During a meeting with Ho Chi Minh City leaders, Samsung complained about delays in receiving a tax refund of 582 billion VND.

The chairman of the Korean Chamber of Commerce in Vietnam stated that many Korean businesses are experiencing delays in tax refunds and provisional tax refunds for on-site exports.

At the dialogue conference between Ho Chi Minh City leaders and Korean businesses, organized by the Ho Chi Minh City Trade and Investment Promotion Center (ITPC) and the Korean Consulate General in Ho Chi Minh City on March 25th, Mr. Kim Nyoun Ho, President of the Korean Chamber of Commerce in Vietnam (KOCHAM), stated that there are many issues that businesses have requested be resolved soon.

Samsung SEHC CEO Kwon Choon Ki (seated in the middle) shared his thoughts at a dialogue conference with Ho Chi Minh City leaders on March 25. (Photo: Phu Quoc)

In particular, he said that the procedures for VAT refunds and tax refunds for goods exported domestically are issues that many businesses complain about.

Regarding tax refunds, Mr. Kwon Choon Ki, General Director of Samsung Electronics HCM CE Complex (Samsung SEHC), stated that the company is facing difficulties due to not yet receiving value-added tax refunds.

According to the General Director of Samsung SEHC, Samsung first established a TV manufacturing plant in Ho Chi Minh City in 1995 and has been operating stably in Vietnam for 30 years.

By 2025, Samsung Vietnam will have 6 manufacturing plants, 1 sales entity, and 1 research and development center located in Bac Ninh, Thai Nguyen, Hanoi , and the Ho Chi Minh City High-Tech Park.

Specifically, the Samsung SEHC factory in the Ho Chi Minh City High-Tech Park began producing consumer electronics such as TVs, refrigerators, washing machines, and vacuum cleaners, and exporting them to countries around the world since 2016. With an export ratio exceeding 90%, the Samsung SEHC factory was approved by the Vietnamese government to be converted into an Export Processing Enterprise (EPE) from May 1, 2021.

However, after converting to an export processing enterprise, from June 2021 to September 2024, Samsung SEHC still owes approximately $22.9 million USD in value-added tax refunds, equivalent to about VND 582.1 billion. This is causing difficulties for the company in its business operations.

Mr. Vo Van Hoan, Vice Chairman of the People's Committee of Ho Chi Minh City: Ho Chi Minh City always creates the most favorable conditions for foreign businesses, especially Korean businesses, to operate stably in the city. (Photo: P. Quoc)

According to Mr. Kwon Choon Ki, the company has repeatedly discussed the issue through meetings with the Ho Chi Minh City Tax Department, the Ministry of Finance , the General Department of Customs, and the General Department of Taxation, requesting a solution. However, for the past three years, the company has not received any specific guidance on how to resolve the problem.

Responding at the conference, Mr. Giang Van Hien, Deputy Head of the Tax Department of Region II, said that they had received this issue from Samsung and were coordinating with relevant agencies to resolve the problem.

The Ministry of Finance has issued a decision to urgently consider and process tax refunds for Samsung SEHC and other businesses facing difficulties in this area.

In mid-March 2025, tax authority leaders met with company representatives at the tax office headquarters to discuss and finalize the necessary procedures.

According to Mr. Giang Van Hien, the tax authorities have recently observed instances of some businesses exploiting the tax refund policy to buy and sell invoices for illegal profit. Therefore, a review of business operations is necessary to prevent the exploitation of the tax refund policy.

Vice Chairman of the Ho Chi Minh City People's Committee Vo Van Hoan stated that the cooperative relationship between Vietnam and South Korea has developed strongly over the past 30 years, especially with the upgrading of the relationship to a "Comprehensive Strategic Partnership" in December 2022, marking a new phase of development.

The friendly relations between Ho Chi Minh City and South Korea have also achieved many successes. South Korea is currently one of Ho Chi Minh City's leading partners in trade, investment, and tourism. There are currently more than 2,000 South Korean businesses and a community of over 80,000 South Koreans living and working in Ho Chi Minh City.

Ho Chi Minh City always strives to ensure a stable political and social environment and create the most favorable conditions for foreign businesses, especially Korean businesses, to operate stably, sustainably, and effectively in the city.

"Ho Chi Minh City is committed to listening to and sharing the difficulties faced by Korean businesses. The city will implement various solutions to support businesses, attract investment, and promote economic growth. The Ho Chi Minh City government always strives to the utmost to ensure a stable political and social environment and create all favorable conditions for foreign businesses," Mr. Vo Van Hoan affirmed.

Mr. Shin Choong Il, Consul General of South Korea in Ho Chi Minh City, said he also hoped the conference would be the starting point for the remarkable development of both the city and the Korean business community, and expressed his wish for the city government to continue to accompany and support Korean businesses.

According to the Ho Chi Minh City Department of Finance, as of January 31, 2025, South Korea was the third largest investor in Ho Chi Minh City, with 2,286 projects and a total capital of US$5.5 billion.

Mr. Kim Se Won, General Director of CJ Food Vietnam, stated that the CJ Group has been operating in Vietnam since 2001, with member companies in the fields of food, animal feed, logistics, entertainment, and biotechnology.

Specifically, the company leased land and invested over 2.65 trillion VND to build a factory in Hiep Phuoc Industrial Park, which was completed in 2018. However, it has not yet been granted a land use right certificate, and therefore is not eligible for VAT refund for the factory investment.

In 2020, the factory burned down, and the company faced further difficulties in deciding whether to reinvest due to the lack of land use rights certification.

Ha Linh

Source: https://vtcnews.vn/gap-lanh-dao-tp-hcm-samsung-phan-nan-bi-cham-hoan-thue-582-ty-ar933684.html