Human Resources Management Strategies of Taiwan-based Enterprises in Vietnam

2.1.1 Vietnamese Culture Understanding
In the early period, Vietnam was ruled by China almost over one thousand 
years, and then it was ruled by French colonialism over ninety years, and Japan about 
five years and American almost twenty years. Vietnamese was occupied by several 
countries for a long time so that Vietnamese culture almost shaped by blending of 
Chinese culture, French culture and the original local culture as well. Besides, 
Vietnamese culture is also partially changed over time. For instance, the original 
language which Vietnamese used as the common language is Chinese, afterward, it was 
changed to French and reformed to Vietnamese language as we are using now. 
Moreover, Vietn
amese’ foods, outfit, religion, and architecture style are combined 
between Western and Eastern style which contains French and Chinese styles. We can 
conclude that, the current culture of Vietnam is merging the traditional culture and 
impacted from the cultures of countries which ever invaded Vietnam in before.
In order to further understand the Vietnamese culture as well as societal issues, 
the researcher based on 
the Hofstede’s study, a well
-known theory in term of culture 
analyzing in which it sorted of 6 dimensions model named power distance, 
individualism, masculinity, uncertainty avoidance, long term orientation and 

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indulgence. Though those six dimensions ranking to analysis the societal culture of 
Vietnam. 
Table 2
: Hofstede’s ranking of Vi
etnam 
Source: 
https://www.hofstede-insights.com/country-comparison/vietnam/
I. Power Distance 
This dimension is considered to extent to which fairness of all individuals in 
society and reflecting the views of the culture towards that fairness. Power distance is 
identified as “
the less powerful members of institutions and organizations within a 
coun
try expect and accept that power is distributed unequally” (Hofstede’s study). A 
high power distance score indicates that people tend to accept and encourage 
bureaucracy as well as high respect for hierarchical ordering in an organization. 
Whereas, a lower power distance score expresses that people encourage complimenting 
organization structure rather than bureaucracy structure, and it stresses on personal 
responsibility. 

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Vietnam score 70, a high score on this dimension which means centralization is 
popular in Vietnam society; the hierarchical order in organization is acceptable. The 
employees avoid to conflict with their manager. The relationship between superior and 
subordinate always keeps a certain distance. For example: the subordinates are still 
performing a formal attitude toward their supervisor in the break time. 
II. Individualism 
“Individualism –
collectivism is the extent to which the self-identity of a 
society’s members depends on 
individual characteristics or the characteristics of the 
group to which the individual belongs on permanent basis and the extent to which 
individual or group interests dominate” (Thomas, & Peterson, 2015, p.45), in the other 
words, in individualist societies people are assumed to priority take care themselves 
and their direct family, while collectivist societies people supposed to look after and 
loyalty to group. 
Low score of individualism which means Vietnam is a collectivism society, 
lowly individualist and tend to in-group value, people are presumed to look after their 
organizations and their families rather than themselves. People live in a collectivist 
society avoids to offending because of leading to shame and loss of face. For example: 
Once they decide to do anything, the first consider is to their family, they care about 
their families’ permit and opinion
s, after that they will think about whether the society 
could accept or not.

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III. Masculinity 
A high score on this dimension which expressed in masculine society that 
indicates the society will be pursued by competition, achievement and success. While, 
low score on this dimension is Feminine society that indicates the assertive values in 
society are caring for others and quality of life. The quality of life in feminine society is 
expressed in the success and standing out from the crowd instead of admiring. Vietnam 
scores 40 on this dimension is considered a feminine society. People are assumed to 
“focus on “working in order to live”, 
managers strive for consensus, people value 
equality, solidarity and quality in their lives. Conflicts are resolved by compromise and 
negotiation” (Hofstede’s study)
IV. Uncertainty Avoidance 
The Uncertainty avoidance dimension describes a society deals with the facts 
that people can never be known in the future, they consider letting it happen or manage 
the future outcome. Uncertainty avoidance refers to the members of a culture feel 
threatened by ambiguity or unknown situations in the future and has offered the 
decision of avoiding. Depend on the score of this dimension that we can estimate the 
uncertainty avoidance of a society high or low. High score of uncertainty avoidance 
which means the culture are less comfortable with ambiguity facts and people in high 
level of uncertainty avoidance country are encouraged to attempt reducing or 
controlling the uncertainty and ambiguity situations through laws, rules, regulations, 

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manage, and behavioral norms. On the contrary, low score of uncertainty avoidance 
cultures that people feel relaxed to face with unknown or unstructured situations. The 
societies of low uncertainty avoidance do not rely too much on the rule oriented, and 
people are more flexible and tolerant of risk taking. 
Vietnam score 30 on this dimension which means low uncertainty avoidance. 
The attitude of people in this society is more comfortable about facing ambiguity 
situations, they believe that rely heavily on rules is not necessary, therefore, they will 
be abandoned, avoided or changed it if they are faced to uncertainty circumstances. 
V. Long Term Orientation
Long term orientation is defined as 
a society that “maintains some links with its 
own past while dealing with the challenges of the present and future” (Hofstede’
s 
study). Low score on this dimension refers to the cultures are considered in the past and 
present more important than in the future. While, high score of long term orientation is 
focused on the future. People value on persistence, perseverance and encouraged saving 
as a way to prepare for the future. 
Vietnam scores 57, which means people in this culture able to adapt tradition 
easily, and they believe that long-term orientation and prepare for the future is 
necessary. For instances, in order to feel secure for retiring later, people are tended to 
effort to work hard and save money when they are still able to work. 
VI. Indulgence 

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Indulgence 
is also called “weak control” defined as “the extent to which people 
try to control their desires and impulses, b
ased on the way they were raised” 
(Hofstede’s study). In contrast to indulgent, restrained is called “strong control” which 
means people do not put much emphasis on leisure time and control the satisfaction of 
their desires. Vietnam score of 30 on this dimension is considered restrained society; 
the culture has a tendency to suspicion and cynicism. People is restrained their desires, 
and their actions by social norms.