1.

Introduction
The cultural values and norms of Vietnam and Australia in relation to Hofstede’s
indices are shown to be separated, especially in terms of individualism and collectivism.
Vietnam is positioned in the low side of individualism which reflects people’s inclination
to values group over self, family, and group over personal achievement. However,
Australia has a high measure of individualism which implies a culture of privacy and
self-endorsement (Koslowski, 2021). Understanding these cultural dimensions enables
managers to adapt the organizational management policies, communication channel
and bargaining styles to capture the international partners and employees more
appropriately (Seah, 2021). For instance, it is found in collectivistic culture such as
Vietnam, people tend to adjust and seek group rewards rather than individual ones
while in the individualist culture such as Australia people prefer to work individually and
will look forward to individual rewards.

2. Similarities between two cultures

Firstly, Vietnamese and Australian cultures have several similarities that promote
interpersonal as well as professional relationships. The cultures are also similar in
embracing hard work and success. Members of both societies seek to succeed in their
endeavors both in their careers and other aspects of life, and hard work is also valued
(Cheung, 2023).

Secondly, another important similarity that can be highlighted is the focus on

education and skills acquisition. Education is also valued in both countries as a
determinant of human as well as social development in the society. This emphasis on
learning and development ensures that the nation’s citizens are ready to face any
challenges in the globalized world (Vietnam and Australia promote cooperation in
education and training, 2024).

Thirdly, the two cultures have a strong sense of tradition of culture and heritage.
Vietnamese and Australian societies respect the history and tradition of their respective
countries and cultures, thus preserving their great identities. This respect for tradition
goes a long way in ensuring that cultural gains are upheld and ensures there is
togetherness within each community (Cathy, 2024).

3. Difference between two cultures

In Vietnamese culture, it is always a shared responsibility to make decisions.

Much importance is attached to conformity, and an individual is used to consulting with
other people, especially those of a higher status. This is possibly due to a collectivistic
orientation whereby maintaining order and group togetherness is valued (Tran et al.,
2020). On the other hand, Australians prefer to make individual decisions. They are
more of an individualistic nature hence more likely to arrive at a decision independently
as compared to their collectivist counterparts (Australia and Vietnam: Cross Cultural
Management, 2023).

According to Vietnamese culture, people are not encouraged to confront each

other. When disagreements occur, there is the intervention of third parties to handle the
disagreement to avoid the severing of relationships (Tran et al., 2020). Australians on
the other hand are more straightforward and assertive when dealing with conflict. They
have a preference for the direct communication style in order to solve the problem as
soon as possible without regard for an unpleasant conversation (Australia and Vietnam:
Cross Cultural Management, 2023).

Vietnamese culture embraces norms such as respect to authority and seniority in

the society. Workers are required to respect their bosses as well as adhere to the
hierarchical organizational structure. However, the Australian approach is much more
democratic. They respect authority, but they do it in the context of an equal
conversation and there is less of an emphasis on the rank and file structure (Vu &
Carmichael, 2009).

4. Implications of Global Business

Cultural intelligence is an essential factor that should be considered in the

international business environment. Knowledge of the principles of collectivism that are
inherent in the Vietnamese and the principles of individualism that prevail in Australians
enables constructive attitudes towards each other to be built. This cultural awareness
helps avoid pitfalls and encourages teamwork (The Role of Cultural Sensitivity in Global
Business, 2023).

It is also important to emphasize that management strategies need to be

adjusted according to the culture. Vietnamese employees value hierarchical
relationships and tend to obey authorities, whereas Australians prefer equal treatment.
Consequently, communication in such diverse settings entails understanding the
differences and adapting to them with the goal of making the information being
transmitted comprehensive and embracing so that the efficiency of the teams improves
(Stefanic, 2024).

Cultural differences imply a different approach to negotiations and ways of

solving conflict situations. Vietnamese may prefer negotiation that looks for the
compromise while Australians may prefer to be straight-forward in their negotiations.
The possibility of identifying and applying these approaches is beneficial for achieving
better results in negotiations and the formation of efficient cross-cultural teams, thus
providing the best results of business in the international environment (Navigating
Cultural Differences in Global Negotiations, 2024).

5. Conclusion

Overall, in using Hofstede’s cultural model to compare and contrast Vietnamese

and Australian cultures the important aspect that emerges is Individualism or
Collectivism. Although the Vietnamese culture is more collectivist and bureaucratic
where the importance is on the concordance of the group and order of the hierarchy
respectively, the Australian culture is more individualistic and egalitarian. These cultural
differences pose important implications for international organizations and business
management, calling for best practices in cross-cultural management and approaches
to mitigate conflicts. Thinking and overcoming these cultural differences allows
organizations to properly work together, and benefit from the strong points that each
culture possesses when operating in the global environment.
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