The socialist Republic of Vietnam is 126.500 square miles (327,500km²) located on eastern coast of the Indochina Peninsula. Vietnam is an "S" shaped nation with 1,600 mile (2,500 km) of coastline and borders to the north and west with China, Laos and Cambodia.

Vietnam is only 31 miles at its narrowest point and 373 miles at it widest, with the highest Phansipang, rising 9,550 ft. (3,160 m).

Population at about 84 million.

The longtime of development of Vietnam from the Bronze Age Dong Son culture and the Hindu Kingdom of Champa. During its long history Vietnam successfully faced many invasions by China and expanded across the Red River and Mekong Deltas. The French colonized Vietnam during the later 1800's and the Vietnamese people led by Ho Chi Minh, fought a war of independence against the French, defeating them at the battle of Dien Bien Phu in 1954. The Geneva Peace Accord of 1954 divided Vietnam into a Communist ruled North and a South backed by the U.S. The refusal of the South Vietnamese ruler Ngo Dinh Diem to allow elections led to a war between the Communist Vietcong and U.S. troops. The Vietnam War ended with U.S. troops leaving Vietnam with the fall of Saigon in 1975.  Vietnam has since grown to become a developing economy in South East Asia and a popular tourist destination, known for its history, culture and beautiful countryside, with verdant paddy fields and green hills.

Custom

Greeting: The Vietnamese generally shake hands when greeting and say goodbye. One use both hands to show respect for the individual. Bowing the head slightly while shaking hands also indicates respect. In rural areas, elderly people who do not extend their hand first for a handshake are greeted with a slight bow. Women are more inclined to bow their head slightly than to shake hands. At a meeting be sure to shake the hand of the director first. A basic greeting combined with the given name and title is (pronounced seen-chao). Classifiers for gender and level of familiarity are also combined with the greeting. The Vietnamese delighted if an international guest can properly say .

Business meeting

A meeting will usually begin by the exchange of business cards. Name cards can be presented with one or both hands and the ones received should be studied for an appropriate amount of time. Make sure to give a card to all persons present including the translators, this will ease problems with names. In a week, you can collect a dozens of of cards so we find it useful to note them with information regarding that person (ie. where you meet, with whom, etc).

Some amount of informal conversation will follow the exchange of business cards. Don't be fooled, this is really part of the meeting. Family and personal data is an important topic of conversation for the Vietnamese, It should not be taken as an invasion of one's privacy.

Traditional green tea or coffee will be offered, you should accept to be served even if you do not intend to drink it. Fruits, sweets, and cigarettes may also be offered. Although meetings are conducted in an informal atmosphere, often in run down offices, joking and casual expressions are not appreciated. Business attire is conservative but casual. Promptness is important to Vietnamese; the time stated is the time meant.

Useful tips:

• Be patient

• A tight schedule is unlikely to stay that way very long.

• Come prepared with brochures and samples to leave behind.

• The most important person will sit the middle, sit across from him/her.

• Address the people by their title ( Director, doctor, professor, etc.)

• Speak in turn, do not interrupt to ask a question, takes note.

• Speak to person directly, not to his/her interpreter.

• Avoid prolonged eye contact.

• Do not assume anything (i.e knowledge of common business terminology of practice).

• "Yes" Often means I understand rather than I agree.

• The person negotiating will rarely be the one to reject ideas without offending.

• Again, be patient.

After a successful meeting or the signing of a contract, you may invite the Vietnamese partners to a dinner. This will traditionally be very early by western standards ( around 17:30). Business dinners are usually very formal until the union has been sealed, there will be speeches and toasts. After the signing of a contract, it may turn into more of drinking contest with foreign hosts being obliged to do repeated "bottoms up" (In Vietnamese: meaning literally one hundred percent).

Names

Vietnamese names begin with the family name and are followed by a given name: for example, in the name , is the family name. Do not be surprised if you are addressed by your first name (ie. Mr. Peter or Mrs. Mary) this is the way the Vietnamese address one another as there are but few different last names. They will also add a prefix that signals their perceived relationship to the other person. These titles are family related rather than professional. Among colleagues, for example, the younger of the two might combine the given name with the title "anh", literally meaning "older brother". the prefix used for most foreigners is meaning mister.

Visiting

The Vietnamese have a very strong sense of hospitality and feel embarrassed if they can not show their guests full respect by preparing for their arrival. Therefore, it is inappropriate to visit a home without having been invited. Gifts are not required but are appreciated. Flowers, fruits, or tea may be appropriate for the hosts. Hosts also appreciate a small gift for their children or elderly parent. do not feel uncomfortable if your hosts just sit there without uttering a word. Silence is an appreciated form of communication, a way of enjoying each other's company.

