Due to the spending power of the Indonesian middle class, Indonesia is a good place to establish or expand a franchise. It is a safer alternative option to start your business.
Although the demand for a franchise business is high, the franchising regulatory is still complex. Investors need to go through bureaucratic procedures. There are some points you need to know before starting this business!

Best Possible Franchise businesses:

• Food
• Entertainment
• Coffee joints
• Beauty & Fitness
• Retail
• Digital Agencies
• Education
• Language centers!

Conditions to start the franchising business

Settle franchise agreement

• Provide prospect of an offer to franchisee 2 weeks before signing
• The prospect offer and agreement have to be in Bahasa Indonesia
• Based on Indonesian Law

Obtain a Franchise Registration Certificate (Surat Tanda Pendaftaran Waralaba/STPW)

If you want to know clearly the procedure to set up your company in Indonesia, feel free to contact us!
 

Batam is Indonesia’s first Special Economic Zone (SEZ). It locates on Straits of Melaka, the second busiest sea traffic in the world after the Strait of Hormuz in the Persian Gulf. Here are key benefits of doing business in Batam:

1. Physical infrastructure in Batam is better than in the rest of Indonesia. It is easy to move materials, equipment and finished product into or from Batam’s port and airport compared to other parts of Indonesia.
2. Basic infrastructure like electric power and water is the same as what is available in Jakarta.
3. Batam is very close to Singapore, only 20 km away. Investors can go to Singapore if the facilities are lacking in Batam only by ferry.
4. Batam is bordered by Malaysia and Singapore.
5. Batam has a one-stop policy for investment procedures. Investors can do all its business transactions through a single office. The process will not take longer than 20 working days.
6. Tax incentives offered in Batam. Most of the transaction to goods and services are free from VAT and LST but investors need to follow several administrative requirements, such as Business License from BPK, Goods need to relate to business activities and approve by the BPK, etc.
7. Batam has been a promising place for the electronics manufacturing industry. Batam has attracted many electronic industry giants, namely Sanyo, Panasonic, Siemens, Sony, and Phillips.

Interested in doing business in Batam? Contact us! 

Ramadhan is an important time in Indonesia. Ramadhan falls on April or May and ends after one month, but it is changing over the years. This month means the Holy Month where the Muslims do not eat, drink or smoke from dawn to dusk.
This month affects business in Indonesia, there are 5 points that you need to know:

Working hour

Yes, Ramadhan changes the working hours in Indonesia. Government Institutions in Indonesia have shorter business hours during Ramadhan, they open at 08:00 AM and close at 3:00 PM. For the private sector, usually, the working hours during Ramadhan change to 08:00 AM to 4:30 PM from Monday to Friday. Both private and government usually have a different break in this Holy Month. From Monday to Thursday, the break is from only 12:00 PM – 12:30 PM and for Friday is 11:30 AM to 1 PM.
As productivity might also be affected, business owners should plan well in this Holy Month. As a business owner, you should assign important tasks in the morning hours to maintain the productivity of the workers.

Tunjangan Hari Raya (THR)

Tunjangan Hari Raya is the obligatory religious holiday allowance that regulated by the Indonesian government. In Ramadhan, employees will receive their 13th salary or called THR. The THR amount is a one-time salary and should be paid at least seven days before the beginning of holidays. It is very important to note that if the employer in Indonesia cannot pay THR, they will have to pay a penalty of 5% for the delay of the THR payment.

The importance of Buka Bersama – to break the fast together

Buka Bersama or break the fast together is a tradition for many Indonesians to arrange meet-ups. Mostly this is the time where they they create College or High School Reunion. This is also a very ideal time to build relationships with your Indonesian colleagues, business partners or clients. To show your respect to the relationship. Usually, companies hold Buka Bersama for its employees to bond and share the togetherness.

Hari Raya Idul Fitri

This is the peak of Holy Month, where Muslims celebrate the end of it with praying and visiting families. In Indonesia, there will be two official holidays and also official collective leave from Government. So, in total, a full week off for offices and institutions can be expected.

