Business plan mgt 406 dr regina pumaat

Beemate JSC is a education technology startup based in Da Nang, Vietnam that aims to provide solutions to Vietnamese English language learners in the country. The company’s main product is a learning application named BeeMate which has a unique pairing structure where learners can learn in a “buddy approach” and complete a variety of exciting activities and challenges. It will begin operations once business registration certificate and tax code is granted. Moreover, it is projected to launch on the 1st month of 2024. As proved by the company’s research, there is a growing investment in the EdTech sector in Vietnam, while there is a significant population of Vietnamese learners who have reported that they learn English in various ways like in English centers or selfstudy online using YouTube or paid online courses. BeeMate application is an entrant in the online learning market. We aim to maximize this buying behavior of consumers by giving a learning solution which is easy to use and contains exciting activities to the two users. The company is headed by Mai Phan Thao Ha and with a team of specialists in different fields: Frances Summer Dy in Marketing, Hoang Ngoc Bao Phuc in Finance, Trung Vu in Sales and Customer Supports, Pham Diem in Software, and Dung Pham in Education. A technology startup such as this requires a huge investment as the operating costs and other organizational costs are equally high. The company’s retained earnings in the first year is around 20 million VND, this is the net income and the dividends for stockholders. The profit margin is 5.61% for every 100 VND and stockholders get a 4% for every share. Following this financial analysis, the startup company is deemed to be profitable in its first year of operation.

EXECUTIVE SUMMARY

Beemate JSC is a education technology start-up based in Da Nang, Vietnam thataims to provide solutions to Vietnamese English language learners in the country The company’s main product is a learning application named BeeMate which has a unique pairing structure where learners can learn in a “buddy approach” and complete a variety

of exciting activities and challenges It will begin operations once business registration certificate and tax code is granted Moreover, it is projected to launch on the 1st month

of 2024

As proved by the company’s research, there is a growing investment in the EdTech sector in Vietnam, while there is a significant population of Vietnamese learnerswho have reported that they learn English in various ways like in English centers or self-study online using YouTube or paid online courses

BeeMate application is an entrant in the online learning market We aim to

maximize this buying behavior of consumers by giving a learning solution which is easy

to use and contains exciting activities to the two users

The company is headed by Mai Phan Thao Ha and with a team of specialists in different fields: Frances Summer Dy in Marketing, Hoang Ngoc Bao Phuc in Finance, Trung Vu in Sales and Customer Supports, Pham Diem in Software, and Dung Pham in Education

A technology start-up such as this requires a huge investment as the operating costs and other organizational costs are equally high The company’s retained earnings

in the first year is around 20 million VND, this is the net income and the dividends for stockholders The profit margin is 5.61% for every 100 VND and stockholders get a 4% for every share Following this financial analysis, the start-up company is deemed to be profitable in its first year of operation

● Our Mission: To simplify the English learning approach to help students and

young people learn English, help them connect to the English learningcommunity, and reach their individual goals

● Our Vision: BeeMate will become an English learning solution that millions of

Vietnamese people trust We are committed to becoming a supportive toolthroughout the development of Vietnamese English learners

● Our Core Value: Through our innovative products and services, we create value

for our customers We grow, inspire, and motivate all those we interact with whileupholding enthusiasm through our people, altering their study ways, and boostingtheir personal study

+ Simplicity: We listen, then respond quickly We are simple but effective in

terms of results to ensure time, benefit, and cost for our clients

+ Concern: To exceed customers' expectations, we cultivate a culture that

responds to their demands or solves their problems quickly and withconsistent, long-term quality

+ Professionalism: We require our organization's morality, knowledge,

understanding, and self-development to be professional in their workwhich must have a sense of self-responsibility, social organization, andnation

The Federation of Business Information Service (FEBIS) writes in a 2022article that “Vietnam is the most dynamic Education Technology (EdTech) market

in Asia'' There is a strong investment in Vietnam’s EdTech market The rise ofEdTech in Vietnam is an indication of increased digitization and globalization.The main factor driving up the market is the high numbers of internet use andsmart devices in the country Over 30 million dollars is the estimated totalinvestment into edTech in Vietnam in 2022 EdTech continues to be among thetop 4 industries that investors are interested in and pouring money into Thehighlights of 2022 include:

