There's a reflex that activates almost automatically in the head of someone preparing to operate in Vietnam for the first time. The reflex is: Vietnam is "like China but smaller." Same continent, similar writing, somatic traits perceived as similar, generic cultural references to Confucianism, to hierarchy, to oriental patience. One studies a bit of Chinese etiquette, smooths some detail to make it "softer," and prepares for the trip convinced of having understood.
They've understood nothing. Vietnam has a thousand years of history of cultural independence from China, and a good part of that history consists precisely in the affirmation of not being China. The Vietnamese language isn't a variant of Chinese — it belongs to a different linguistic family, and since the twentieth century it's written with the Latin alphabet, not with Chinese characters. The political system is specific, the recent historical experience is radically different, the daily culture has its own references. Treating Vietnam as "China light" is an error regularly committed, and it's the first error to remove before planning any serious operation in that market.
A second category of common errors is born from the opposite: treating Vietnam through the filter of the cinematic image that many Westerners have inherited from American films about the Vietnam War. That Vietnam hasn't existed for decades. Contemporary Vietnam is a rapidly growing economy, with globally connected urban classes, with a structured openness to foreign investment, with cities — Ho Chi Minh City, Hanoi, Da Nang — that operate with levels of commercial sophistication comparable to other emerging Asian capitals. Thinking of Vietnam through lenses half a century old is a guarantee of speaking with people different from those you'll actually find at the table.
The first step to operating well in Vietnam is therefore to clear the field of both distortions — Vietnam as a variant of China, and Vietnam as a residue of the war — and to address it for what it is: a Southeast Asian economy in a phase of rapid transformation, with a specific culture that deserves to be known in its specifics.
Contemporary Vietnam, in operational coordinates
It's worth giving some structural coordinates before entering into the operational practices, because many arrive in Vietnam with imprecise references.
The country has a population of about one hundred million people, with a young demographic structure in a phase of progressive urbanization. The two large economic areas are Ho Chi Minh City (formerly Saigon) in the south, the real commercial engine of the country, and Hanoi, the political and administrative capital in the north. Da Nang on the central coast is the third growing economic area. The differences between North and South are significant even today in cultural codes, commercial practices, historical references — thinking of Vietnam as unitary is another common error.
The Vietnamese economy has gone through one of the most rapid transformations in the world over the last three decades, passing from a planned economy to a market economy with state control, with progressive openness to foreign investment. Expanding sectors: manufacturing (Vietnam is progressively one of the main manufacturing hubs of Southeast Asia), technology and digital services, food (Vietnam is among the world's main exporters of coffee, rice, fishery products), tourism, fashion and textiles, renewable energy.
The political framework is that of a single-party socialist republic, with the Vietnamese Communist Party as the only political force. This has concrete operational implications: some sector decisions pass through processes that include political dimensions, relationships with local authorities are part of the commercial activity, certain public transparency practices work differently from the European ones. It isn't a necessarily negative factor for those who operate there with preparation — it's simply a structural factor to incorporate into the planning.
Vietnam has significant commercial agreements with the European Union (the EVFTA, in force since 2020, has progressively eliminated most of the tariffs between the EU and Vietnam) and with many Asian countries (it's part of the RCEP, the Asian free-trade agreement). For Italian companies, the conditions of access to the Vietnamese market have progressively improved in recent years.
Patience, described for what it really is
All the blogs on Vietnam talk about patience. It's a true but generic observation, and it's worth articulating it with operational precision, because without precision it remains an orientalist stereotype more than a guide.
Patience in the Vietnamese business context operates on three specific levels.
Extended decision times. Significant partnership or purchase decisions pass through processes that involve several figures, require internal consultations, are evaluated with attention before being made. A negotiation that in the home market could close in a few weeks can require months in Vietnam. Not out of inefficiency — out of a cultural dynamic that values the considered decision over the rapid decision. Artificially compressing the times doesn't produce faster decisions. It produces decisions not to proceed, because the pressure communicates poor understanding of the context.
