VIETNAM NATIONAL UNIVERSITY
UNIVERSITY OF FOREIGN LANGUAGES AND INTERNATIONAL
STUDIES
ENGLISH DEPARTMENT
SIMILARITIES AND DIFFERENCES IN JAPANESE AND
VIETNAMESE BUSINESS STYLES
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF
BACHELOR OF ARTS (TEFL)
Supervisor: Phan Van Quyen,
M.A.
Student: Tran Ngoc Viet Hoai
Group: QHF10E6
i
Hanoi, May 2014
ACCEPTANCE PAGE
I hereby state that I: Tran Ngoc Viet Hoai in group 10.1.E6, being a
candidate for the degree of Bachelor of Arts (TEFL) accept the requirements
of the College relating to the retention and use of Bachelors Graduation Paper
deposited in the library.
In terms of these conditions, I agree that the origin of my paper
deposited in the library should be accessible for the purposes of study and
research, in accordance with the normal conditions established by the
librarian for the care, loan or reproduction of the paper.
TRAN NGOC VIET HOAI
5
th
May 2014
ii
ACKNOWLEDGEMENTS
I would like to express my deepest gratitude to my supervisor, M.A Phan Van
Quyen, for her useful guidance, insightful suggestions, and constant

of companies from two countries. The first part of the questionnaire
require personal information of the respondents. The second part is
composed of 6 questions designed to explore the styles companies in
Japan and Vietnam apply in daily management practices.
The results demonstrate significant similarities and differences in the
ways Japanese and Vietnamese businesspeople conduct business and run
the organizations. Some findings appear to be contrast to or difficult to
explain based on reviewed literature which proves the dynamics of
culture. The study hopes to bring helpful findings for people concern and
raise important problems for further research.
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TABLE OF CONTENT
List of tables and figures vi
PART I. INTRODUCTION 1
PART II. DEVELOPMENT 5
2.3. Research method 20
The commitment between two parties in a business deal is commonly made based on
____________? 23
Which type of negotiation style is preferred in your company? 25
Which of the following practices are acceptable in your company? 26
PART III. CONCLUSION 35
REFERENCES 37
The commitment between two parties in a business deal is commonly made based on
____________? 47
Which type of negotiation style is preferred in your company? 48
Which of the following practices are acceptable in your company? 48
v
List of tables and figures
Table 3.1. Task versus relationship in preferred types of commitment in
Japanese and Vietnamese companies 21

therefore, are likely to keep increasing.
However, high number of business interactions between two
cultures does not guarantee harmonious long – term relationship, as
Schneider in his book Managing Across Cultures states: “In every cross
– border alliance there are seeds of potential cultural conflict and
misunderstanding.” Although the cultural gap between the two
countries appears to be narrow, it is obvious many Vietnamese and
Japanese entrepreneurs encountered significant conflicts as they work
on joint ventures. Every culture embraces its own unique customs,
beliefs and values, which make it extremely for people from different
cultures to talk openly, to share opinions and to understand one another.
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A meeting called “Business Connection Seminar” held in Ho Chi
Minh City in 2013 discussing some differences in Japanese –
Vietnamese culture emphasizes the need to “bridge the gap” between
two cultures to promote cooperation. In order to do so, it is necessary
that businesspeople working in foreign countries are fully equipped
with effective cross – cultural competence which can only be achieved
by good knowledge of similarities and differences between cultures.
As a university students with previous experiences of working
with Japanese businesspeople, I realize the importance of intercultural
competence in bringing fruitful outcomes in international business
cooperation. Therefore, I decided to work on this research to discover
the similarities and differences in the way Japanese and Vietnamese
implement their business practices. I hope that the findings of the study
would effectively contribute to further studies in the field.
2. Aims of the study
The study aims at:
- Drawing the readers’ attention to the importance of cultural
differences in doing cross – border business.

