Investing in Vietnam and Canada: A Cultural Analysis Report

This report examines the impact of cultural factors on global business investment, contrasting Vietnam and Canada. It highlights the advantages and disadvantages of investing in each country, considering their distinct cultural landscapes. In Vietnam, the report discusses the influence of collectivist values and the importance of cultural heritage, while in Canada, it explores the impact of individualism, social justice, and government regulations. The analysis covers how cultural differences affect business decisions, trade, and overall economic success, emphasizing the importance of understanding cultural nuances for effective international cooperation. The report references key sources to support its findings, providing a comprehensive overview of the cultural dimensions of global business investment in both developing and developed countries.

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Introduction of Global Business

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In today’s competitive business world, there is a great impact on culture due to globalisation
that consists of different language in different counties, customs, acceptance, religions,
occupations, practices and others. In business, cultural factors help in shaping decisions in
relation to investment in both developing and developed countries which affects the overall
effectiveness of companies (Perry, et al., 2015). This paper will discuss the advantages and
disadvantages of investing in Vietnam (developing country) and Canada (developed country)
within the context of cultural factors.
With the increase impact of globalization, cultural factors are regulating both positively and
negatively across the world. In terms of investing in developing countries such as Vietnam
and developed countries such as Canada, cultural factors impacts businesses and people
having both advantages and disadvantages (Tien, 2019). In Vietnam, the advantages involve
investment for the professional or disabled athletes in relation to sports facilities along with
development and protection of cultural heritage among encouraging foreign direct
investment (FDI) (Kuepper, 2019). Whereas, the disadvantage faced by the Vietnam being a
collectivist community and country shows traditional culture of the county where the
concerns such as trade will always going to be the top priority before the needs of an
individual or business. It is due to Vietnamese believed in early teachings of the Confucius, a
Chinese philosopher who emphasised on the importance of responsibility, relationships and
obligation. Therefore, it is essential to invest in cultural factors for the development of the
county and increasing business (TMF, 2019). Vietnam is a changing economy where
businesses invest in terms of cultural factors as well for their exposure along with
considering some essential risks and benefits altogether.
However, in Canada, there is an investment in terms of agreements on trade on culture
being a developed country considering both economic and social benefits. It derives beliefs
and values of Canadian people to accomplish goals altogether in relation to individualism
and businesses. The advantages of investing in their culture are people’s equality, social
justice, fairness and inclusiveness as per the governance approach (Hokkanen, 2018). The
cultural factors of Canada includes higher taxation for the promotion of wealth
redistribution, healthcare, the capital punishment abolition, the same-sex marriage
legislation and the far-right politics suppression are beneficial for the Canadian individuals
to invest in. Also, it is easy to grow business in the developed county like Canada but the

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disadvantage is the country’s sensitivity in terms of key differences where Canadians are
often more reserved and formal. Moreover, the government of Canada requires tools such
as tax measures, financial incentives, rules on foreign investments, and intellectual property
for the promotion of the country’s culture that has a significant impact on trade as well (CT,
2019).
Based on the above observations, it is concluded that cultural factors investment in both
developing country and developed country is important after the impact of globalization
overall due to cultural differences and diverse relations to gain effective cooperation and
success of the economy in terms of trade, businesses, individuals, the governments and
others.

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References
CT, 2019. Doing Business in Canada. [Online] Available at:
https://ct.wolterskluwer.com/resource-center/guides/doing-business-canada [Accessed 20
April 2020].
Hokkanen, G., 2018. Top 10 challenges of doing business in Canada. [Online] Available at:
https://www.tmf-group.com/en/news-insights/articles/2018/may/top-10-challenges-of-
doing-business-in-canada/ [Accessed 20 April 2020].
Kuepper, J., 2019. The Benefits and the Risks of Investing in Vietnam. [Online] Available at:
https://www.thebalance.com/a-guide-to-investing-in-vietnam-1979036 [Accessed 20 April
2020].
Perry, J., Chand, M. & Ring, K., 2015. Cultural influences in the decision to invest in new
ventures: an exploratory study. An International Journal of Entrepreneurial Finance, 17(3),
pp. 237-262.
Tien, N. H., 2019. Advantages and difficulties in Vietnamese-Japanese and Vietnamese-
German joint venture. International Journal of Foreign Trade and International Business,
1(2), pp. 1-4.
TMF, 2019. Top 10 challenges of doing business in Vietnam. [Online] Available at:
https://www.tmf-group.com/en/news-insights/business-culture/top-challenges-vietnam/
[Accessed 20 April 2020].