+ The debut of the EdTech YearBook at Techfest's EdTech Village, whichranks several EdTech products in various fields

+ Numerous EdTech investment deals (11+ deals announced and dozensmore undisclosed)

+ The formation of several educational technology alliances

+ Stronger market penetration by foreign entities into Vietnam's EdTechmarket

Nevertheless, this growth rate is incredibly slow for online education With

a compound annual growth rate of 44.3%, Vietnam is one of the top 10 marketsfor online education worldwide, according to Tech in Asia Research This market

is anticipated to expand at a rate of roughly 20.2% from 2019 to 2023, reaching avalue of $3 billion USD in 2023, which opens an opportunity for our productBeeMate

Net Income ( NI ) = sales revenue - Tax - Operation Espenses-

Interest=1.055.858.750-263.963.438-689.935.000-42.720.000= 59.235.313

+ NI > 0 indicates that the business is experiencing a net income

Retained Earning ( RE ) = NI - Les Dividend = 59.235.313-40.000.000= 19.235.313 +

+ Dividend rate is 4%/share, with 100,000 shares, the amount that the enterprise must pay to shareholders is VND 40,000,000

Profit Margin = Net Income / sales Revenue = 59.235.313 / 1.055.853.750 = 5.61%

+This indicator shows that for every 100 dong in revenue, the business earns 5.61 dong

Following this information, BeeMate’s customers will be segmented byage, education level, geographic location, and occupation The backgroundinformation is as follows:

Educational Level High school, University & higherGeographic Location North, central, south regionsOccupation Students, professional workersLearning Goals Ielts , Toeic, Cambridge, etc…

1.1.2 Competitors

Well-known offline centers

● Ha Noi city: Jaxtina, VUS, Regal Edu, DOL English, ECO English

● Ho Chi Minh city: EduPath, Apollo English, ILA Viet Nam, Newsky,

IELTS FIGHTER

● Da Nang city: IRIS, AMA, ISEC, AMEC, PoPoDoo

Online English learning applications

● Ecoach: a virtual learning platform offering teammates and teacherscompleting interesting and creative challenges/tournaments

● ELSA Speak: use of AI technology in speech recognition as well as acting

as a personal virtual pronunciation coach that gives instant and precisefeedback on every sound you make

● Duolingo: an application with different challenges and levels to completeproviding an enjoyable game-like experience; users can compete withother users to get the highest score and receive in-app prizes and rewards

● Preply: hire expert English tutors with verified profiles at an affordableprice; focus on skills and learn anytime

governmental organizations (NGOs) to cooperate in promoting English inVietnam.

The Government of Vietnam clearly identifies education as one of thepriority areas; therefore, businesses investing in this sector can enjoy a 10% taxreduction during their operation, benefiting from 4 years of corporate income tax(CIT) exemption and 5 years of 50% CIT reduction

1.1.4 Social-Cultural

Vietnamese society and culture is rooted in Confucianism, alwaysattaching great importance to education as the key to success Vietnameseparents are willing to put in great efforts to ensure their children get a goodeducation

For the Vietnamese workforce, additional attributes, including languageproficiency and soft skills, are highly valued due to their ability to increaseindividual employability

Additionally, Vietnam actively integrates into the global economy by joiningthe WTO in 2007 and having free trade agreements with other countries Thiscontributes to the rapid increase in demand for language training, because bothdomestic and international companies consider applicants to have a higher level

of foreign language proficiency

1.1.6 Technology

According to the latest data, Vietnam's population currently has nearly 100million people, including 45.7% people of working age and another 38% ofpeople aged 0-24 who have a significant need for learning languages, especiallyEnglish Along with that, the emerging middle class, accounting for 13% of thepopulation, is expected to continue to increase (World Bank Vietnam, 2020),

thereby creating a strong purchasing power in the market as this market isdedicated to studying abroad and traveling internationally

