Samsung Vietnam seeks VAT refund for HCMC subsidiary

Samsung Vietnam CEO Na Ki-hong brought up the issue of value-added tax (VAT) refunds for Samsung Electronics HCMC CE Complex (SEHC) in Ho Chi Minh City at his working session with Minister of Finance Nguyen Van Thang on Thursday.

At their meeting in Hanoi, Na Ki-hong and Minister Thang also discussed matters related to additional corporate income tax (CIT) incentives for the Korean giant’s projects in the northern provinces of Bac Ninh and Thai Nguyen and in HCMC.

Thang said his ministry has reported to competent authorities on its plan concerning CIT incentives for Samsung’s projects in the aforementioned localities, adding that the matter is expected to be submitted to the National Assembly, Vietnam's legislature, for review and decision.

Thang emphasized that South Korea remains one of Vietnam’s most important partners, ranking as the top foreign investor in Vietnam and the second-largest provider of ODA to the Southeast Asian country.

Samsung is Vietnam’s largest foreign investor, with approximately 100,000 Vietnamese workers. Alongside other FDI firms, the tech heavyweight has played a positive role in advancing Vietnam’s socio-economic progress and supporting the country’s efforts to overcome the Covid-19 pandemic, the minister noted.

Briefing Na Ki-hong on Vietnam’s macro-economic outlook, Thang noted that to achieve the growth target of at least 8% in 2025 and double-digit expansion between 2026 and 2030, Vietnam needs support of major corporations, particularly global players like Samsung.

The minister expressed hope that Samsung will continue expanding investment, developing more research centers, boosting localization, and promoting sustainable growth in high-tech industries.

Regarding support policies in Vietnam, Thang affirmed that current tax regulations, both general and preferential, treat domestic and foreign investors equally.

He noted that each year, the Ministry of Finance collaborates with the South Korean Embassy in Vietnam to host a policy dialogue with Korean businesses, focusing on tax and customs regulations and administrative procedures.

On December 31, 2024, the Vietnamese government issued Decree No. 182/2024/ND-CP governing the establishment, management, and use of the Investment Support Fund. Corporations and businesses meeting the required criteria and conditions are eligible to receive assistance from the fund, Thang said.

In response, Na Ki-hong noted that the Vietnamese government, Ministry of Finance, and relevant agencies have consistently fostered a favorable business environment for foreign companies operating in the country, including Samsung.

Samsung has invested $23.2 billion in Vietnam, making it the largest foreign investor in the country. In 2024, Samsung Vietnam earned a revenue of $62.5 billion, including an export income of $54.4 billion. The number of Vietnamese vendors in the Samsung Vietnam ecosystem has reached 306.

Apart from Samsung Electronics HCMC CE Complex, Samsung’s key factories in Vietnam include Samsung Electronics Vietnam Thai Nguyen (SEVT) in the northern province of Thai Nguyen, and Samsung Display Vietnam (SDV) and Samsung Electronics Vietnam (SEV), both in the northern province of Bac Ninh.

The four factories posted a total profit of KRW966 billion ($689.4 million) in the first quarter of this year, down 39% year-on-year.

This was the lowest first-quarter profit recorded by Samsung Electronics Vietnam since 2016, according to the South Korean conglomerate’s Q1 consolidated financial statements.

Meanwhile, total revenue from the four factories rose slightly by 3.8% year-on-year to KRW22.8 trillion ($16.28 billion).

In March, Samsung Vietnam appointed Na Ki-hong as its general director, succeeding Choi Joo Ho.