Vietnam government looks at Samsung's Global Minimum Tax proposals

The Vietnamese government has already studied Samsung's proposals regarding the country's implementation of the Global Minimum Tax in 2024, and regulators are supposed to promptly work out proper relevant solutions, Deputy Prime Minister Le Minh Khai said.

At a Thursday ceremony marking the 10th founding anniversary of Samsung Electronics Vietnam Thai Nguyen Co. Ltd (SEVT) on Friday, Khai said the government acknowledges Samsung’s proposals regarding the enforcement of the Global Minimum Tax (GMT) from 2024. He said the country also seeks to create favorable conditions for foreign investors, including Korean tech giant Samsung, to do business effectively and grow sustainably in Vietnam.

The GMT under Organization for Economic Cooperation and Development (OECD) Pillar Two is a once-in-a-lifetime global tax reform that will apply to multinational companies with revenue of 750 million euros and more. Such companies will be subject to a minimum global tax rate of 15%.

“The cabinet has assigned relevant ministries and agencies to urgently study and propose competent authorities launch new incentives and support policies to maintain the competitiveness of Vietnam's investment environment and ensure the interests of investors in conformity with international commitments and real conditions in Vietnam,” Khai said.

At the event, the official praised Samsung’s efforts and achievements since its entry to Vietnam in 2008, saying its effective operations have made important contributions to Vietnam’s electronics industry and bilateral relations between the two nations.

Samsung is the biggest Korean investor and the largest single foreign investor in Vietnam with total registered capital of nearly $20 billion. So far, its capital in projects in Thai Nguyen province has neared $7.5 billion, or about 73% of the total foreign direct investment in the province.

Khai suggested Samsung Group continue expanding operations and consider Vietnam an important strategic global location for its overall growth, not only in terms of production but also in research and development of key products for export to the world, with the aim of becoming a talent-nurturing center in Vietnam, inventing and adopting the world's most advanced technologies.

Throughout its 10-year journey in Vietnam, SEVT has always been a leading manufacturer of mobile devices under the brand Samsung "made in Vietnam". It is also a unit with the largest revenue and contribution to the export turnover of Samsung Group in Vietnam. Last year, the company raked in $28.3 billion in revenue and $27.3 billion in export earnings, equivalent to 38.3% and 42.1% of Samsung Group's total, respectively.

The Deputy PM urged the preparation of necessary conditions for early trial production of semiconductor chip grid products, toward mass production from July 2023 at the Samsung plant in Thai Nguyen.

“It will be a good start for its closed-looped production chain in the electrical and electronic industries in Vietnam,” he noted.

General director of Samsung Vietnam Choi Joo Ho said that with the comprehensive support of the Vietnamese government and Thai Nguyen authorities as well as the consensus of employees and suppliers, Samsung has overcome all and built the SEVT of today.

“In the coming time, Samsung Vietnam will unite with SEVT to deliver products on time, creating successes in the market together,” he stressed.

Reiterating many Vietnamese leaders’ statement that "Samsung's success is Vietnam's own", Choi said Samsung will do its best to become an enterprise that accompanies Vietnam, and a national enterprise that receives the love and affection of the Vietnamese people.

He also expressed his hope for joint efforts to overcome all challenges on the path of the next decade and the future ahead.