The number of people using the Internet accounts for 70.3% of thepopulation, with an average duration of 6 hours 47 minutes Vietnam is ranked10th worldwide with 61.37 million phone devices sold

This PESTEL analysis shows that the market in Vietnam is ripe fordevelopment and a new entrant in the education technology industry is awelcome addition Harnessing the potential of Vietnam by tapping into the up andcoming technology sector of the country makes a good environment for theteam’s idea to launch an educational start-up

1.2 Products/services

BeeMate is an app that pairs two learners based on their ages, learninggoals, educational levels and other qualifications After that, the two userscommit an amount of money to complete the upcoming 1-month motivationaljourney to learn English For 1 month, the two will receive interesting, creativeand unexpected challenges from BeeMate The two users will spend at least 30minutes a day completing English training challenges If the pair does notparticipate fully daily, their commitment will be deducted, which will in turnmotivate them more In appendix A, the user interface of BeeMate is shown

BeeMate app is currently in MVP (Minimum Viable Product) development,which means that the features of the product are enough to be usable by early-stage users Moreover, the BeeMate app includes the following services:

Products/services Features Sample Product

Inclusion (Activities &

Challenges)

Price (x1000)

1-Week Trial (7 days) -limited access to

BeeMate English activities and challenges-no commitment

-Word Games-Language Quizzes

FREE / 0.00

fee-match with a Matie

1-Month English (30

days)

-match with a Matie around user’s city location (100 km radius)

-access challenges anytime with your Matie

-failure to complete challenges for 1 day is -1 USD from the commitment fee-progress trackingfeature (streak)-return to missed challenges

****

-Buddy sessionSkill covered: Listening-Listen to snippets of popular music by international artists-BeeTwister

Skill covered:

Speaking-Mates will practice tongue twisters and take turns reciting them

-Joke ExchangeSkill covered: Reading

& Writing-Write jokes about specific topics such as food, animal or

hobbies

***

200VND/month

6-month English

Journey

****

-unlock the Radius (match with a Matie in thewhole country of VietNam region)*

***

-more complex Englishwriting challenges*

1140 VND/6 months(5%) discount

-unlock TOEIC and IELTS courses.

***

-English certification pathway

2160 VND/12months(10%) discount

1.2 Customer demographic

2 groups of customers:

Students Workers or Professional

Location all Vietnam region all Vietnam region

Marital Status No required marital status

Income level -Under VND1,000,000/

month

-Under VND10,000,000/monthSocial class and

self-Education -High school and

university level

-Graduated and still demanding to learn moreInternet Usage Using social media

from 4 hours and more frequently

Using social media from 4 hours and more, but occasionally

Travel Habits Everyone can use the app as long as there is an

internet connection available; free to access anywhere, anytime

Ethnicity and Cultural

Background

No discrimination in ethnicity and cultural background

Interests and Hobbies Users who are interested in English learning and

improving themselvesBuying Behavior Willing to pay more if the app offers more interesting

games and challenges; willing to gain international certificates

1.3 Competition and competitive advantage

The BeeMate company has many competitors in the market which includedifferent English centers, schools and universities, and other app developers Thereare also companies, listed as hidden competitors, conducting offline and onlineclasses

In this section, the company identifies several online learning applicationsdeveloped by three companies who are considered to be the major competitors:

Online English learning applications by three companies:

● ELSA Speak: use of AI technology in speech recognition as well as acting

as a personal virtual pronunciation coach that gives instant and precisefeedback on every sound you make

● Duolingo: an application with different challenges and levels to completeproviding an enjoyable game-like experience; users can compete withother users to get the highest score and receive in-app prizes and rewards

● Preply: hire expert English tutors with verified profiles at an affordableprice; focus on skills and learn anytime

Companies with English learning apps

Company

Preply Inc Elsa Speak

Products ● BeeMate

app with learner pairing structure

● Duolingo courses

● Duolingo Plus

● Preply onlinelearning platform

● Elsa Pro

● Elsa Speech Analyzer

● 6 Months:

1.140.000 VND

● 12 Months:

2.160.000 VND

● Monthly Premium:

312.000 VND/

month

● Yearly Premium:

