The vCards are actually fine … you need to adjust settings in Outlook. Here’s how:
You have to open the Outlook options, go to Advanced > International Options and then select Unicode (UTF-8) for “Preferred encoding for outgoing vCards:” option … And voila – import works!
Isn’t it obvious, that one has to set export options to setup import. For some reason Microsoft is setting the encoding to a non-standard value which is not universally supported and is out of spec according to the vCard specifications.
Another benefit in making this change is that your vCard exported from Outlook will now be compatible with just about every other email application which support vCards.
Hope this helps!