Indonesia vs Vietnam

Foreign investors typically set up a PT PMA (foreign-investment limited company), registered via the OSS system; sectors and minimum investment follow the investment 'positive list'. The company enables work-permit sponsorship.

Foreign investors usually set up a limited liability company; registration involves an Investment Registration Certificate and an Enterprise Registration Certificate via the provincial Department of Planning and Investment. Some sectors have foreign-ownership conditions.

Indonesian banking is modern with strong QR payments (QRIS). Foreigners generally need a valid KITAS/KITAP residency permit, proof of local address and an Indonesian phone number; a tax number (NPWP) is not required for a basic account but is increasingly requested. The OJK and Bank Indonesia regulate banks.

Vietnamese banking is modernising fast with strong mobile and QR payments. Foreigners can open accounts, usually needing a passport and often a work permit or residence card; the State Bank of Vietnam regulates banks.

Indonesia attracts foreign investment through the Ministry of Investment (BKPM / Invest Indonesia). The Positive Investment List sets which sectors are open, conditional or closed; most are open to foreign ownership. You set up a PT PMA (foreign-investment company) via the OSS system, and incentives include tax holidays and allowances.

Vietnam attracts foreign investment through the Foreign Investment Agency (Ministry of Planning and Investment). Most projects need an Investment Registration Certificate (IRC) and then an Enterprise Registration Certificate (ERC); some conditional sectors have limits. Incentives include tax holidays and industrial-zone benefits, and profits repatriate through banks.

Indonesia's taxes are run by the Directorate General of Taxes: personal income tax, corporate tax and VAT. Tax residents (183+ days) are taxed on worldwide income, with some relief for new expatriate residents.

Vietnam's taxes are run by the General Department of Taxation: personal income tax, corporate income tax and VAT. Tax residents (183+ days or a permanent residence) are taxed on worldwide income.

Foreigners need a work permit (via employer sponsorship of a foreign-worker plan, RPTKA) and a limited-stay permit (KITAS) to work in Indonesia. Immigration and the Ministry of Manpower administer the process; investor and second-home routes also exist.

Foreigners generally need a work permit plus a temporary residence card to work in Vietnam; the labour authorities issue work permits, usually via the employer. Some experts and intra-company transferees can be work-permit exempt with confirmation.

Indonesian student stays use education-related visa and limited-stay categories, commonly grouped under E30 subcategories covering basic and secondary education, higher education and exchange study. The school or university and the immigration basis must be aligned before travel. Sponsors or guarantors, admission letters, funds and passport validity vary by category and institution. Work rights are not automatic — verify the specific permission before any paid work.

Student entry to Vietnam is institution-led: secure admission first, then confirm the correct visa or temporary-residence route with your host university and coordinate documents through it. E-visas can support short entry, but degree study normally needs university sponsorship or institution-specific immigration guidance. One practical check people skip — confirm whether your programme is taught in Vietnamese, English or another language.

Entry to Indonesia depends on nationality, purpose, passport validity and which route you use — visa exemption, visa on arrival, e-visa or a visit visa category. The Directorate General of Immigration publishes the official country lists for exemption, visa on arrival and calling-visa handling, and the eVisa portal is the official online channel. Tourism permission does not authorise local employment or selling goods and services.

Vietnam's official e-visa is issued by the Immigration Department through the electronic visa system, for a maximum of 90 days, single or multiple entry. Note the portal moved: the old evisa.immigration.gov.vn site states applications shifted to evisa.gov.vn and thithucdientu.gov.vn from 11 November 2024. The e-visa covers entry and stay only — not local employment.

Indonesia grants the permanent stay permit (KITAP) after generally holding a limited-stay permit (KITAS) for a few consecutive years, or directly for spouses of Indonesians and certain investors/retirees. It lasts 5 years and is renewable, lets you live and work per its basis, and eases banking and property matters.

Vietnam’s permanent residence card (thẻ thường trú) is limited, granted mainly to those with special contributions to Vietnam, stateless persons long resident, or the spouse/child/parent of a Vietnamese citizen after several years. Most foreigners instead hold renewable temporary residence cards; permanent residence lets you stay without a visa.

Naturalization in Indonesia requires at least 5 consecutive years of residence (or 10 years in total), Indonesian-language ability, acceptance of the state ideology (Pancasila), and a clean record. Indonesia does not allow dual nationality for adults, so you must renounce your former citizenship. Applications go through the Ministry of Law & Human Rights and are decided by the President.

Naturalization in Vietnam generally requires about 5 years of residence, Vietnamese-language ability, a Vietnamese name, and lawful means of living. Vietnam follows a single-nationality principle, so applicants normally renounce their former nationality (the President may allow exceptions). Applications go through the Ministry of Justice and are granted by the President.

Indonesian employment under the Manpower Law (as amended by the Job Creation Law) sets provincial minimum wages, a 40-hour week, 12 days' annual leave, and a religious-holiday allowance (THR). Severance follows a statutory formula; BPJS covers health and employment insurance, and disputes go to the Industrial Relations Court.

Vietnamese employment under the Labour Code sets region-based minimum wages, a 48-hour week, at least 12 days' annual leave, and compulsory social, health and unemployment insurance. Written contracts are required; termination follows set grounds and notice, and disputes go through conciliation and the People's Court.

Indonesian trade clears through Customs (Bea Cukai) via the Indonesia National Single Window. Importers need an importer identification number (API) and customs access; goods are classified under the BTKI tariff for import duty plus import VAT (11%) and a PPh 22 prepaid income tax. Many goods are restricted (Lartas) and need permits.