The perfect time to hire in Indonesia

After receiving their 13th salary, many Indonesians are eager to change jobs. This is the perfect time to bring new talent to do recruitment campaign and bring new talent to your company.
If you want to know clearly the procedure to set up your company in Indonesia, contact us!

Vietnam Visa Online

Some nationalities need a visa in advance for all visits, some don't. As of January 2019, citizens from 24 countries actually have a visa exemption for 15 days. If your visit to Vietnam is brief, you may not need to bother with a visa at all! However, the list of exemptions can change, so check with the official authorities in your country before you go.
Those whose country is not in the list of exemptions, until recently, there have been two methods for you to apply for Vietnam visa online: a Visa on Arrival (VOA) via online visa agents; or an e-visa.
Regardless of which method you use, your passport must have at least six month's worth of validity left to receive a visa for Vietnam.

Vietnam E-Visa System

Now, citizens from 80 countries (including the United States, Canada, and European Union) can apply online for an e-visa. As usual when applying for a travel visa, this has to be done before you land in Vietnam. Without proof you'll be allowed into Vietnam upon arrival, your airline probably won't even allow you to board the plane.
List of 80 countries can apply for vietnam e-visa
https://evisa.xuatnhapcanh.gov.vn/documents/20181/117155/Vietnam-Evisa-nation-list.pdf//21e0f88f-d8a0-48b8-bfdb-a0f82b0853e2
To apply for your e-visa to Vietnam, you can click here:
https://evisa.xuatnhapcanh.gov.vn/en_US/web/guest/trang-chu-ttdt
Vietnam implemented an e-visa system on February 1, 2017. Although a little buggy at first, the new system has greatly simplified the process of getting a visa for Vietnam.
You'll need a scan/digital photo of your passport as well as a recent, digital photo (4 x 6 cm) of yourself on a neutral background (no hats or glasses). After uploading images, you'll pay the US $25 fee online. Three days later, if all goes well, you'll receive an email with your e-visa attached. Print this and bring it with you to Vietnam!

However, tourists who want to apply for Vietnam e-visa should also take note on these issues:

• There have been reports of visitors being deported due to incorrect details (such as wrong date of birth or misspelt names) on the online application form. If you do apply for an e-visa, double-check that all the information you provide is 100% accurate.
• Many fake e-visa websites have popped up. These fraudulent sites claim to be official but are actually involved with identity-theft rings. Ensure you are applying on the official government e-visa website (the domain ends with gov.vn); don't trust search engine results or the ads at the top.

Vietnam Visa on Arrival

Before the e-visa system was rolled out, the most common way for travelers to get a visa for Vietnam was to first apply online for a Visa Approval Letter through a third-party processing agency. This is still an option if you are having trouble applying for an e-visa.
The Visa Approval Letter is not to be confused with an e-visa; these official letters are issued by private companies rather than the Vietnamese government and do not guarantee entry into the country.
The visa on arrival only works for arriving in one of the major international airports: Saigon (HCMC), Hanoi, Nha Trang, Da Nang etc. If crossing overland into Vietnam from a neighboring country, you must have already arranged a visa either online or from an embassy.

The process of obtaining a visa on arrival for Vietnam is as follows:

Step 1: Apply for an Approval Letter Online

Travel agencies charge around US $20 (payable via credit card) to process your online application; processing time usually takes 2–3 working days, or you can pay more for rush service.
Applying for a stay longer than the standard 30-day visa requires more time (7-10 working days) to process. On rare occasions, the government may ask for more information such as a scan of your passport. The travel agency handles all communication with you, but a request for more information will certainly delay your approval processing. Err on the side of caution—start apply for Vietnam visa well in advance of your flight date.
There are many visa agents, but there are some inefficient cut-priced operators out there. It's recommended to stick to well-established companies; the following two are professional and efficient:
Vietnam Visa Choice (www.vietnamvisachoice.com): Online support from native English-speakers. This agency also guarantees your visa will be issued within the time specified.
Vietnam Visa Center (www.vietnamvisacenter.org): Competent all-rounder with helpful staff well briefed on the latest visa situation. Offers a two-hour express service for last-minute trips.