underlying values people from a culture believe in, it is necessary to
research surface behaviors displayed by its people. The study,
3
therefore, focus on the analysis of basic assumptions on Japanese and
Vietnamese cultures reflected in Japanese and Vietnamese business
styles.
The research targets at Japanese people having experiences
working with Vietnamese or in Vietnamese business context and vice
versa. Both Japanese and Vietnamese participants are currently living
in Japan or Vietnam.
5. Structure of the study
As for the design of the study, it consists of three main parts:
Part I – Introduction – presents the rationale, aim, significance and
scope of the study
Part II – Development – is composed of three chapters:
Chapter 1 – Literature Review – introduces the definition of culture in
general, national culture and business culture in particular, and presents
significant characteristics of Japanese and Vietnamese cultures as well
as elements of business cultures based on the principal theoretical
concepts about business culture of Edgar H. Schein and Geert Hofstede
which function as framework for the study, and presents some previous
studies related to the topic.
Chapter 2 – Methodology – mentions the research questions, data
collection instruments, method of the study, selection of subjects, data
collection procedures and data analysis.
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Chapter 3 – Data Analysis – presents the results of the study by
comparing and contrasting the figures.
Chapter 4 – Findings and discussion – discusses the data collected in
order to answer the research questions.

down rest the underlying assumptions needing to be inferred through
interpretation. The word “assumption” indicates the concept of the
culture’s deepest level, the values that people usually take for granted and
treat as nonnegotiable. These assumptions teach members of a society
how to deal with problems of “external adaptation” (how to survive) and
“internal integration” (how to stay together). Therefore, the assumptions
help explain the reason behind its people’s behaviors, beliefs and values.
1.2. National culture and business culture
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National culture is the culture shared by citizens within the
boundary of a country. On the other hands, business culture, in other
words, corporate culture, or organizational culture, can be defined as
“the collective programming of the mind that distinguishes the members
of one organization from others” (Hofstede). In other words, national
culture refers to the shared beliefs, values and behaviors at national level
while organizational culture refers to those at organization level. The
relationship between national culture and business culture has become
the centers of debate for many researchers on business managements
around the world, and it is proved that national culture exerts significant
influences on organizational culture as its role as one of many other
factors that shape the organizational culture as personality of founder,
expectation of stakeholders, and type of technology in use. However,
Hofstede finds out that cultural differences between nations are
particularly found at the deepest level of values while cultural
differences among organizations are principally identified at the surface
level of practices. Therefore, it is necessary to investigate the deepest
level of national culture and the practices of organizational culture in
order to understand the relationship between them. The most popular
framework of cultural dimensions which influences business
organization’s behaviors is developed by Geert Hofstede including five

The index indicates the degree of tolerance a country fosters for
uncertainty and ambiguity. It is the question whether one can control
his own fate or not. In countries with high score in Uncertainty
Avoidance Index, people implement strong laws, rules, regulations and
controls in order to avoid the uncertainty. In contrast, countries with
high score in Uncertainty Avoidance Index prefer a variety of
opportunities, they readily accept changes and are opened to risk –
taking.
1.2.1.5. Long – term orientation versus short – term orientation
According to Hofstede, people from long – term orientation look
forward to future instead of longing for the past: "Long Term
Orientation stands for the fostering of virtues oriented towards future
rewards, in particular perseverance and thrift. Its opposite pole, Short
Term Orientation, stands for the fostering of virtues related to the past
and present, in particular, respect for tradition, preservation of ‘face’
and fulfilling social obligations.” (Culture’s Consequences, 2001:359).
Therefore, people of long – term orientation tend to search for
persistence and personal adaptability while people of short – term
orientation prefer quick results and stability.
1.2.2. Schein’s framework of organizational culture
According to Schein, organizational culture is “a pattern of
shared basic assumptions that the group learned as it solved its
problems of external adaptation and internal integration” (2006: 17).
External adaptation indicates the control over nature, human activity,
and the truth and reality. American culture, usually refered to as “can –
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do” culture, believes that nothing is predetermined. American
managers, hence, always try to change things or make things happen.
They initiate the action without taking time for reflection because they
believe “better to make the wrong decision than no decision.” On the

practices involve the work of the manager to “coordinate human and
nonhuman resources in order to accomplish the objectives of the
organization.” (Harris & Moran, 1983: 70). Some of the most typical
practices can be listed as decision – making, conflict managing,
negotiating, rewarding, business partner selecting, recruiting, (Ward
& Bochner, 2001). These practices reflect important attitudes towards
tasks, productivity, relationship, group functioning,
1.2.2.2. Espoused beliefs and values
Espoused beliefs and values represent strategies, goals and
philosophies adopted by the organization. The strategies, goals and
philosophies might be initially adopted by the leader of the organization
then reinforced among the members of the organization. They teach the
member what is a preferred way to solve the problems, what is
considered right, what is considered effective, Espoused beliefs and
values can be interpreted with the company’s state of mission or vision.
1.2.2.3. Basic assumptions
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Basic underlying assumptions is called “theory – in – use”, the
nonnegotiation and nondebatable assumptions that guide members of
the organization how to perceive the things around them. These
assumptions stay invariable through the time because people take them
for granted in regulating their behaviors. The assumptions are reflected
in people’s perception of external adaptation (the relationship between
human and nature, the nature of human activity, the nature of truth and
reality), internal integration (human nature, relationship with people
such as importance of task versus relationships, masculinity versus
femininity, hierarchy and individualism versus collectivism) and
linking assumptions on space, language and time. (Schneider &
Barsoux, 1997) .
2. Characteristics of Japanese and Vietnamese culture

