The Socialist Republic of Vietnam (SPV) is a fast growing economy in South-East Asia with 5,8 % GDP growth rate in 2014 (German Foreign Office 2015, p.1). Foreign firms became aware of Vietnam while seeking for new sales markets, cost-efficient production sites and cheap labor. Vietnam´s population is relatively young with 95% share under the age of 65 (Meyer, Tran, & Nguyen 2006, p.1). Through the economic reform “Đổi mới” Vietnam´s economy could change from centrally planed to a socialist oriented market economy (Vietnam Development Information Center 2012, p.5). Through this reform the Vietnamese market could be liberated and opened to foreign investors and companies (Edwards et al 2013, p.433) and became a favorite of foreign companies as Samsung, LG and Toyota (Vietnam Development Information Center 2012, p.6).

Doing business in Vietnam requires international firms to navigate in unfamiliar waters . (Ghemawat et al 2008, p.88). Starting business in an emerging market like Vietnam is new and risky but provides enormous potential when respecting the “rules of the game” (Peng et al 2008, p.921) quoted from (North, 1990). These rules, commonly known as institutions, determine the success and failure of firms (Peng et al 2008, p. 920). Institutions can be defined as “regulative, normative, and cognitive structures and activities that provide stability and meaning to social behavior” (Peng et al 2008, p.921) quoted from (Scott, 1995).