Step 2: Print Your Approval Letter

Once approved, the travel agency will email you an image file of the scanned approval letter which must be printed clearly and legibly. Print a couple of copies just to be safe.
Don't be surprised if you see lots of other travelers' names on your approval letter—it's normal for your name to just be included on a list of approvals for that day!

Step 3: Book your flight

If you haven't already booked your flight to Vietnam, do so after receiving your visa approval letter. Flights can be booked without proof of visa, however, you'll need to show proof of a visa or the printed approval letter before being allowed to board your flight.

Step 4: Arrive in Vietnam

Upon arrival, you should approach the visa-on-arrival window to request the visa application form. They may ask for your passport, Visa Approval Letter, and passport photo(s) to expedite processing as you complete the visa paperwork in the waiting area. Write down essential information such as your passport number, issue date, and expiration date before handing it over.
Two passport photos are officially required, but the office may only ask for one; these should loosely conform to the official size of 4 x 6 centimeters. If you do not have photos that meet the requirements, some airports have kiosks where you can take them for a small fee.
You will take a seat to complete the short-but-confusing application form then present it at the window. Once your name is called, you'll receive your passport with a one-page, Vietnam visa sticker inside. Depending on the queue, the entire process takes around 20 minutes.

Step 5: Pay the Visa Fee

You will have to pay a visa-on-arrival fee when presenting your paperwork. For a 30-day, single-entry visa on arrival, the fee is typically US $25; paying the exact amount with U.S. dollars is preferred, otherwise you may be issued change in the local currency (subject to a bad exchange rate). This is separate from the fee paid to an agency for the approval letter.
After paying at the window, a visa will then be added to your passport and you are allowed to enter Vietnam.
Thanks to the advantage of Technology, foreign tourists who want to apply for Vietnam visa now no longer have to directly contact Vietnamese embassies and consulates around the world, which is normally more costly and time-consuming.
If you want to know clearly the procedure to apply for Vietnam visa online please contact us or email to info@viettonkin.com.vn

10 Challenges of Doing Business in Vietnam

Vietnam is an ideal place in Southeast Asia to expand business thanks to stable politics, favorable economic conditions, a young population and an increasing middle class. Vietnam is a country with a strong Vietnamese entrepreneurial spirit from boys and hotel luggage workers to businesses. These are very positive signs and we believe that this Vietnamese entrepreneurial spirit will spread to other countries in Asia.

Vietnam has changed dramatically and attracted many foreign investors when many multinational corporations began to set up offices. In the past decade, despite the difficulties, Vietnam has achieved positive economic indicators, especially after 2009, when the economy developed strongly and by 2015, the economic growth rate was 6.7%.
Vietnam has a stable economy, positive political conditions and low competitive tax rates. Besides, the Government of Vietnam always pays great attention to reforming administrative procedures to create conditions for domestic and foreign businesses to operate smoothly. Vietnam persistently attracts green and sustainable development investment with high levels of grey matter. It encourages investments in manufacturing technology projects and investments in high technology, biotechnology, health and education.
However, in doing business in Vietnam, there will be many obstacles,therefore to help domestic and foreign businesses, we will list the Top 10 challenges of doing business in Vietnam so that companies can avoid unnecessary risks and problems

Here are the Top 10 challenges of doing business in Vietnam

1.    Legal considerations

As a result of entering into numerous international free trade agreements, Vietnam has reformed its domestic legislation, although there are still inconsistencies in some areas.

