return icon

MOF says ‘no’ to Samsung’s requests for tax incentives, economists agree

VietNamNet Bridge - Economists have supported the Ministry of Finance’s (MOF) decision to reject the requests for tax incentives made by Samsung. 
VietNamNet Bridge - Economists have supported the Ministry of Finance’s (MOF) decision to reject the requests for tax incentives made by Samsung. 


MOF, in reply to Samsung’s tax incentive claims, pointed out that Samsung wants to go beyond the framework stipulated in law.

Nguyen Quang Thai, secretary general of the Vietnam Economics Science Association, said that MOF’s response showed that the state budget is tight and cannot tolerate any further tax remissions.

“Samsung has received all the preferences Vietnam can offer,” he commented, emphasizing that Samsung, like any other investor, must follow the law.

Phuong Ngoc Thach, deputy chair of the HCM City Economics and Management Science Association, said MOF ‘has taken the right move’.

Thach went on to say that the MOF’s decision will help regain fairness for private Vietnamese enterprises which have been put at disadvantage against foreign invested enterprises (FIEs) which enjoy many investment incentives.

Developing economies highly appreciate foreign direct investment (FDI) in their early stages of development when domestic resources remain limited. However, in the long term, the economies can only develop in a sustainable way if they are led by powerful domestic enterprises.

Therefore, Thach said, Vietnam needs to  make the development of domestic enterprises as the top priority.

Nguyen Ngoc Son from Ton Duc Thang University commented that the ministry’s refusal shows Vietnam’s consistent policies which aim to create a leveling playing field for investors. 

CIEM, in a report released recently, warning about the investment incentives Vietnam offers to foreign investors, urged to take action to restrict the ‘foreign investors’ rights to haggle about investment incentives’.

Son said that if Vietnam gives the right to foreign investors to haggle about investment incentives today, it will have to pay a heavy price for this tomorrow – the destruction of domestic enterprises which serve as the pillar of the national economy. 

However, Vu Si Cuong from the Finance Academy warned he can see big difficulties in restricting foreign investors’ rights related to investment incentives.

The problem lies in decentralization which encourages local authorities to offer more investment incentives to compete with other provinces in attracting foreign investment.

“I think the long term problem is in the local authorities, rather than the central authorities,” he said. “Local authorities, which want to have higher income and more jobs, tend to lure investors by offering more preferences to them.”

“The incentives may bring benefit to localities but not to the economy in a whole,” he said.

Dat Viet


Vietnam’s CPI inches up in Q1

Vietnam’s consumer price index (CPI) in the year’s first quarter edged up around 4.3% year-on-year, showed official data.

Vietnamese retail market appealing to foreign investors

The nation is becoming an attractive retail market for companies globally with many regional and global FDI investors recently revealing their plans to increase capital and expand distribution networks here.

Eel porridge evokes hometown nostalgia

A warm bowl of Quang-style eel porridge with a fragrant aroma not only can win the hearts of diners, but also create nostalgia for the Quang people who live far from home.

Vietnamese banks that 'disappear' from the market

Some banks used to be very popular, with hundreds of thousands of customers, but they gradually disappeared from the market because of many reasons.

Discovering Hanoi’s famous incense making village

The craft village with a tradition of more than 100 years impresses visitors for its space that is filled with vibrant colors such as blue, red, yellow, etc. of beautifully shaped bouquets of incense.

Vietnam to reassert its position on the world coffee map

Vietnam is the world's second largest coffee exporter, but its impact on the world coffee market is not commensurate with its position, experts say.


Coffee exports to Netherlands enjoy three-digit growth

Youngest female Vietnamese Associate Professor receives Kovalevskaia Awards 2022

Prof. Dr. Le Minh Thang on March 7, 2023 was presented the 2022 Kovalevskaia Awards 2022 by Prime Minister Pham Minh Chinh.

Third pedestrian street opens in Hue City

The Hai Ba Trung Pedestrian Street was opened on Sunday evening in Hue City, becoming the third walking street in the central province of Thua Thien-Hue.

Entertainment and cultural events of the week (March 27-April 2)

Entertainment and cultural events in Vietnam's major cities on March 27-April 2.


Vietnam wins 17 prizes at International Robothon 2023

K'Duong breaks three youth weightlifting world records

Vietnamese weightlifter K'Duong broke three youth 55kg world records during the 2023 International Weightlifting Federation (IWF) World Youth Championships on March 26 which is taking place in Albania.

Struggling hoteliers seek Government support to revive from COVID-19 crisis

Small- and medium-sized hotels in HCM City are struggling with low occupancy rates and labour shortages, and are in need of support to recover from a COVID-19-induced slump, according to the municipal Department of Tourism.

Lion Championship MMA returns, first fight in Hanoi on April 1

The second season of the Lion Championship mixed martial arts will be back with great fighters and frightening fights in April.

Driftwood space launches in Hoi An

The first ever wood recycle space – driftwood village’s studio – has been launched in the ancient’s Cam Ha Commune on the most favourite bicycle riding road connecting the Old Quarter and An Bang beach.