vietnamese (plus other nationalities) were dancing under a full moon partially obscured by rolling clouds. By 10:30 PM the dance floor was full with a crowd that seemed to be about 85-90% westerners. Organizers estimated that around 300 people attended the event.

We had the opportunity to speak with the main organizer, an Irishman who goes by the moniker Bad GraFX. Like many expats, he now does something totally different than what he originally came to do in Vietnam. He started organizing events like Vibration Festival in order to have a good time and to be able to listen to the kind of music he and his friends wanted to hear.

The overall atmosphere at Minh Hai resort was relaxed and the heat didn’t seem to take the wind out of the sails for most people. Still, 24 hours of partying is intense, especially in the hot summer sun so it will be interesting to see the second iteration of the Vibration Festival and its changes, if any.

Music “And More” Festivals

Some people might not like mainstream musical acts as part of the western export “package” to developing countries because it overshadows local and independent artists. But getting globally recognized talent to perform in Hanoi or Saigon also raises Vietnam’s profile as a growing destination for international music genres and its fans–and it also potentially introduces locals and expats to new kinds of music. One thing is certain: these commercial headliners, micro festivals, and branded events will continue to shape Vietnam’s music scene as artists, musicians, and enthusiasts seek outlets for creative expression here in Vietnam.

We would love to see a major electronic music festival with global and local names playing across different stages. Perhaps this vision could be realized in Da Nang due to the international airport and accessible coastline. Beautiful Hoi An is nearby which could also benefit from the overflow of a festival. And there is even space for such an event, in the former American airbase. Before that can happen, perhaps the next step in Vietnam’s evolving music scene is to combine music with film or interactive tech a la SXSW, MOSO, or Incubate (albeit on a smaller scale) whereby the music, art, entrepreneur, and tech communities can meet and merge to share views and exchange ideas. For sure, a Vietnamese mash up of those domains would be raw, unpredictable in its specific outcomes, and overwhelmingly positive in its products.

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.

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.