2.    Intellectual Property Rights (IPR)

Vietnam has regulations in place to protect IPR, but the enforcement is weak. You must take the necessary measures to protect your IP before exporting. If faced with infringement, you must work with the relevant inspectorates in various ministries.
IPR abuse remains a problem in Vietnam and can be a deterrent to UK companies wanting to do business in the country. However, Vietnam is taking steps to address the problem by enacting legislation that protects intellectual property rights, including copyright, industrial property and plant varieties. The National Office of Industrial Property of Vietnam (NoIP) is the authority responsible for registering intellectual property. Foreign firms that wish to register their intellectual ownership need to file an application via an authorised agent who can transfer their application to NoIP.

3.    Bribery and Corruption

Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or a Scottish partnership, to bribe anywhere in the world.
In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.
Corrupt practices are widespread in Vietnam, which has ranked consistently low in Transparency International’s Corruption Perceptions Index for several years (112th out of 168 countries in 2015). Corruption remains an issue in Vietnam. Anyone doing business in the country is likely to encounter, or hear of corruption in one form or another. Practices such as facilitation payments, bribes and giving and receiving expensive gifts in order to develop business relationships are still a problem in certain places.
The Government has proclaimed its commitment to anti-corruption and taken a range of concrete actions, including adopting and improving anti-corruption laws, developing anti-corruption strategies, strengthening relevant institutions and ratifying the UN Convention against Corruption (UNCAC), but it has been difficult to translate these policies into effective practice. Prevention and enforcement activity has been weak. Against this, analytical tools such as the UN’s Public Administration Performance Index shows significant variations in perceived levels of corruption.
The Advice to companies encountering corruption is simple – do not get involved. Not only are there issues of business integrity to bear in mind, but of course it is also illegal. Invariably, corruption is related to the lack of professionalism and control, all of which are damaging to long-term business. A number of foreign companies have managed to do business successfully in Vietnam while staying clean – this often involves making clear from the outset that they have zero tolerance for corruption.

4. Paying Taxes

There are a massive 32 corporate tax payments to be made each year which takes an average of 872 company hours to complete. Compared to the OECD norm of 176 and the East Asia and Pacific average of 209, taxation is one of the most burdensome processes of doing business in Vietnam.

5. Trading Across Borders

Given its strong manufacturing base and reliance on interconnectivity, trading across borders is a cheap endeavor. However, that isn’t to say the process is not complicated, and the stream of documentation required for both importing and exporting highlights that cross-border trade can be difficult at the best of times.

6. Enforcing Contracts and Resolving Insolvency

Enforcing contracts takes 400 days to complete and 34 procedures. Resolving insolvency is a far more laborious process, taking five years on average to complete and with a low recovery rate.

7. Culture

The Vietnamese believe in the teachings of the early Chinese philosopher Confucius which emphasise the importance of relationships, responsibility and obligation. Vietnam is also a collectivist country and community concerns will almost always come before business or individual needs. We have the local knowledge to help you navigate these minefields.

8. Bureaucracy and Transparency

Vietnam is a country in flux, one moving into a more globalised outlook. As such, you’ll likely still encounter a lot of bureaucracy and lack of transparency as regulations move into the modern age. Vietnam’s regulatory regimes and commercial law, and the overlapping jurisdictions of some government ministries, can result in a lack of consistency in government policies. There’s also poor corporate disclosure standards and a lack of financial transparency, which can add to challenges for due diligence and KYC.

9. Reporting and Filing (in Vietnamese)

All paperwork must be written in the Vietnamese language, and all foreign paperwork must have certified Vietnamese translations - they should be notarized or certified by courts in the home country, and then authenticated by a Vietnamese embassy. Licenses are also issued in Vietnamese.

10.  Currency

The Vietnamese dong is closely connected to the US dollar through a crawling peg, which provides exchange rate stability between trading partners. Considered one of the most stable Asian currencies, the dong has aided foreign direct investment. It’s worth noting that the government heavily regulates transactions in relation to foreign currencies, with rules on inflow generally more relaxed than those on outflow.
If you want to know clearly the procedure to apply for Vietnam visa online please contact us or email to info@viettonkin.com.vn