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This briefing focuses on Vietnam.
The goal of this presentation is to inform you on various aspects of that country,
in preparation for your upcoming investment decision.
There are many aspects of a country that may be relevant to potential investment decisions;
and the various languages of a country is the first of such issues.
Similarities and/or differences in languages can have a substantial impact on a firm’s
ability to communicate with local customers, suppliers
and even employees.
While Brasil and Vietnam have distinctly different dominant languages,
it is also true that there is a language reasonably common to both countries - English.
While it has not reached similar levels to Brasil,
the use of English in Vietnam is growing rapidly;
and indeed, English study is now obligatory in many schools in Vietnam.
A second issue which can influence a firm’s ability to conduct business in a foreign country
is the dominant religion.
Religion has a potentially powerful impact on people’s value systems,
and can influence how they behave and interact with one another.
While Brasil and Vietnam differ in terms of their dominant religions (Christianity and
Buddhism respectively);
they are remarkably similar in terms of their tolerance for, and diversity of, minority
religions within each country.
Indeed, the constitutions of both countries formally guarantee freedom of religion.
A third factor which may influence a company’s ability to conduct business in a foreign country
is the level of industrial development.
This not only influences the cost of labour in a country and the consumption patterns,
but it also arguably shapes the attitudes, values and behaviours of the population in
general.
In terms of the level of economic and industrial development,
Brasil and Vietnam are very similar.
Whether you measure it in terms of the GDP per capita,
the prominence of the service sector,
the per capita consumption of energy,
or the ownership of consumer goods such as televisions and telephone,
they both fall well behind the OECD countries
but are rapidly closing the gap.
A fourth important issue is the similarities and/or differences in the educational systems
of countries.
In Vietnam, as in Brasil, there have been recent improvements the education system,
resulting in higher literacy levels;
however, the country still faces many difficulties regarding adequate teaching materials,
infrastructure and teacher qualifications.
In both countries, millions of children are still unable to receive an adequate education.
Even for those lucky enough receive a full secondary education,
heavily contested Entrance Exams are necessary to determine who may enter University.
A fifth critical issue with respect to doing business in another country is similarities
and/or differences in the legal and political systems.
While it is true that the political and legal systems are very different between Vietnam
and Brasil,
both countries have State Constitutions with provisions for human rights;
and these constitutions serve as the source of law,
and establish the framework and principles of government and society.
Interestingly, the Vietnamese legal system shares another common attribute with Brasil,
in that they have a common origin in the French legal system.
Unfortunately, third aspect common to both countries is the wide spread level corruption
in all levels of government,
with a strong correlation between high poverty levels and corruption.
A sixth but potentially more subtle issue is similarities and/or differences in actual
business practices.
This can involve simple, but potentially embarrassing issues such as how to properly greet
people, and attitudes towards time.
While Brasil and Vietnam have many business practice differences,
there are more similarities than most people assume.
Business in Vietnam, as in Brasil, is based on personal relationships.
You may have to make several trips to Vietnam to achieve your objectives,
and Vietnamese business people prefer to establish a strong relationship before closing a deal.
Business meetings often start with personal conversations,
and this communication builds relationships that then drive negotiations and problem solving.
Also contrary to common opinion, the Vietnamese do not typically bow.
Instead a handshake is typical and Western style business suits are consider the norm
in Vietnam.
The seventh and final issue is the broader set of cultural values which are commonly
shared by a large portion of a country’s population.
Countries can vary in terms of the emphasis placed on individuality (versus conformity),
the attitudes towards uncertainty and ambiguity,
the attitudes towards authority and social inequities,
and not the least, attitudes towards how gender roles are allocated in society.
Vietnam and Brasil are surprisingly similar in term’s of cultural values.
Both countries are collectivist or concerned more with the group than with the individual.
In both countries there is strong respect for authority and hierarchy is important.
Both countries also have moderate levels of masculinity,
meaning that they both score near the middle on measures of gender equality and the role
of women in their society.
This concludes our brief presentation on Vietnam.