Progressive building of trust. The commercial relationship is built in concentric circles: first the seriousness of the counterpart is verified, then their reliability over time, then the solidity of the commitments made. Each of these circles requires time to be crossed. A Vietnamese partner who after three meetings hasn't yet made commitment decisions isn't wasting time — they're doing their evaluation work. Accelerating this process is almost always counterproductive.
Tolerance for ambiguity. Not all questions receive immediate answers, and not all situations are clarified right away. The widespread expectation of "defining everything before proceeding" can be perceived as anxious or intrusive. Vietnamese culture tends to leave some dimensions open, to return to questions several times from different angles, to accept that decisions mature rather than being forced. Adapting to this register requires specific practice.
The typical error isn't lacking patience — it's having tactical patience (enduring the long times hoping they conclude) rather than strategic patience (recognizing that the long times are part of the process, not a hitch in it). The difference is perceptible by the counterpart: those who endure with effort involuntarily communicate their underlying haste, even when they try to mask it.
Indirect communication, described without orientalism
The other big theme of the blogs on Vietnam is indirect communication. Here too it's worth articulating with precision, because the generic version is useless for those who have to operate on the ground.
Vietnamese communication operates on a principle that could be articulated thus: explicit clarity isn't the principal value, the preservation of relational harmony is. When the two values come into conflict, the second prevails.
This translates into specific practices that it's useful to recognize.
The "no" is rarely explicit. A Vietnamese partner who isn't interested in a proposal rarely says it directly. They communicate their disinterest through subtler signals: repeated postponements of meetings, vague answers to specific questions, changes of subject when you return to the theme, formulations like "we'll see", "we'll study it", "we'll think about it", "it's interesting but...". For someone accustomed to explicit "no"s, understanding these signals requires practice. Insisting by asking "yes or no?" doesn't produce greater clarity — it produces discomfort and often closes the conversation.
Direct criticisms are avoided. Expressing disagreement or criticism directly is considered rude and potentially offensive. When a Vietnamese person has a criticism to formulate, they modulate it: they present it as a doubt, attribute it to "someone else" who might think so, surround it with reassurances that soften its impact. Someone who presents direct criticisms to their counterpart — even with constructive intentions — can be perceived as aggressive or disrespectful.
Silence has meaning. Prolonged pauses in conversation aren't empty spaces to fill. They can indicate reflection, doubt, disagreement that isn't expressed directly, consideration of how to respond appropriately. There's a tendency to fill silences with additional conversation, and in doing so one loses precious information about the state of the conversation.
"Face" (mặt) is an operational value. Making a Vietnamese counterpart lose "face" — publicly contradicting them, embarrassing them, exposing them to an unpleasant situation — is an error that produces long-term damage in the relationship. Even when you're right, even when the point is important, the way you manage a disagreement or a correction counts as much as the content. Criticisms or corrections are made in private, with modulation, in a way that the counterpart can accept them without feeling diminished.
The smile has different functions from the ones you're used to. In Vietnam, as in other Southeast Asian countries, the smile can communicate different things depending on the context: cordiality (as you'd expect), but also discomfort, embarrassment, apology, uncertainty. A Vietnamese person who smiles while communicating something apparently positive may actually be communicating something different. Reading the smile in context, and not as a univocal signal of approval, is a competence that develops with exposure.
Hierarchy, and why it counts differently from how people think
The observation that Vietnam has a hierarchical culture influenced by Confucianism appears in all the blogs. It's true. But the way hierarchy operates in the Vietnamese business context has specifics that deserve attention.
The hierarchy is clear but fluid. Vietnamese companies have formal structures with defined roles, but the real decision-making dynamic can be more articulated. Decisions pass through the formal top, but are often prepared by technical or managerial figures who have substantial influence. Understanding who these intermediate figures are is as important as identifying the formal decision-maker.
