Adapting to multicultural environments in global business

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Operations at the Phu Nhuan District Tax Department, Ho Chi Minh City. Photo: T.D

At a seminar titled "Multicultural Environments in the Context of Global Business" within the framework of the fourth annual National Forum "Culture with Businesses" held on the afternoon of November 10, 2024, businesses and experts emphasized the impacts of multicultural environments on current business development.

Sharing perspectives from businesses in South Korea, Mr. Hong Sun, Chairman of the Korean Chamber of Commerce in Vietnam (KoCham), stated that venturing into the international market requires a spirit of daring and a commitment to high quality.

For instance, Samsung previously generated 90% of its revenue domestically within South Korea. However, after shifting its focus to becoming a multinational corporation, 95% of its revenue now comes from abroad.

Similarly, Hyundai has continuously improved its quality to become one of the world's largest automobile manufacturers.

Therefore, according to Mr. Sun, Vietnam, with its rapidly developing corporations and businesses, needs to strive to reach foreign markets. This requires using culture as a foundation for business and emphasizing learning from international partners.

Regarding Vietnamese businesses, Mr. Nguyen Van Hoi, Chairman of the Board of Directors of Binh Son Refining and Petrochemical Joint Stock Company (BSR), shared his experience with multinational cooperation. Since 1999, the refinery has collaborated with Russia.

After the Russian partner withdrew its capital, the company signed contracts with consortiums from France, Japan, and Spain, and subsequently collaborated with South Korean contractors, working with consulting firms from the UK and South Korea, along with numerous equipment suppliers.

Working in a multicultural environment requires a strong spirit of cooperation. Photo: BSR

Mr. Hoi explained that initial collaborations with international partners were challenging, often resembling "struggles" rather than "cooperation" due to differences in business culture between foreign partners and Vietnamese workers.

For example, foreign partners work with clear plans and punctuality, while Vietnamese workers demonstrate less adherence to schedules, with plans often subject to change.

When the company launched "emulation movements," the Japanese partners were unfamiliar with this concept, as they operate based on contracts, schedules, and quality. It took time and explanation for them to understand and implement such initiatives.

With these examples, BSR's leadership emphasized the importance of a strong spirit of cooperation and mutual cultural understanding when working in multicultural environments.

However, robust internal strengths, including a solid knowledge base, foreign language proficiency, and team-building activities, are especially crucial for building trust among employees and leaders, fostering interaction based on equality.

Associate Professor Dr. Nguyen Thi Bich Loan, Vice Rector of the University of Commerce, echoed this sentiment, highlighting the importance of training personnel to adapt to multicultural work environments.

Training programs should involve collaboration and input from businesses to ensure alignment with the requirements of international integration.

Furthermore, Mr. Sun emphasized the need for government support to encourage businesses to invest and cooperate with foreign partners. The vast international market presents greater challenges for small and medium-sized enterprises with limited resources.

Experts also emphasized that when investing and cooperating internationally, besides understanding the local business culture, businesses must integrate knowledge, enhance practical experience, and collaborate with organizations and consulting experts for smoother operations and compliance with international requirements.