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The world is shrinking quickly with the advent of faster communication, transportation and
financial flows. Especially following the Second World War, international trade is booming with
greater chances are opened for businesses to expand overseas. The number of multinational
corporations in the world has increased from 30000 to more than 60000 since 1990. We can
easily find famous global brand like Gucci purse, Sony electronics or McDonalds hamburger in
other countries beside their home market. Globalization literally removes barriers between
nations to nations, staging the entire world as a theater of business. However, while global trade
is growing, global completion is intensifying, resulting in challenges for companies that they
have to carefully look for competitive advantages. One of them is understanding cultural
diversity in another targeted countries.
Before deciding whether to operate internationally, a company must understand the international
marketing culture. Because the thorough grasp of culture in this country might not work well in
another. In order to raise the awareness in cross culture issues, several internal factors which
listed on the extract must be evaluated properly. These are economic, political legal, cultural
environment. Firstly, according to Sree Rama Rao (2010) :
Economic environment represents the economic conditions in the country where the
international organization operate
. Indeed, economic environment is a wide term that also elements but the most important ones
are economic development and infrastructure. Nowadays, international companies are mostly
based in developed countries like America, England, and France. However, they are likely to
switch their aim in order to invest heavily Asia, Africa nations. The rationale for this action is if
they want to intensify their profit, approaching to developing countries is a smart move that they
can meet a huge source of potential customer. One of the clear proves is the number of luxury
brands are appeared swiftly in China. Because China is apparently the world largest population,
so its market is a lucrative cake for any company want to get into. Along with advancement in

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economic, a country physical facilities is important to be considered as a stepping stone one the
path to trade globally. For instance, Highways, airplanes, railroad or even traffic, sewer system
represent how convenience a foreign firm assesses a new marketplace. Secondly, in considering
whether to do business in a given country, a company should concern with factors such as
government bureaucracy, political stability and so on. There are some nations open friendly for
foreign investors like Thailand or Singapore while others follow their legislation in not
integrating freely like India or North Korea. Otherwise, political stability is what all foreign
firms seek for because it ensures safety opportunities to undertake fully what they need to make
profit. Gaurav Swarup - deputy managing director of Paharpur Cooling Towers Ltd stated that:
Stability. Why just big business, any business wants that. Stability is essential for the economy,
and nobody likes uncertainty.
Although there are a lot of nations have potential to invest like Venezuela or Honduras, they still
cannot control inner conflicts, parades happen. Consequently, it prevents international companies
take steps to do business there.

Thirdly, impacts of culture environment cannot be

underestimated. Each country has its own folkways, norms and taboos and they affect
significantly in consumer reactions in world markets. For example, the average French man uses
almost twice as many cosmetics and grooming aids as his wife. The Germans and the French eat
more packaged, branded spaghetti than do Italians. Kimberley Robert(n.a) said that :
In todays world, with global companies, as well as countries populated and influenced by
different religions and cultures, its important to develop good business relationships by taking
the time to learn more about the person youre doing business with
Hence, understanding culture traditions, preferences, business etiquette can help foreign
companies not only to avoid embarrassing mistakes but also to take advantage of cross- cultural
opportunities

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For investor all over the world, Vietnam is a potential marketplace to invest trade and even
develop production lines. In addition, following the increasing competition for foreign
investment in South East Asia, the Vietnamese government provides many investment
incentives. Website Vietnam Hawk Eyes comment:Doing business in an emerging country like
Vietnam is seductive for many foreigners Despite its attractiveness, obstacles coming out are
inevitable, especially problems involving culture. The first challenge foreign firms might face is
red tape. Even thought Vietnam has a political stability, trying to gain access to enter Vietnamese
market take a huge amount of time. Furthermore, undeveloped infrastructure and energy supply
is another disadvantage for foreign firms to do business well and efficient in Vietnam. The
culture gaps between foreign and Vietnamese businesses also can be noticed in labor force.
When oversea companies participate in Vietnamese market, they often get troubles in finding
high qualified workers and staff. Even they are cheap but lack of skills prevent them from
accomplish task in the best way. Like every other countries, Vietnam cultural communication
have distinctive features that foreigners should know. The difference in etiquette may be seen in
introduction. Vietnamese people often present a hand and a small bow and they dont like
hugging or kissing in Western culture. In another circumstance, foreigners tend to open gifts
immediately while they cannot see the same action with Vietnamese counterpart because they
dont have that habit.
To conclude, cultural understanding is very important when doing business in another
country. If a company wants to be successful, they need to well prepare how close and adaptive
they can be toward foreign market. Culture research is necessary in every countries including
Vietnam. Even Vietnam has its own problems that might cause difficulties. However Vietnam is
still an interesting market with a lot of potential to invest
Total words: 948

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References
1, Sree Rama Rao (December 12, 2010), International business and economic
environment [online]
Available at :
http://www.citeman.com/12757-international-business-and-economic-environment2.html
[Access at: 2 November 2012]

2, Gaurav Swarup(Jul. 31 - Aug. 13, 1999), 'Stability is essential for the economy',
Volume 16-issue 16 [e-book]
Available at : http://www.frontlineonnet.com/fl1616/16160140.htm
[Access at : 2 November , 2012]

3, Kimberly Robert (n.a), International success tips [online]

Available at: http://international-businesscenter.com/international_business_gifts_greetings.html
[Access at: 2 November , 2012]
4 Website Vienam Hawk Eye, Doing Business in Vietnam: Getting to the Real Story
posted by Vebimo ( 5 April, 2012) [online]
Available at :
http://vietnamhawkeye.com/2012/04/05/doing-business-in-vietnam-getting-to-thereal-story/
[ Access at: 2 November , 2012]