● The highest will be 1.680.000 VND depends on the year of experience

of the tutor

● Monthly:

432.000 VND/month

● Yearly:

4.776.000 VND/year

Quality ● UI is friendly

and eye catching

● Using Ai

● Minimal bugs

● User-friendly interface

● Gamified learning approach

● Tutor years

of experience

● Reviews from learnerswith 5-stars rated

● Have an international certificate

● Experienced teaching staff

Selection ● Focuses on

Vietnamese English language learners

● Offers 43 different languages

● Flexible cost depends on the user's budget

● Discuss with the tutor before selecting andpaying

● Used by manyVietnamese people, easy

to study with friends

● Various learning packages

Service ● Lessons and

activities aredone using the “buddy approach” or

as it is calledMatie

● Possible tutorial service

● Interactive lessons, quizzes, and exercises

● One-on-one tutoring

● Allows students to schedule lessons at mutually convenient times with their chosen tutors

● Exercises, lectures, communicatio

n lessons,

Reliability ● Offline

library with variety of

● Providing consistent access to

● Closely tied

to the quality

of the tutors

● Recognized byeducational institutions in

learning content

language courses

available Vietnam and

internationally

Stability ● Created by

a talented pool of young developers

● Developed by language experts and educators

● Aiming to provide effectivelanguage

learning resources

● Stable platform withreliable servers engine

● No frequently downtime or crash

● Advanced andscientific curriculum system

● Stable website, few problems

Expertise ● Following

well researched learning curriculum depending

on learning goal

● Providing effective and engaging language learning experiences for its users

● Covers wide range of subjects such as math, art, butthe main focus is language learning

● Multi format file,

interesting, with many supporting functions: review video lectures, study

in groups, Company

Reputation

● New entrant

in the market but iscomposed ofhighly

qualified individuals

● One of the leading language learning apps globally

● Since 2012

● Easy to access

Winner the tp prestigious education technology exhibitionSXSWe

du launch 2016

in the usLocation ● Headquarter

Vietnam Pennsylvania,

USA

Brookline,

MA, 02446Appearance ● Eye catching

logo and user interface, easy to use

● Clean and friendly design app

user-● Friendly and smooth design app

● Easy-to-see interface, stable website,easy to

access, close

to usersSales Method ● Freemium

mode in the AppStore and Play Store

● Freemium mode ● Students

search for tutors

● Payment via internet

Credit Policies Debit card

discount and cash

● Does not have acredit system

● Users will pay a specific amount of money in order to stay

a member in the preply for

28 days

● Does not have

a credit system

Advertising ● Uses a

combination

of traditional and digital marketing methods

● Promotes through various marketing channels

● Online advertising and partnerships

● Google Ads

● Social mediaplatforms (Facebook Ads, Instagram Ads)

● Google ads

● Social media

BeeMate’s competitors offer a range of attractive features, including flexiblelearning schedules, global connectivity, and a user-friendly platform On the other hand,BeeMate’s courses are cost-effective, emphasizing high-quality education andcontinuous improvement The developers prioritize transparency and accountability,making it easy for learners to track their progress and for parents to be activelyinvolved Preply, focuses on qualified teachers, providing multilingual support forlearners from diverse backgrounds Users have the option to try different teachers andpersonalize their learning experiences However, there are challenges in customerrelations, teacher quality assurance, and access restrictions for international learners Inthis regard, BeeMate shows its strength as it is catering the Vietnamese market,therefore, having a real and experiential hand in domestic issues on English learning,

Based on the table above, BeeMate will mainly focus on pair developingstructure or “buddy approach” which includes studying and building learning habitstogether The application offers challenges based on the amount that both users pay,and it would make the users want to engage more, thereby, having activities and morefun and learning as Maties

The reason customers choose the BeeMate app instead of choosing otherproducts/services are:

● Real interactions with people; “buddy approach” Competitive prices

● Interesting and unexpected learning content

● Trailblazer in the field of EdTech

1.5 Price strategy

BeeMate will use penetration strategy with the Freemium model Freemiummeans that the application is free to download on AppStore and Playstore but willinclude In-app purchases and advertisements

