Finance, Operations & Scaling
·
20 min
Managing Cash Flow in Vietnam
The cash flow mistakes that kill profitable businesses in Vietnam — and a simple system to stay solvent.
Managing Cash Flow in Vietnam
Many businesses in Vietnam are profitable on paper but fail due to cash flow mismanagement. This is especially dangerous in the first 12 months, when revenue is unpredictable and setup costs are high.
The Vietnamese Cash Flow Calendar
Vietnam has unique seasonal cash flow patterns that every operator must plan for:
| Period | Cash flow effect | Why |
|---|---|---|
| Tết (Jan/Feb) | Revenue drop + big cash outflow | Staff bonuses (13th month), city empties for 1–2 weeks |
| February–March | Slow recovery | Post-Tết spending hangover |
| April–June | Strong period | School year, steady business cycle |
| July–August | Moderate dip | Summer heat, some expats travel |
| Q4 (Oct–Dec) | Strong growth | Year-end budgets, expat return, events |
Cash Flow Rules for Saigon Businesses
- Keep 3 months of operating expenses as cash reserve — always. This is your survival buffer for slow periods, unexpected expenses, and delayed client payments
- Separate accounts — never mix personal and business funds. This is both a legal requirement and an operational necessity
- Invoice immediately — Vietnamese B2B clients often pay 30–60 days late. Invoice on delivery and follow up at 15, 30, and 45 days
- Build a Tết fund — start setting aside 1/12 of your expected 13th month payout from January 1. Do not surprise yourself in December
Simple Cash Flow Tracking
You do not need sophisticated software. A weekly cash flow spreadsheet with:
- Cash in bank today
- Expected revenues for the next 30 days
- Committed expenses for the next 30 days
- Net cash position in 30 days
If that number ever goes negative, you have 30 days to fix it. With no tracking, you have zero days.
Cash is oxygen. A profitable business that runs out of cash is still a dead business. More Saigon ventures fail in their second year — when growth requires investment — than in their first. Plan your cash needs 6 months ahead, not 6 weeks.