Samsung Vietnam requests VAT reimbursement for its HCMC branch.

In a recent pivotal meeting, Samsung Vietnam’s CEO Na Ki-hong addressed the pressing issue of value-added tax (VAT) refunds for Samsung Electronics’ operations within the Ho Chi Minh City complex. This discussion took place during a collaborative session with the Minister of Finance, Nguyen Van Thang, in Vietnam’s capital, Hanoi.

During this engaging dialogue, the two leaders didn’t just focus on VAT; they also delved into the potential for additional corporate income tax (CIT) incentives tailored for Samsung’s expansive projects stretching across the northern provinces of Bac Ninh and Thai Nguyen, as well as further investments in HCMC. The Minister mentioned that discussions on the CIT incentives are ongoing and will soon be presented to the National Assembly for further consideration.

Thang notably emphasized that South Korea stands as one of Vietnam’s paramount partners, citing its role as the leading foreign investor and the second-largest contributor of official development assistance (ODA) in the region. Such partnerships are vital for nurturing Vietnam’s economic landscape.

With Samsung being the largest foreign investor in Vietnam—employing roughly 100,000 Vietnamese workers—the conglomerate significantly contributes to the socio-economic development of the nation. The Minister acknowledged the giant’s role in bolstering Vietnam’s response to the COVID-19 pandemic, which has been challenging for many sectors.

In further remarks about Vietnam’s macroeconomic projection, Thang pointed out the nation’s ambitious target of achieving an 8% growth rate by 2025, with aspirations for double-digit growth from 2026 to 2030. Achieving this goal will necessitate continued investments from major corporations, particularly influential global entities such as Samsung.

Thang expressed optimism that Samsung would not only persist in expanding its investments but would also develop more research centers, enhance the localization of production, and encourage sustainable growth in high-tech industries within Vietnam.

Turning to support policies, Thang reiterated the Vietnamese government’s commitment to equitable treatment for both domestic and foreign investors through current tax regulations. He highlighted the annual collaboration between the Ministry of Finance and the South Korean Embassy in Vietnam, focusing on dialogues that address tax and customs regulations relevant to Korean businesses operating in the country.

Moreover, on December 31, 2024, the Vietnamese government rolled out Decree No. 182/2024/ND-CP, which provides a framework for establishing and managing the Investment Support Fund. This initiative aims to assist corporations that meet specific criteria, reinforcing support for investment in the country.

In response to the initiatives discussed, Na Ki-hong acknowledged the Vietnamese government’s ongoing efforts to cultivate a favorable business environment conducive to foreign investments, specifically for companies like Samsung. Highlighting Samsung’s significant investment of $23.2 billion up to this point, he noted that the company generated a revenue of $62.5 billion in 2024, which included an impressive export income of $54.4 billion. Additionally, the Samsung ecosystem in Vietnam has grown to include 306 local vendors, creating a robust network of local partnerships.

Beyond the Ho Chi Minh City complex, Samsung operates several key facilities across the country, including the Samsung Electronics Vietnam Thai Nguyen (SEVT) plant and Samsung Display Vietnam (SDV), among others in Bac Ninh. Collectively, these factories recorded a profit of KRW 966 billion ($689.4 million) in the first quarter of 2025, reflecting a 39% decline year-on-year. This contraction marked the lowest first-quarter profit recorded by Samsung Electronics Vietnam since 2016, as outlined in the conglomerate’s Q1 financial statements.

Despite the profit drop, total revenue from the four major factories witnessed a slight uptick of 3.8% year-on-year, amounting to KRW 22.8 trillion ($16.28 billion). This mixed financial performance highlights the ongoing complexities Samsung faces within the competitive global market landscape.

In March 2025, Samsung Vietnam welcomed Na Ki-hong as the new general director, taking the helm from Choi Joo Ho. His leadership will be pivotal as the company navigates the challenges and opportunities presented by the evolving business environment in Vietnam.