In an article in Harvard Business Review, in freemium “users get basic features

at no cost and can access richer functionality for a subscription fee” (Kumar, 2014).BeeMate will have three subscription plans for learning and these are regarded as “In-app purchases” These purchases are projected to provide profit or returns to the

company The In-App purchases are mainly the “commitment fees” or the price thebuddies pay to complete a lesson and exercise with a certain duration (commitment)

Free downloads and features promote application utilization and it allows thecompany to make estimates based on the downloads from users Additionally,penetration pricing is used to establish position in an already competitive market like thedigital learning apps

Price Structure

1-Month English (30 days) 200.0000 VND/month

6-month English Journey 1.140.000(5%) discount

12-month English Journey (Premium) 2.140.000 (10%) discount

1.6 Advertising and promotional strategy

Company website ● Unlimited post on

website searching on google

● Appear at the first top by using SEO Search Engine Optimization

VND 6,900,000/month~

In-game advertising ● 2000 clicks VND

1,000,000/month(VND 4,000/click)

Advertising Frequency Budget

KOLs, KOCs ● 1 video last from 45

second to 1 minutes

VND 3,000,000/video/yearEmail Marketing ● Send 5000 emails to VND 312,000/year from

● Difficulty guaranteeing teacher quality

● Access restrictions for Users Outside

● Growing demand for online learning

● International expansion

potential

● Collaborate with educational institutes

● Intense competition from

established apps

● Technological changes and adaptability

● Changes in language

● Limited learning environment

● Shortage

of income for teacher

● Parental involvement and Market share

● Multilingual support (English, Vietnamese, Chinese, France,Spanish)

● Continuous product

improvement

learning trends

● Economic instability and financial risks

● Changing suddenly regulatory and legal

requirementsVietnam

● Technological security and data breaches

1.8 Market research

BeeMate conducted a market survey among over 300 individuals living inHanoi Among them, the most populous age group falls between 19 and 29 yearsold, accounting for 70% of the total The questions for the market researchconducted are labeled as Appendix B

Figure 1: Age distribution of respondents

For the question “How do you learn English?”, 65.5% of the surveyed peopleanswered that they watch English learning videos while browsing Facebook.Meanwhile, the remaining 46.1% chose to buy books for self-study A few othersopted for attending English language centers or forming study groups

Figure 2: Respondents daily English learning style

According to the survey results, the majority of people spend about 2 hourslearning English every day, accounting for 37.8% of the total Additionally, 23.4% ofthe remaining individuals dedicate 2 to 5 hours to learning English However, thereare still 21.4% of people who do not spend any time learning English at all And only

a few others spend over 5 hours learning English

Figure 3: Time spent by respondents learning English daily

With the amount of money they spend on learning English per month, themajority of people spend less than 1 million VND, accounting for 24.3% of theototal However, following closely behind is another significant group that does notspend any money on learning English, making up 21.4% of the total But there aretwo groups, each comprising approximately 15% of the respondents, who spendbetween 2 to 5 million VND and over 10 million VND, respectively The remainingfew spend between 1 to just over 5 million VND

Figure 4: The amount of respondents invest in learning English monthly

When asked about the amount of time they want to spend on English learningchallenges on the BeeMate app each day, as many as 43.4% of people prefer todedicate approximately 30 minutes to 1 hour, while another significant group ofabout 36.8% wants to spend 1 to 2 hours daily Only a few remaining percentagesare willing to allocate more than 2 hours up to over 4 hours for practicing English onthe BeeMate app

Figure 5: The time respondents are willing to use the BeeMate app every day

To be more specific about the app usage time during the day, over half of thesurveyed individuals (63.5%) responded that the best time is from 7 PM to 10 PM.This is because it's after they have returned home, completed their daily chores likedinner and bathing, and are ready for study On the other hand, a group of about17.4% of the respondents prefer to use the app after 10 PM before going to bed.The remaining few want to use the app in the morning and afternoon

Figure 6: Specific time frame respondents want to use the app during the day

When asked, "Are you willing to pay 500,000 VND for the BeeMate app tocommit to English challenges within one month or not?", as many as 72.4% of therespondents answered they are ready, while 17.1% said they lacked the courage.The remaining few wished to reduce the commitment amount to around 200,000VND.

