Korean businesses put their trust in Vietnam

(Chinhphu.vn) - Korean enterprises affirmed their belief in Vietnam's preferential policies and proposed to remove obstacles for effective investment. The enterprises expressed their desire to accompany Vietnam for stable development and promote investment cooperation between the two economies in the new period.

Conference on tax and customs policy dialogue with Korean enterprises coordinated by the Ministry of Finance and the Korean Embassy - Photo: VGP/HT

Korean enterprises highly appreciate Vietnam's investment environment

Speaking at the Tax and Customs Policy Dialogue Conference with Korean Enterprises organized by the Ministry of Finance in coordination with the Korean Embassy on the afternoon of September 30, Mr. Ko Tae Yeon, Chairman of the Korean Business Association in Vietnam (Kocham), thanked the Vietnamese Government for its preferential policies and active support in recent times. He emphasized that tax incentives, simplification of administrative procedures, along with the development of industrial park and logistics infrastructure have created a solid foundation for Korean enterprises to confidently invest and develop stably.

South Korea is currently one of the largest investors in Vietnam with a total accumulated capital of about 87.5 billion USD, accounting for nearly 18% of total FDI capital. South Korea holds the number one position in terms of accumulated FDI capital, second in ODA capital and is the third most dynamic partner in the field of trade and labor cooperation. Bilateral trade turnover reached 81.5 billion USD, showing the close connection between the two economies .

Mr. Ko Tae Yeon, Chairman of the Korean Business Association in Vietnam (Kocham) - Photo: VGP/HT

Mr. Ko Tae Yeon said that in the past, Korean enterprises focused on the textile and footwear industries. However, the investment sector has now expanded to many high-tech industries such as semiconductors, electronics, energy, automobiles, and construction. These investments have created hundreds of thousands of jobs, contributing greatly to Vietnam's GDP and export turnover. Notably, Samsung alone contributed about 14% of the country's total export turnover last year, making an important contribution to the 7% GDP growth.

Kocham representative emphasized that in the coming time, Korean enterprises will continue to pay attention to new fields such as semiconductors, artificial intelligence, green energy, smart cities, smart agriculture and infrastructure. These are fields that are in line with Vietnam's sustainable development strategy and are also Korea's strengths.

Proposal to remove difficulties, Ministry of Finance responds promptly

In addition to the achievements, Mr. Ko Tae Yeon frankly pointed out the difficulties that Korean enterprises face. In fact, enterprises have reported that there are some problems arising in the field of tax and customs due to the complexity of policies and different understandings in localities. Common problems include: slow VAT refund, unclear cost standards, problems with liquidation procedures of long-used machinery, complicated regulations on certificates of origin, etc.

Mr. Ko Tae Yeon said that it is important to avoid businesses accidentally violating the law due to lack of information. Therefore, increasing the consistency of the law and transparency in procedures will help businesses confidently expand investment, create more jobs and contribute to the budget.

At the conference, the Ministry of Finance received 9 questions with 18 contents from Korean enterprises, related to value-added tax refunds, on-the-spot export procedures, loan interest and incentive expansion. Representatives of the Tax Department and the Customs Department answered most of the questions right at the conference, creating an open and transparent atmosphere.

From a business perspective, a Samsung representative said that the R&D Center in Bac Ninh is an important driving force for future investment projects, and also plays a leading role in the supply chain. The company is committed to complying with the law, improving competitiveness and fulfilling social responsibility in Vietnam.

Samsung highly appreciates the reform of Vietnam's tax sector, especially the electronic application in tax declaration, payment and refund, which helps save time and costs. However, the company also raised some problems.

Mr. Luu Duc Huy, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance), directly answered a number of recommendations. Regarding the case of Hyosung Dong Nai, related to the import tax on PP plastic, he said that the Ministry of Finance has submitted to the Government to issue Decree 199, adjusting the tax rate from 0% to 2% to comply with international commitments and the domestic production situation.

Regarding the proposal of Kocham Hanoi on non-deductible expenses, Mr. Luu Duc Huy informed that the new draft decree has clarified expenses that violate specialized regulations, such as overtime expenses exceeding regulations, advertising prohibited products or expenses exceeding the permitted level.

Regarding tax incentives for high technology, Mr. Luu Duc Huy emphasized that the problem does not lie in the Law on Corporate Income Tax, but in the Law on High Technology. Law No. 67 has provisions for the highest incentives, applied equally to domestic and FDI enterprises, and has a transitional mechanism to ensure benefits.

A representative of the Ministry of Finance said that, in addition to the content that has been answered, if businesses still have questions, they can send petitions through the Embassy or association for timely consideration by the Ministry of Finance, the Tax Department, and the Customs Department.

Mr. Ko Tae Yeon expressed his belief that the spirit of "three together" - working together, succeeding together, developing together - which the Government leaders have emphasized will continue to be a great driving force for the Vietnam - Korea cooperative relationship.

"Korean enterprises consider Vietnam's development as their own development, committed to becoming long-term, reliable partners. The Korean Business Association in Vietnam will continue to closely coordinate with the Ministry of Finance and other agencies to make practical contributions to Vietnam's economic development," Mr. Ko Tae Yeon affirmed.

Mr. Minh

Source: https://baochinhphu.vn/doanh-nghiep-han-quoc-dat-niem-tin-vao-viet-nam-102250930195814539.htm