Age has a weight that the young don't always recognize. Authority in Vietnamese relationships is linked also to age seniority, not only to the role. A Vietnamese executive older than the foreign counterpart expects deference not only for their role but also for their age. Sending a very young executive to a first meeting in front of an older Vietnamese leader can be perceived as a signal of little respect, regardless of the technical competences of the young one.
The family hierarchy intertwines with the corporate one. Many medium-sized Vietnamese companies have a family structure, and business decisions intertwine with family dynamics more than in a European context. Recognizing who the influential brother, cousin, uncle who has a voice in the decision is can be strategically informative.
Respect for authority isn't blind. The idea that Confucian culture produces passive obedience is an orientalist simplification. Vietnamese people have their own opinions, defend them when appropriate, evaluate the quality of their counterpart. What changes compared to more egalitarian contexts is the way they express dissent or criticism — with modulation, in private, with care for the register. Not the absence of independent thought.
The specific operational practices
Greetings. The handshake is today standard practice in business contexts, particularly with foreign counterparts. It's lighter than the one you're used to and can be accompanied by a slight bow of the head. Between a man and a woman, it's advisable to wait for the woman to extend her hand first. The standard verbal greeting in formal relationships is based on the title followed by the name (in Vietnam the given name is used, not the surname, even in formal contexts — it's a practice different from most Asian countries).
Business cards. They're exchanged at the start of the meeting, with both hands. They're received with both hands, read with visible attention, kept on the table during the meeting. Having cards with one side in English and one in Vietnamese is appreciated as an investment of respect. Receiving them with one hand and slipping them away without looking is a small rudeness that's noticed.
Clothing. Conservative and well-groomed is the rule. A full suit for men in formal contexts, even if the tie can be optional depending on the sector. The climate is hot and humid for most of the year — light, quality fabrics are appreciated for care of comfort. For women, professional and sober clothing.
Meetings. They generally begin with courtesy conversation that precedes getting into the business — it isn't a preamble to abbreviate. Formal presentations are appreciated when they're clear and well structured. Documentation translated into Vietnamese, at least for the key parts, communicates investment and respect.
Schedules. Punctuality is appreciated from those who come from abroad. The Vietnamese counterpart can sometimes be less rigid, but it's a flexibility that shouldn't be replicated: arriving punctually is always the right choice. Morning meetings are often preferred to afternoons (lunch is often long, and the early afternoon is a moment of lower energy for many Vietnamese).
Business meals. They're important in the building of the relationship. Dinner is particularly significant — it's used to build the level of confidence that will allow the daytime business conversations to proceed well. Accepting the invitations is almost always the right choice. During meals, the conversation tends to be less tied to business and more to the person — questions about the family (one's own and others'), about interests, about cultural experiences are normal and expected.
Gifts. They're appreciated in appropriate contexts. Quality Italian products — wines, oils, gastronomic products, artisanal objects — are consistent gifts that communicate cultural openness. They're offered with both hands, with a small comment on the meaning. You'll receive gifts in return, to be welcomed with equal care. It's inadvisable to open gifts in the presence of whoever offered them, unless the occasion explicitly suggests it.
Alcohol. It's present in social business contexts, sometimes in quantities higher than those you're used to. The drinks during business dinners are part of the building of the relationship, and declining completely can be perceived as distance. Moderation remains important, but a minimal participation in the convivial practice is appreciated.
Negotiation, the Vietnamese way
Negotiations in Vietnam follow specific rhythms and logics. It's worth articulating them.
The times are significantly longer than the European ones. A significant partnership or supply negotiation can require months of meetings and conversations before arriving at a formalization. Planning sales cycles with these timeframes from the start is the basis.
Initial positions tend to be stable. Vietnamese counterparts don't always arrive with exaggerated positions to modulate in the negotiation — the initial positions are often closer to those considered reasonable. Insisting on significant discounts compared to the first indications can be perceived as a lack of respect rather than as normal negotiation.