Figure 7: Respondents asked whether they wanted to commit money to the app

Results of the market research show that there is a significant number of people who are willing to spend money on BeeMate app There is a good amount of people who use English learning apps and this is where the potential of BeeMate app comes in There is

an opportunity waiting to be harnessed in this field and developing an application that is cheaper than English center fees but has an enjoyable and exciting premise for learners gives the company an edge

1.9 Market target

- BeeMate separates customers into 2 groups:

❖ According to the General Statistics Office of Vietnam 2023 survey, Vietnam’sPopulation is 99,494,656 which could be estimated to be around 100 million

❖ In 2021, 12.7% of the people from the age of 15 to 22, which is12,635,821.31~12.7 million people

❖ In 2021, 15.72% of the people from the age of 23 to 30, which is15,640,559.92~15.6 million people A pie graph showing this age distribution

is as follows:

A 2021 report by a private firm Asia Plus describes the foreign languagelearning behavior in Vietnam A summary of the report is as follows:

Students age from 14 - 22

Workers or Professional age from 23 - 30

Total population: 28.3M Population: 12.7M (since

2021) ~ 44.87%

15.6M(since 2021) ~ 55.12%

the percentage of users

who learn English by

self-study

40%

the percentage of users

who learn English by

free online course

21%

the percentage of users

who learn English by

paid online course

28% ~ 5,943,000 users ~6,000,000 users

the percentage of users

who learn English by

going to English center

5%

the percentage of users

who learn English by

Official curriculum

3%

the percentage of users

who learn English by

28% ~ (100%) for a year only

(assumed)

16.8% ~ (60% in

total)

4.48% ~ (16% in total)

6.62% ~ (23.64%

in total)

0.086% ~ (0.307% in total)

1,008,000 users 268,800 users 397,200 users 5139 users

Target Market approach to reach 428.25 users per month on average

(5139/12)

Package 0 1-Week Trial (7 days) FREE

Package 1 1-Month English (30

days)

200K VND/month

Package 2 6-month English Journey 1140K VND (5%) discount

(190K VND/month)Package 3 12-month English

Journey (Premium)

2160K VND (10%) discount (180K/month)

The Average of a Tuition fee for 1 month will be (price in VNDx1000)

=(200+190+180)/3=190K/monthBeeMate will take 60% of 190K as the commision monthly, which is

114K/users The rest 40% will be 190-114=76K is for tutor salary/month if Mate wants to be

the teacher

The tables above are the projected revenue of the company in a 1-year period

2 The Operational Plan

2.1 Business Structure

BeeMate made a strategic decision to register as a joint stock company (JSC) inVietnam due to its numerous benefits that align with the goals of the company as a newentrant in the Edtech market As a joint stock company, BeeMate has the advantage ofattracting a larger pool of investors and raising substantial capital to fuel growth andinnovation This access to diverse funding sources enables us to develop and deploycutting-edge educational technologies and services Additionally, the joint stockstructure provides limited liability to our shareholders, safeguarding their personalassets and encouraging investment confidence A sample business registrationcertificate is presented at Appendix C

● International name: BEEMATE EDUCATION TECHNOLOGY JOINT STOCK

COMPANY

● Abbreviation: BEEMATE.,JSC

● Tax code: To Be Announced

● Address: 577 Dien Bien Phu, Hoa Khe, Thanh Khe, Da Nang

● Open date: 2024-01-01

● Managed by: Da Nang Tax Department

● Status: In-Active (Registration certificate hasn’t been granted yet)

2.2 Scope of Operations

Welcome to BeeMate, the revolutionary language learning app that connects twousers to embark on a collaborative English study journey With a focus on flexibility and affordability, BeeMate offers three enticing packages to cater to users' unique

preferences Package 1 presents an accessible option at just 175,000 VND per month, while Package 2 offers excellent value at 997,500 VND for six months of learning For those seeking a long-term commitment, Package 3 provides a comprehensive yearly plan at 1,890,000 VND Believing in the power of immersive experiences, BeeMate offers users a free trial period to explore the app solo, engaging in two hours of

enriching study sessions on their own, before discovering the perfect buddy to share their language learning adventure with

