The population of Vietnam is young: 80 percent of its 73 million people are under the age of 40. They are also well educated, with an overall literacy rate approaching 90 percent. In addition, despite two decades of communist "socialism," Vietnamese have retained a strong work ethic and an energetic sense of entrepreneurialism. Add to these facts the current low cost of labor in the country--the average annual per capita income was under $250 in 1994 and it is easy to understand why foreign businesses and investors are pouring into Vietnam.
Competing successfully in Vietnam against other foreign--mostly Asian--businesses will require that American companies make an effort to understand, respect, and, to some extent, adapt to Vietnamese culture. The purpose of this article is to provide some insights into that culture, with a focus on business and interpersonal communications.
THE IMPORTANCE OF CULTURE
Many Americans fail to see the unique set of traits and approaches they bring to international business dealings. Some of these traits are so ingrained in their psyche that they don't even realize they may differ in other cultures. Americans show they are listening respectfully, for example, by staring into the speaker's eyes as he or she talks. In much of Asia, however, including Vietnam, staring directly into a person's eyes is considered discourteous. Respect in such cultures is shown by keeping one's eyes lowered while someone in authority is speaking. Although Vietnamese who are used to dealing with