Decisions are rarely made in the meeting. Unlike contexts where the concluding meeting produces the decision, in Vietnam the meeting is often a step of the decision-making process that completes afterward, in internal consultations. Expecting a definitive "yes" at the end of the meeting is almost always premature.
The written formalization is important. Once the substantial agreements are reached, formalizing them in writing with care is appreciated. Clear, detailed, bilingual contracts (English and Vietnamese), with explicit provision of the scenarios for managing any problems, are standard. Local legal consulting is almost always indispensable for significant contracts.
Relationships with local authorities count. For operations that require authorizations, licenses, specific permits, the relationship with local authorities is part of the work. Having reliable local partners who manage this dimension is almost always necessary.
The manufacturing dimension and direct investment
For many Italian companies, Vietnam isn't only an outlet market — it's also a destination for manufacturing investment or production outsourcing. In recent years the phenomenon of nearshoring/friendshoring relative to China has significantly increased interest in Vietnam as an alternative production platform.
The Italian companies that have structured production presences in Vietnam have done so for various reasons: competitive labor cost (even if rising), a young and relatively trained workforce, a strategic geographic position to serve Southeast Asia and the Pacific, favorable commercial agreements, relative political stability compared to other countries in the area. Planning a manufacturing investment in Vietnam is specialist material that deserves expert support — it isn't an activity you improvise, and errors in the setup phase can be costly.
What AI tools have changed for those operating in Vietnam
Some relevant operational changes deserve to be named.
Vietnamese translation has improved significantly. For years, working with documentation in Vietnamese required dedicated translators, with significant costs and times. Contemporary neural tools, integrated with LLMs for contextual review, produce professional-quality translations in rapid times. A final native-speaker review remains advisable for contractual or highly sensitive documents, but the base level is today much more accessible.
Specific cultural preparation is within everyone's reach. Before important meetings, it's today possible to build detailed briefings on the specific Vietnamese context by sector, region, type of counterpart. For companies that operate in Vietnam frequently but without a structured dimension of local representation, it's a level of preparation that produces real competitive advantages.
Competitive-landscape analysis is accessible. Understanding who the main players in a specific sector in Vietnam are, what their positionings are, how international competitors are moving in the area, is an activity that today is managed in days with AI tools. For Italian SMEs, accessing this level of intelligence was unthinkable until recently.
Managing asynchronous relationships is facilitated. The time-zone difference between Italy and Vietnam (five or six hours depending on the period) can be managed better with AI tools that synthesize meetings, translate communications, prepare initial responses to messages received outside hours.
The dimension of personal relationships, of physical presence on the ground, of building trust with specific counterparts, remains human — and indispensable. No AI tool replaces repeated trips, shared dinners, informal conversations, direct exposure to the local culture. But the support available to facilitate and accelerate these activities has grown significantly.
Vietnam is one of the markets with the greatest potential in Southeast Asia for Italian companies. The structural economic growth, the young population in a phase of urbanization, the strategic geographic position, the favorable commercial agreements with the European Union, the openness to foreign investment compose a picture of opportunity that many Italian companies are still underestimating.
Operating well in Vietnam requires, however, a specific cultural investment. It isn't enough to treat it as "smaller China" or as "generic Asia." It requires recognizing the historical, cultural, linguistic, political specifics of the country, and adapting your commercial approach accordingly. It requires strategic patience, not just tactical. It requires attention to indirect communication, to the system of hierarchies, to the progressive building of trust. It requires an investment of time that produces returns in the medium term, not the short.
The Italian companies that have built lasting positions in Vietnam have done so by investing people on the ground, traveling frequently, maintaining continuity in the relationship with Vietnamese partners even when the immediate opportunities were limited, building a progressive presence that then consolidated into market positions. The companies that attempted short-term approaches, applying European commercial rhythms to a context that operates with other times, generally obtained limited results and withdrew, erroneously concluding that "the market wasn't ready."
The market is ready. What's often not ready is the company that approaches it without the mental and operational disposition that the context requires.