The number of students that BeeMate

serves or intends to serve

BeeMate aims to serve 5,000 students in its first year of operation, with a projection

to expand further in subsequent years.The geographic area or locations where

BeeMate services are available

As mentioned above at 1.9: Market target,BeeMate operates in major cities within Vietnam, including Ho Chi Minh City, Hanoi, Da Nang as the rate of population density is tremendous

Hanoi capital: Population density is 2,511 (person/km2)

Ho Chi Minh City: Population density is 4,481 (person/km2)

Da Nang City: 950(person/km2)(according to

https://www.gso.gov.vn/en/px-web/?pxid=E0201&theme=Population%20and

%20Employment )The diversity and depth of BeeMate

educational services offer A wide range of educational services, including one-on-one English language

learning sessions, group study sessions, grammar workshops, pronunciation practice, and vocabulary building exercises

How established your business is in the

education market

The local education market has been increasingly high, and the trends still keep

rising as of TOEIC, IELTS, Cambrideges certificates, as well as the Education spending record from the World Bank in

2022 VietNam was reported at 15.45%

as the government expenditure

AKA 249.5 trillion Vietnamese Dong

(https://tradingeconomics.com/vietnam/public-spending-on-education-total-percent-of-government-expenditure-wb-data.html#:~:text=Government

Sample Estimated Charter Capital

As a business operating in Vietnam, BeeMate JSC needs to comply with various

regulations to ensure legal and ethical practices Some of the key regulations that businesses should comply with in Vietnam include:

● Business Registration: BeeMate JSC must register as a legal entity with the

relevant authorities, such as the Department of Planning and Investment, and obtain a business license

Registering a business is estimated to be VND1,600,000 if done via a law firm

The registration fee includes, but are not limited to, the following:

● Fee for business registration and issuance of business license

● Fee for stamp engraving and publication of company seals as specified onArticle 44 of the 2020 Enterprise Law

● Fee for disclosure of business registration information on the nationalwebsite

● Consulting fee

● Fee for document transport and receiving from the Department ofPlanning and Investment

● Taxation Regulations: Comply with tax laws and regulations, including corporate

income tax, value-added tax (VAT), personal income tax (PIT), and other

applicable taxes

● Consumer Protection Laws: Comply with consumer protection laws to ensure

fair and transparent business practices and safeguard consumer rights

● Labor laws in Vietnam

According to the labor code and Resolution No 17/2022/UBTVQH15 inVietnam, as shown in Appendix D, the standard working hour limit is 48 hours perweek, with a daily maximum of 8 hours However, employers and employees canagree on overtime work, subject to certain limits Overtime cannot exceed 12hours per day, 40 hours per month, and 200 hours per year This means that ifboth parties consent, employees can work additional hours beyond the regularworking hours, but there are specific boundaries to prevent excessive overtimeand ensure employee well-being

❖ In Vietnam, there are two types of minimum wages: the commonminimum wage of 1,490,000 VND for state-owned organizations and the secondtype for non-state enterprises based on different zones defined by thegovernment Employers must follow the appropriate minimum wage regulationsbased on their enterprise type and location.

❖ In Vietnam, the retirement age is currently 60 years and 6 monthsfor men and 55 years and 8 months for women in 2022 It will gradually increase

to 62 for men by 2028 and 60 for women by 2035

In Vietnam, there only 4 weeks that a whole nation should rest, which are:

-1 week Reunification day (April 30th and May 1st)

-1 week Lunar New Year

-1 week Independence day

-1 week Summer break with the company

Number of employees Working Hours/year Salary/year

Summer (Marketing) 48 weeks*40=1920 hrs VND180,000,000=1920 hrs *

VND 93,750/hrs(VND 3,000,000/month)Ha(Founder and CEO) 48 weeks*40=1920 hrs VND240,000,000=1920hrs*VN

