South Korean Ambassador to Vietnam Lee Mi Yon said some businesses had reported difficulties caused by unpredictable policies. Photo: Thanh Phuong
The proposals were raised at a conference on Vietnam’s 2026 tax and customs policies for South Korean businesses, held by the Ministry of Finance in Hanoi on Wednesday.
Lee Mi Yon, South Korean Ambassador to Vietnam, said South Korea remains Vietnam’s largest foreign investor in terms of cumulative investment capital and one of its leading trading partners.
South Korean investment in Vietnam increased by approximately 160 percent from the previous year, she said.
However, some businesses have reported difficulties stemming from unpredictable policies, changes to corporate income tax incentives, and inconsistent tax enforcement across localities.
At the event, businesses called on authorities to allow at least six months to one year for companies to prepare before new decrees and circulars take effect.
Some regulations have provided excessively short transition periods, in certain cases just 15 days, making implementation difficult.
A Samsung representative proposed expanding tax incentives to help businesses increase local content in their products.
The representative also called for a more balanced distribution of incentives, rather than concentrating them on a few sectors, such as artificial intelligence and semiconductors, so that more businesses could benefit.
The electronics and display manufacturing industries are facing mounting pressure from rising global prices for semiconductor chips used in AI applications.
Businesses therefore want additional tax incentives for high-tech industries to strengthen their competitiveness.
Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consultants’ Association, called for greater consistency and predictability in the implementation of tax policies. Photo: Tuoi Tre Contributor
In response, Luu Duc Huy, deputy head of the Ministry of Finance’s Department of Tax, Fees and Charges Policy, said Vietnam had introduced various policies to promote innovation and digital transformation.
Under current regulations, high-tech businesses may qualify for a preferential corporate income tax rate of 10 percent for up to 25 years for particularly large-scale projects.
Nguyen Thi Cuc, chairwoman of the Vietnam Tax Consultants’ Association, said consistent guidance and enforcement of tax laws remained a major concern for businesses.
For multinational corporations, regulations can involve multiple areas, including value-added tax, corporate income tax, personal income tax, customs, rules of origin, and investment incentives.
When tax authorities, customs agencies or local administrations interpret and apply the same rules differently, businesses can struggle to determine their obligations and make reliable business plans, she said.
She emphasized the need to ensure consistency and predictability in the implementation of tax policies and limit situations in which different localities interpret and apply regulations differently, causing difficulties for businesses.
Koo Bon Kyung, a representative of the Korea Trade-Investment Promotion Agency, acknowledged the Vietnamese government’s efforts to improve the business environment and support foreign-invested enterprises.
He said meaningful incentives for businesses involved not only lower taxes but also a transparent and predictable business environment that safeguards technology and investment capital.
Cao Anh Tuan, Deputy Minister of Finance, recognized the contributions of South Korean businesses to Vietnam’s socio-economic growth and state budget revenue.
The Finance Ministry would continue refining policies, simplifying administrative procedures, and addressing business concerns in a timely manner, he said.
Regulations on related-party transactions and the global minimum tax would also be finalized soon.
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