Business hours

The everage work - week is 5 days, Most offices are open Monday to Friday from 08:00 to 16:00, closing at noon for one hour. Banks are usually open from 7:30 to 15:30 or form 08:30 to 16:30 with an hour break at noon. Foreign banks close at noon on Saturdays.

Official holidays

So far, the most important Vietnamese holiday is Tet - the Lunar New year - which comes in late January or early February. It is an extraordinary time with implications running far deeper than that of our traditional new year's day celebration. Tet run four days during which Vietnamese spend their time feasting and visiting family and friends, Houses are cleaned, ancestral graves are refurbished, debts are settled, and strained relationships are mended. Most shops and restaurants are closed for four days (some for a week or more) so plan accordingly. You may as well forget all business from one week before Tet and one week after.

Other official holidays are:

• January 1st New Year's day

• April 30 defeat of the South Vietnamese government in 1975.

• March 10 Lunar calendar, Vietnam national ancestor King Hung 's anniversary day.

• May 1st Labor day

• May 19, Birth of president Ho Chi Minh

• September 2nd, National day

Currency

Vietnamese currency, the Dong or VND, is broken down in notes of 200, 500, 1.000, 2.000, 5.000, 10.000, 20.000, 50.000, 100.000, 200.000, 500.000 (notes from 10.000 to 500.000 newly make with materials of polyethylene). Vietnamese currency is now made with coins of 200, 500, 1.000, 2.000, 5.000.

Exchange rate: 1 USD approximate 16.100 VND

Credit card

Visa Card, Master card and American Express is now widely accepted in Vietnam. You are feeling comfortable to pay for service in Business Center, Hotels, restaurant directly in credit card or draw cash at bank such as: ANZ Bank, Credit Lyonais, Indovina Bank, VID Bank, central Vietnam Bank or draw at any ATM systems downtown.

Economic overview

In 2006,

Economic growth rate is 8.17%.

The service sector has grown by 8.29%. Service proportion in GDP has increased as compared to 2005, accounting for 38.08% of GDP. Total phone subscribers reached 25.44 million, or 30 phones per 100 persons. The number of internet users has been about 14.5 million, accounting for 17.2% of the population. There are 3.6 million foreign tourists to Vietnam, a lower number than planned.

Export-import growth rate has been high. Export volume reached $39.6 billion, increasing 22.1% against that of 2005. 9 export items have over-$1- billion-turnover (cited in the bulletin numbered 99/TN). Export market structure has changed with the US accounting for 20% of the total export value or $7.9 billion, the EU 18% or $7.1 billion, Japan 13% or $5.1 billion. Import value in 2006 reached $44.41 billion, or an increase of 20.1%. Major import items are production materials such as paper, chemicals, plastics, cloth, computer spare-parts, machinery and equipment. Trade deficit values $4.48 billion, equivalent to 12.1% of the export value, lower than those of 2005 ($4.65 billion and 14.4%).

Investment attraction has been relatively strong: Overall social investment has increased by 19.8% against that of 2005, exceeding plan. The ratio of investment to GDP is over 40%, which is a high level. ODA commitment mounted to $4.45 billion, the highest ever. Donors have affirmed their support to Vietnam in implementing the 5-year socio-economic development program. The ratio of ODA disbursement is 101%, exceeding planed targets and higher than 2005�s. The amount of foreign direct investment (including that of newly registered and capital-increased projects) reaches $10.2 billion, or an increase of 49.1% against that of 2005. The amount of implemented FDI in 2006 reached $4.1 billion, increasing by 18% compared to 2005.

Budget revenue and expenditures: Budget revenue is 110.2% of budget estimate (with domestic revenue increasing by 103%, gains from crude oil 126%, from import-export 106.3%). Budget expenditures are 108.4% of budget estimate (expenditures for development investment increase by 105.9%, for regular items 105.6%, debt payment and aid repayment are as estimated, for salary reform costing 25.737 billion VND, or an increase of 168.9%). National budget deficit makes up for 4.98% of GDP, which is high but still in safety limit.

Consumer price index (CPI) increased 6.6%, lower than the economic growth rate and the 2005 price hike (8.4%). Highest increase is recorded in gold (27.2%) because of the world�s increasing price, food 14.1%, household utensil and equipment price 6,2%.

Job creation: 1.65 million jobs have been created, 103% against the set target. Man-power export reaches 78,850, or an increase of 3% against plan.