D 125,000/hrs(VND 4,000,000/month)Trung(Sales Officer) 48 weeks*40=1920 hrs VND192,000,000=1920

hrs*VND 100,000/hrs(VND 3,000,000/month)Phuc (Financial and

Accountant)

48 weeks*40=1920 hrs VND180,000,000=1920 hrs *

VND 93,750/hrs(VND 3,000,000/month)Diem(SoftwareEngineer) 48 weeks*40=1920 hrs VND180,000,000=1920 hrs *

VND 93,750/hrs

(VND 3,000,000/month)Dung(Educational

Specialist)

48 weeks*40=1920 hrs VND180,000,000=1920 hrs *

VND 93,750/hrs(VND 3,000,000/month)

Total Salary to pay per year VND 156,000,000/year

● Trademark and intellectual property

In accordance with the laws of the land, BeeMate will apply for atrademark in Intellectual Property (IP) Vietnam which is under the Ministry ofScience and Technology The name, logo and brand attached to BeeMate will betrademarked under the IP laws of Vietnam A sample business card is listed asAppendix E

The following are the basic charges for trademark application:

- Official charges for filing application: VND 150,000/ 01 application

- Fee for publication of application: VND 120,000/ 01 application;

- Fee for the trademark search for the substantive examination process: VND180,000/ 01 group of goods or services;

- Fee for the trademark search from the 7th good or service onwards: VND30,000/ 01 good or service;

- Fee for formality examination: VND 550,000/ 01 group of goods or services;

- Fee for formality examination from the 7th good or service onwards: VND120,000/ 01 good or service

IP Vietnam registration fee breakdown

Official charges for filing application VND 150,000

Fee for publication of application: VND 120,000

Fee for the trademark search for the VND 180,000

substantive examination process

Fee for the trademark search from

the 7th good or service onwards

VND 30,000

Fee for formality examination VND 550,000

Fee for formality examination from

the 7th good or service onwards

Decree number 143/2016/NĐ-CP 14/10/2016, there is no additional cost related

● Personal Data Protection Decree

According to Decree No 13/2023/ND-CP on Personal Data Protection(“Decree”), its first data protection law, Vietnam's data protection laws carry bothadministrative and criminal penalties for non-compliance Administrative

penalties range from fines of VND 2 million to VND 70 million, depending on

the violation Criminal penalties apply to breaches of communicationconfidentiality and can involve fines and prison sentences of up to three years Inaddition to penalties, individuals affected by data breaches have the right to seekcompensation from the infringing party through legal action and proof of actualdamages The government is also working on a separate decree for sanctionsrelated to cybersecurity violations, including those related to personal dataprotection

2.4 Insurance

For a company like BeeMate, three types of insurance are applicable.These are the following:

● General liability insurance: protects the business from the most commonliabilities in client contracts and commercial leases

Estimated cost: 4.000.000 VND/12 months

● Technology Liability-Information & Communication: provides coverage incase of failure of product, error, or omissions that result in financial losses

or any form of harm to users

Estimated cost: 3.000.000 VND/12 months

● Social insurance: state-mandated insurance that provides coverage toemployees, including medical costs, etc

Estimated cost: 17.5% of salary/12 months

● Medical Insurance for Vietnamese:

4.5% of monthly salary (foreigner included)

The first two insurances are available in Vietnam through privateinsurance firms, while the last one is state-mandated Sample insurance for thefirst and third types listed above are presented as Appendix F and Grespectively

● General liability insurance VND 4,000,000/year VND 4,000,000

VND 675,000+VND 900,000+VND 720,000+VND 675,000+VND 675,000+VND 675,000=VND 4,320,000/month/6

VND 51,840,000/year

When considering the list of costs associated with business premises, essentialexpenses include rent for leasing the space, utilities to ensure access to electricity,water, and gas, internet connectivity for communication and online operations, and trashdisposal to maintain a clean and efficient environment These costs are essential formaintaining a productive and comfortable workspace, enabling the company to deliverits services efficiently while providing a conducive environment for its employees andcustomers The floor plan and office layout is presented in the Appendix section asAppendix H and I respectively.