Samsung Ho Chi Minh City receives over $22mn tax refund after 3-year delay

The issue came to light during a late-March dialogue between Ho Chi Minh City officials and the Korean business community, Kim Nyoun Ho, chairman of the Korean Chamber of Commerce (KoCham) in Vietnam, told Tuoi Tre (Youth) newspaper.

At the meeting, a Samsung SEHC representative raised concerns about the company's prolonged cash flow challenges due to delayed tax refunds.

Despite multiple formal requests and consultations with the General Department of Taxation, the General Department of Customs, and the Ministry of Finance, the company had not received a clear timeline for repayment.

Vo Van Hoan, vice-chairman of the Ho Chi Minh City People’s Committee, urged relevant agencies to escalate the issue to the Ministry of Finance for expedited resolution.

He also advised Samsung SEHC to formally submit documents to the city’s administration by June if the matter remained unresolved.

According to KoCham Chairman Kim Nyoun Ho, the Ministry of Finance responded swiftly after the dialogue.

“The [Vietnamese] government assured that if documents were submitted by March 28, the refund would be processed within five working days. Samsung filed on time, and the full VAT amount has now been reimbursed,” Kim told Tuoi Tre.

Samsung SEHC currently employs about 5,200 workers and manufactures home electronics like TVs, refrigerators, and washing machines.

The company recorded revenue of $4.9 billion last year—92 percent from exports—and projects $5.6 billion for 2025.

While the VAT issue has been resolved, Kim said many of the Korean business community’s concerns raised in the dialogue involve broader regulatory and policy challenges, including taxes, licensing procedures, and investment incentives.

KoCham continues to engage with Vietnamese authorities through regular dialogues.

Call to expand Korean International School in Ho Chi Minh City

KoCham has also petitioned the Vietnamese government to speed up the licensing process for expanding the Korean International School in Ho Chi Minh City.

The school currently serves about 2,100 students and employs over 250 staff across all levels, from kindergarten to high school.

Due to classroom overcrowding, roughly 200 students are placed on a waitlist each year.

Average class sizes exceed Korean education standards—35 students in elementary and 32 in secondary classes, surpassing the standard by more than 10.

While local authorities have offered a one-hectare plot of land near the school for expansion, bureaucratic delays have stalled progress.

Once completed, the expansion would raise student capacity to 3,000.

“This expansion is not just about infrastructure—it’s about providing educational stability for Korean families living in Vietnam,” Kim emphasized.

“Lengthy administrative delays could send a discouraging message to the Korean community here. We sincerely hope for continued cooperation and timely support from the Vietnamese government to resolve current hurdles.”