Introduction
The cultural environment of Vietnam is quite different as compared to other countries. Investigating or examining the culture of a country is necessary to derive several insights and make the best investment decision. Business expansion needs the appropriate cultural integration in this contemporary business era. Therefore, the analysis of the cultural environment of the county seems meaningful.
Describe The Cultural Environment of Vietnam, Using Hall’s Framework, And Trompenaars’ Framework.
Hall’s Framework
The Hall’s framework includes several cultural factors. These factors are overtones of messages, the locus of control, non-verbal communication, expression of reaction, cohesion and group separation, people bonding, level of commitments, and flexibility of the time. In the high or low context culture, these factors are to be integrated (Hall).
The overtones of the message come under the low context of the culture. People in this country usually contain simple language. There is no visibility of metaphor. Usually, communication among people in this region is simple and clear. In the culture of Vietnam, the locus of control also comes in the low context of culture. People usually think that the reason for failure is due to the interventions of others. For example, the Vietnam War has created a perception in the country, as they think the damage has been done by other countries. People like to depict verbal communication, as they like to meet people, conduct meetings or gatherings, and share their feelings and thoughts in a lighter manner. It falls under low context culture as well. It is a fact that people contain inward reactions. People do not like to reveal anything. Groups of people seem introverted. From the perspective of the business, people like to negotiate transactions. However, in transactions, meaningful insights are not revealed to gain the benefit. Elders in this country are always respected. It portrays the strong family bonding or family culture. This strong distinction indicates the high context culture. People are loyal when working in different groups or teams. The remarkable group or people bonding is the high context culture, and it is in the best interest of any business (Pike). Interestingly, due to strong family commitments or bonding, people prefer the looming term family relations over different tasks. People are emotional regarding relationships, and they are always ready to compromise different things. Regarding the time flexibility, people come under the low context culture. They organize the time effectively and try to make the output, which is to be generally accepted in society.
Trompenaar’s Framework
When comparing the Universalism with Particularism, it has been revealed that Vietnam practices the Particularism. For instance, people are loyal to their families and relationships. They usually find different ways to apply different ideas. Especially in the decision-making process, people demonstrate some key ethical considerations. An individual in this region likes to gain higher status by practically imposing ideas. The element of communitarianism is quite visible in this culture (Zhao). People like to become an important part of groups. It has been observed that people spontaneously depict emotions. Trompenaar’s Framework tells that Vietnam contains the diffuse culture. People are formal and want to keep their privacy. Vietnam is an achievement-oriented culture, as people usually assess their performance to become the prominent contributor of the final output or product. Vietnamese culture is Sequential. Time is money for people, and they organize the time effectively. The influence of the environment is visible. People like to adopt different things to integrate with the external environment. They do not lie to change many things (Global Project Management.Org).
Discuss Challenges and Opportunities for American Investors Posed by the Cultural Environment of Vietnam
Well, the big challenge for American investors is the different or unique Vietnam culture as compared to the western culture. For Instance, people are optimistic, but limited regarding the change process. Maintaining or handling the internal direction can be different for new businesses when dealing with the local workforce. Another challenge for American investors is to sustain the western corporate culture in this country due to people’s intentions. The business cannot afford compromises to work due to family relationships (Feline Legal).
Based On the Challenges and Opportunities You Have Identified Through Your Research, Formulate Two Recommendations, With Your Supporting Arguments, To an American Investor to Successfully Navigate the Country’s Cultural Environment.
To eliminate these challenges, there are two recommendations for American investors.
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First Recommendation
When entering Vietnam, it is necessary to target the specific group of people instead of the individual customer. People like to live and emerge in groups, and the intention should be to make or design a product or service that can be generally accepted. Some people are certain of their cultural values, and the best option is to contain the localization to target groups in this country.
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Second Recommendation
American investors should contain a merger and acquisition or strategic alliance with a local firm. It can reduce the risk and help to align with market need. Sharing the culture with the local company is a good approach to make business outputs reliable, approachable and acceptable. Also, it is a good and easy way to integrate with the unique culture of Vietnam.
Conclusion
In the end, it is to conclude that the business entry for American investors is not difficult. However, some thoughtful considerations, after this comprehensive cultural analysis, are required to make the entry successful. Hall and Trompenaar’s framework helped to derive several cultural insights, and definitely, it can help to make effective business decisions.
Work Cited
Feline Legal. “Challenges Of Doing Business In Vietnam.” Feline Legal. Feline Legal, 14 February 2018. Web. 16 September 2018. http://felinelegal.com/2018/02/14/challenges-of-doing-business-in-vietnam/.
Global Project Management.Org. “Trompenaars’ dimensions.” Global Project Management.Org. Global Project Management.Org, 4 August 2012. Web. 16 September 2018. http://www.globalprojectmanagement.org/index.php/global-project-management-framework/global-teams/cross-cultural-collaboration/23-trompenaars-dimensions.
Hall, Edward T. “Hall’s cultural factors.” Changing Minds.Org. Changing Minds.Org, 1 January 2018. Web. 16 September 2018. http://changingminds.org/explanations/culture/hall_culture.htm.
Pike, Matthew. “11 Things You Should Know About Vietnamese Culture.” The Culturetrip. The Culturetrip, 20 March 2018. Web. 16 September 2018. https://theculturetrip.com/asia/vietnam/articles/11-things-you-should-know-about-vietnamese-culture/.
Zhao, Vera. “5 Traditional Cultures of Vietnam.” My Odyssey Tours. My Odyssey Tours, 29 September 2017. Web. 16 September 2018. https://www.indochinaodysseytours.com/knows/traditional-cultures-of-vietnam.html.
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