intuition, rather than by a sharp analysis of contrasting views or by
clear – cut decisions”.
2.1.2. Strictly hierarchical structure
According to Nakane, “Japanese social groups are characterized
internally by vertical relationships, oftentimes established through
elaborate ranking systems. Once ranking is established, strong emotion
ties the hierchy together through a cultural system of loyalty from the
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bottom and paternalistic obligation from the top” (1970: 149). Because
the Japanese tend to jugde by intuition rather than by reason, their
loyalty becomes unconditional. The fact that Japanese usually work
under lifetime employment sets an excellent example for the attitude. It
is the unconditional loyalty that strengthens the hierarchical structure in
Japanese society.
However, the gap between attitudes towards ingroup and
outgroup members typical in Japanese society draws clear distinctions
within any group’s hierarchical structure. “Japanese are not only loyal
to particular groups to which they belong, but within the typical group,
a clear hiarchy exists with different members having different amounts
of status” (Nakane, 1970: 165). A Japanese, hence, would treat her
junior who has just joined the company differently from her recent
colleagues and her managers.
2.1.3. Work devotion
An old saying goes “Rome wasn’t built in a day”, and the
Japanese did not make their economic miracle by chance. According to
Ellington, work place gradually replaced home as a primary group for
many Japanese men after World War II. The Japanese white – collars
are called “samurai in suits” as they devote their time and effort
working for the sake of the company in particular and for national
prosperity in general without desires for additional payment. The

“Strong sense of community is felt by all Vietnamese” (Ellis: 85).
Heavily influenced by Confucianism, Vietnamese appreciates group
harmony and forges strong relationship with the community around
them including family, neighbors and society. Confucian classics and
ethics rooted in the country’s education system until 20
th
century
promote anti – individualisticism which teaches people to establish and
maintain positive connection with their surroundings. Moreover, wet –
rice cultivation which is adopted as main economic activity demands
cooperation in work of the people. An old saying: “one gesture of
forbearance gives you nine good things” effectively demonstrates
people’s attitude towards conflicts in group.
2.2.2. Allegiance to family
Family is considered to be the basic unit of a society, and
Confucianism educates children to value family more than the
individual, to fulfill filial piety with parents and to pay respect to the
ancestors. In Vietnam, as well as in other countries which embrace
Confucianism philosophy as China, South Korea and Japan, “life
revolves around the family”(Ellis:85). Most Vietnamese, therefore,
assign major priority on their roles and responsibilities to manage the
domestic affairs within an extended family including grandparents,
parents, and siblings: “A drop of diluted blood is better than a pond of
clean water” (Một giọt máu đào hơn ao nước lã).
2.2.3. Adaptability
According to Tran Ngoc Them, because one of the typical
characteristics of agricultural cultivation is a heavy reliance of the
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farmers on natural conditions, Vietnamese people who mainly live on
farming learn to be adaptable and flexible (Cơ sở văn hóa Việt Nam,

Japanese business cultures on the performance of Japanese companies
in compare with Idian companies based on the universal high
performance model framework. The study brings out the result that
despite the different economic environments in Japan and India, the
general factors influence the business performance in the two Asian
countries are roughly similar. Vietnam corporate culture, on the other
hands, has not received considerable concern from international
scholars but only gained domestic interest. Research have been carried
out to study busniess cultures in Vietnamese companies, and among
them stands out the thesis of Nguyen Khanh Ly Ly from Vietnam
National University which explores the subject based on the
organizational culture model developed by Edgar H. Schein and the
culture model by Geert Hofstede. Organizational culture of FPT
company (an information technology and communication in Vietnam)
was investigated using the characteristics taken from Schein and
Hofstede framework of cultures. The findings of the study present a
defintion of business cultures in the company and draw out
achievements and shortcomings of the business performance under the
influence of business culture.
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