return icon

Samsung once again haggles over investment incentives

VietNamNet Bridge - Samsung seems to take full advantage of its status as a big investor to claim unprecedented investment incentives.
VietNamNet Bridge - Samsung seems to take full advantage of its status as a big investor to claim unprecedented investment incentives.


Samsung has recently asked for three privileges which have not been given to any investors. It claimed the corporate income tax exemption for 30 years the day it makes a profit and asked for $15.5 million worth of tax for a project in HCM City.

Moreover, Samsung said it wants to have a specialized port at Noi Bai Airport to facilitate the imports and exports of the company.

Some analysts commented that Samsung knows that it is a large investor which Vietnam wants to attract; therefore, it always tries to haggle over investment incentives to minimize its investment rates.

To implement Samsung Electronics CE Complex project capitalized at $1.4 billion, Samsung has demanded an import tax exemption on import building materials, import tax exemption on  materials and components to serve production for five years when the project begins, or until the day when Vietnam has to cut tariffs to zero percent as committed under ATIGA (ASEAN Trade in Goods Agreement).

As for SEVT2 project in Thai Nguyen province with total investment capital of $3 billion, Samsung claimed  preferential corporate tax rate of 10 percent for 30 years the day it makes profit;  corporate income tax exemption for four years the year SEVT2 has taxable profit, and a 50 percent tax reduction in the next nine years.

The investment incentives demanded by Samsung for its project in Bac Giang once stirred up the public. However, ignoring the protest from the public, local authorities still decided to satisfy Samsung’s requests, reasoning that they hoped Samsung’s project would serve as an impetus for the development of the local economy.

Samsung’s continued claims have raised big worries among the public, which has called on the government to restrict such requests by big foreign investors.

A report of the Central Institute of Economic Management (CIEM) released on June 29 warned that once investment incentives are granted,other enterprises will demand special investment incentives at higher levels. 

What will Vietnam gain if it accepts special preferences for  Samsung?

It is obvious that state budget revenue will be affected because of the expected low tax collection from Samsung.

In 2012, Samsung paid VND680 billion in tax to the state, including contractor withholding taxes, after deducting VND2.52 trillion worth of tax remission. 

Vietnam hopes that the presence of Samsung in Vietnam would allow Vietnamese  enterprises to join Samsung's global production chain. 

However, Vietnam cannot enjoy this because of the limited capability of Vietnamese enterprises.



Authority maintains tough stance on safety violations on Hanoi’s “railway café street”

The Vietnam Railway Authority has insisted that it will take a hard line on railway traffic safety violations along Hanoi’s popular "railway café street" sketching across the inner districts in its recent report to the Ministry of Transport.

Foreign hi-tech firms expand investment in Vietnamese market

Molex, the world’s leading supplier of connectors and interconnect components, has unveiled its ambitions to expand its existing manufacturing plant in the Vietnamese market by developing its plant in Hanoi.


Hai Phong lures more than 1.24 billion USD in first nine months

Vietnam rakes in US$16.05 billion from tourism in nine months

Vietnam earned some 394.2 trillion VND (16.05 billion USD) from tourism in the first nine months of this year, equivalent to 78% of the figure recorded in 2019 before the COVID-19 pandemic broke out.


Vietnam invests in 10 energy technologies

Vietnamese poetry collection published in Canada

A poetry collection from five female translators based in Hanoi, entitled Ngũ Sắc Ánh Sáng (5 Sights of Light), has been introduced to Canadian readers by Ukiyoto Publishing.

Multi-billion thermal power project needs more capital

The Ministry of Industry and Trade (MOIT) has asked for ministries' opinions on solutions to problems related to the balance sheet of the Vung Ang 1 thermal-power plant.

The best September photos on VietNamNet

Hot air balloons with the Vietnamese national flag of 1,800m2 on the banks of the Saigon River, Typhoon Noru making landfall in Quang Nam Province, the roofs of many houses being blown away...

BSR to expand Dung Quat Oil Refinery

The Ministry of Industry and Trade (MOIT) has asked Binh Son Refining and Petrochemical JSC (BSR) to clarify some issues related to its project on expanding Dung Quat Oil Refinery.

Dutch conductor to lead concert at Opera House

Conductor Leon Bosch from the Netherlands will lead a concert featuring masterpieces by European composers at the HCM City Opera House on Saturday, October 8.

‘578’ to represent Vietnam at Oscars

An action film starring Miss Universe Vietnam 2018, H'hen Niê, 578: Phát Đạn Của Kẻ Điên (578: Magnum), has been selected as Vietnamese representative at the 95th Oscars, 2023.

USD surges to VND24,000, US$1.7 billion withdrawn from circulation

The State Bank of Vietnam (SBV) withdrew nearly VND41 trillion ($1.7 billion) through open market operations as the US dollar rose to over VND24,000 on September 26-30, 2022.

HCM City to build a series of new traffic projects

HCM City is speeding up procedures to start the construction of key traffic works at gateways by the end of the year, according to HCM City's Department of Transport.

Burning garbage in Hanoi threatens residents' health, property

There have been consecutive fires caused by people's poor awareness, who were burning garbage and straw in residential areas, causing fires recently in Hanoi.

New cargo airline still waiting for license

After the Prime Minister agrees on the establishment of IPP Air Cargo, the Ministry of Transport (MOT) will implement procedures to grant a license to the air carrier, according to MOT Deputy Minister Le Dinh Tho.