Ho Chi Minh City Chairman apologizes to Korean businesses for slow resolution of petition

On the afternoon of August 16, the Ho Chi Minh City Investment and Trade Promotion Center (ITPC) coordinated with the Korean Consulate General in Ho Chi Minh City to organize a dialogue conference between city leaders and Korean businesses.

Talking about difficulties when investing in Ho Chi Minh City, Mr. Cho Sung Yol, General Director of GS E&C Company in Vietnam, said that businesses are facing two major problems.

Firstly , re-evaluation of land price of new urban area project Nha Be Metrocity GS.

Specifically, according to the contract signed between GS E&C and the Ho Chi Minh City People's Committee in 2007, GS advanced the cost of compensation for site clearance for the city to implement. This advance amount was deducted from the project's financial obligations regarding land.

In 2014, after the Prime Minister approved the implementation time, the Ho Chi Minh City People's Committee issued a document confirming the total financial obligations for the project's land. However, currently, the city's affiliated agencies are unilaterally re-evaluating the project's land price.

GS E&C believes that if Ho Chi Minh City unilaterally re-evaluates land prices and requires businesses to pay the difference, it will negatively affect the stability and trust of FDI businesses, including GS E&C.

Korean businesses make recommendations to Ho Chi Minh City leaders. (Photo: ITPC)

This content was also proposed by the company at a dialogue with city leaders last year.

The enterprise requested the Ho Chi Minh City People's Committee to promptly complete the re-evaluation of land prices and guide investors to complete financial obligations within the land price range determined in 2014 so that the project can be implemented on schedule.

Second , the problem of slow settlement of construction costs for the Tan Son Nhat - Binh Loi - Outer Ring Road (TBO) route.

In 2016, GS E&C completed the construction and handed over this route to Ho Chi Minh City for use. However, after more than 7 years, the settlement of construction costs for the route is still delayed and has not been completed.

Meanwhile, Chairman of the Korean Business Association in Central and Southern Vietnam (KOCHAM), Mr. Choi Bundo, informed that some Korean companies in Ho Chi Minh City are having difficulty in VAT refunds, affecting their business operations.

"The General Department of Customs and the General Department of Taxation are both under the Ministry of Finance, but it is difficult to understand why the General Department of Taxation does not approve VAT refunds for cases that have been recognized and licensed by customs authorities," KOCHAM representative reflected and suggested that authorities could consider and soon issue instructions.

According to Mr. Shin Choong IL, Consul General of Korea in Ho Chi Minh City, Korean businesses mainly complained about delays in tax refunds; cumbersome procedures related to investment licenses, land use right certificates, etc.

Ho Chi Minh City Chairman Phan Van Mai at a dialogue with Korean businesses on the afternoon of August 16. (Photo: ITPC)

After listening to the recommendations of businesses, Chairman of the Ho Chi Minh City People's Committee, Mr. Phan Van Mai affirmed that for some issues related to the authority of the General Department of Taxation and the Ministry of Finance, the city will work to make recommendations to competent authorities for resolution.

Recently, Ho Chi Minh City has resolved 13/21 petitions from the local Korean business community. Among the 8 remaining issues, some were transferred from previous dialogues. Ho Chi Minh City People's Committee will notify each case so that KOCHAM can monitor and businesses can grasp the progress of the resolution.

"In the case of GS E&C Company, I really apologize to the director. There were problems from before. The problem with the valuation is a difficult problem, and there is no final result yet. When establishing a valuation team, investors should participate in giving their opinions," said the Chairman of Ho Chi Minh City.

Regarding the payment for the Tan Son Nhat - Binh Loi - Outer Ring Road (TBO), the Chairman of Ho Chi Minh City said that the Ministry of Finance has recently inspected many projects, including this one. The city has worked with the inspection team of the Ministry of Finance to find a solution for businesses.

Chairman Phan Van Mai also shared that the city really wants to listen to the opinions of Korean investors to prepare and will sit down with Korean investors at the right time to promote. The city understands that to attract new investors, resolving problems and supporting current investments is also very important.

South Korea is currently one of the city's major trading partners, ranking 4th out of 120 countries and territories with direct investment in the area.

In 2022, there will be 125 direct investment projects of Korean investors in Ho Chi Minh City, with a total investment capital of more than 60.6 million USD (accounting for 10.25% of the total foreign investment capital in Ho Chi Minh City).

Up to now, Korea has had 2,135 projects, with a total investment capital of more than 5.5 billion USD (accounting for 9.64% of total foreign investment capital in Ho Chi Minh City).

The Chairman of Ho Chi Minh City has an urgent report on mobilizing remittances . In order to attract remittances and create resources for economic development, Ho Chi Minh City will propose to the Central Government some important contents.

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