Vietnamese trade clears through the General Department of Customs using the VNACCS/VCIS electronic system. You classify goods by HS code for import duty plus VAT (usually 10%) and, on some products, special consumption tax. Certain goods need specialized import licences; Vietnam's FTAs (EVFTA, CPTPP, RCEP) cut duty with a certificate of origin.

Indonesian trademarks are registered with the Directorate General of Intellectual Property (DGIP). Indonesia is first-to-file, so registering early matters. You file under Nice classes; the mark is published for a two-month opposition period, then substantively examined. An Indonesian trademark lasts 10 years and is renewable; Indonesia is a Madrid Protocol member.

Vietnamese trademarks are registered with the Intellectual Property Office of Viet Nam (IP Viet Nam). Vietnam is first-to-file, so registering early matters. You file under Nice classes; the mark undergoes formality and substantive examination before registration. A Vietnamese trademark lasts 10 years and is renewable; Vietnam is a Madrid Protocol member.

Indonesian hiring runs through private employers, local networks and sector recruiters, with the manpower ministry providing labour information and workforce-data services rather than a dominant job board. The structural point for foreign candidates is that a contract is only one of three layers: the employer's foreign-worker utilisation plan and your immigration category both have to line up with it before the work is lawful. A second practical point is geographic — pay, language expectations and permit practice in the large cities differ sharply from smaller provinces, so advice about Jakarta does not transfer everywhere.

Vietnam hiring runs mostly through direct employers, private platforms, recruiters and local networks rather than a dominant public job board. The structural point is that the work permit is an employer-side process with a step before it: the company normally has to get its use of foreign labour approved first, and only then files the permit — so a verbal offer from a company that has never done this is not the same as a job you can start. Working remotely for a foreign employer does not by itself create any Vietnamese status.

Indonesian salary planning has to be local: there is no single national minimum-wage figure to benchmark payroll against. Minimums are set through provincial and city or regency frameworks — UMP at provincial level and UMK at district or city level — which means Jakarta's rate cannot be treated as the national one, a substitution that is easy to make and wrong. For foreign hires, gross compensation should be coordinated with the visa basis, BPJS, withholding tax and any role-specific allowances.

Vietnam has regional minimum wages rather than one national private-sector figure — official reporting sets separate monthly minimums for Regions I to IV, so the applicable floor depends on where the work is located. A distinct trap: the public-sector base salary is a separate concept and should not be mixed with the regional private-sector minimums, though the two are often confused. Use official wage rules first, and avoid proprietary salary tables for immigration or compliance decisions.

Indonesia's main scholarships for foreigners are the KNB Scholarship (the Developing Countries Partnership scholarship, for degree study) and Darmasiswa (a non-degree program for Indonesian language, arts and culture), alongside university awards; LPDP funding is mostly for Indonesians. Explore the KNB, Darmasiswa and university sites and apply by the deadline.

Vietnam offers scholarships to international students mainly through bilateral government agreements (administered by the Vietnam International Education Department, VIED), which allocate places to partner countries, alongside individual university scholarships. Check whether an agreement covers your country, explore the VIED and university sites, and apply by the deadline.

To study in Indonesia you apply to the university, which helps arrange your study permit; you then receive a limited-stay visa (VITAS) and, after arrival, a limited-stay permit (KITAS) through immigration, with the institution as sponsor. Some programs are in English. Explore the university sites and apply by the deadline.

To study in Vietnam you apply to the university, which sponsors your student visa (DH category); after arrival you obtain a temporary residence card for the duration of your studies. Some programs are in English; many require Vietnamese, and scholarships may include a language year. Explore the university sites and apply by the deadline.

In Indonesia, foreigners cannot hold freehold title (Hak Milik). Instead, a foreigner with a residence permit can hold a 'right to use' (Hak Pakai) over a house or apartment, or take a long lease; apartments can also be held via strata title within the rules. Purchases are handled by a land-deed official (PPAT) and registered at the land office (BPN). Renting is common and flexible.

In Vietnam, land is owned by the state, so foreigners cannot own land, but they can own apartments (and some houses) with a 50-year ownership certificate (renewable), subject to quotas — broadly up to 30% of units in a condominium building and a capped share in a landed project. You need a valid visa/entry. Renting is common and flexible; ownership is recorded on a 'pink book' certificate.

Indonesia's system centres on JKN, the national health-insurance programme administered by BPJS Kesehatan, alongside public and private providers. The threshold to watch: foreign workers staying and working at least six months should check their BPJS enrolment obligations. The health ministry describes JKN as financial protection for basic health needs through a social-insurance mechanism — that word basic is why private insurance is commonly added for provider choice, evacuation or international coverage.

Vietnam combines public hospitals, private providers and social health insurance, and foreign workers under eligible labour contracts may contribute to health insurance through payroll — Vietnam Social Security states that foreign employees' compulsory insurance can include an employee health-insurance contribution. Public insurance matters, but many expatriates still hold private cover for provider choice, evacuation and international treatment. Before relying on any plan, check three things: hospital network, direct billing and language support.

Indonesia has two separate BPJS organisations, and confusing them is the main pitfall: BPJS Kesehatan runs JKN health coverage, while BPJS Ketenagakerjaan runs employment social security. The latter lists wage-recipient programmes covering employment injury, death, old-age, pension and job-loss protection. Foreign workers employed for at least six months are specifically referenced in its registration guidance. Private health, life, travel, property and liability policies stay separate, with their own exclusions and claim rules.

Vietnam's planning line runs between compulsory social and health insurance for eligible employees and private policies bought on top. Vietnam Social Security states that foreign workers with qualifying contracts participate in compulsory social insurance unless an exception applies — so the exception clause is worth checking rather than assuming either default. Private cover stays useful for exclusions, waiting periods and gaps, and employers should align insurance records with payroll, tax and work-permit records.