S.Korean businesses seek to expand investment in Ho Chi Minh City, urge removal of bottlenecks

The concerns were raised at a dialogue jointly organized by ITPC and the South Korean Consulate General in Ho Chi Minh City on Thursday, which brought together city leaders and South Korean businesses.

At the event, the South Korean companies called for more favorable policies to support domestic production and strengthen local supply chains.

Kim Nyoun Ho, chairman of the Korea Chamber of Business in Vietnam (KOCHAM), said around 10,000 South Korean businesses are operating in Vietnam, including approximately 2,000 KOCHAM members.

Many face difficulties obtaining value-added tax (VAT) refunds, particularly in cases involving transactions with third-party partners that have ceased operations, he said.

Some businesses also face corporate income tax issues, prompting Kim to call for clearer guidance and solutions from the authorities to help them maintain confidence in their operations.

He also urged Vietnam to introduce more favorable policies to attract South Korean investment in the production of raw materials, components, and equipment, helping strengthen local supply chains.

Pham Van Dai, representative of South Korea's Hyosung Group in Vietnam, said the group had invested around US$5 billion in Vietnam since 2007 through about 10 projects, generating annual revenue of around $3.5 billion in recent years.

One such project is a biotechnology plant in Phu My, which Hyosung began developing in 2024 with an initial investment of $250 million. 

The total investment is expected to exceed $800 million upon completion of all three phases.

The plant produces Bio-BDO, an industrial material made from sugarcane and raw sugar as alternatives to fossil-based feedstocks. 

Vietnam is the first country Hyosung has selected to deploy this technology on a large scale, Dai said.

The plant has produced its first products as it prepares to begin operations. 

Despite the investor spending around two years studying the requirements and preparing the necessary documents, the plant has yet to be recognized as a high-tech facility.

Dai said the company had encountered difficulties navigating regulations covering investment, the environment, technology, and agriculture.

Hyosung urged the city to appoint a focal agency to help it complete the procedures required to qualify for high-tech investment incentives, paving the way for the project's next phases.

City responds to business proposals, outlines investment support

According to ITPC, the city received 15 proposals from South Korean businesses before the dialogue, covering taxation, customs, labor, immigration, and investment procedures.

The proposals were forwarded to 13 relevant agencies, all of which had provided written responses by October 12, ITPC said.

In response to Hyosung's concerns, representatives of the municipal Department of Science and Technology and the Department of Industry and Trade outlined support policies for high-tech projects, including research and development assistance, import tax incentives for machinery and materials used in research, and interest-rate support for loans.

The city's Department of Agriculture and Environment also suggested that Hyosung consider partnering to develop at least 3,000 hectares of high-tech agricultural raw-material production areas or linking up with sugarcane-growing regions in other localities to secure feedstock for the project.

Speaking at the dialogue, deputy chairman of the Ho Chi Minh City administration Nguyen Cong Vinh said the city was targeting double-digit economic growth and focusing on attracting investment in semiconductors, artificial intelligence, the digital economy, clean energy, and an international financial center.

He called on municipal departments and agencies to address businesses' concerns directly, designate responsible agencies and focal points, propose solutions, and set clear deadlines for resolving each issue.

South Korean Consul General in Ho Chi Minh City Jung Jung Tae said helping businesses already operating in Vietnam feel confident about maintaining and expanding production was the most convincing message the country could send to potential investors.

According to ITPC, South Korea ranked first in Ho Chi Minh City by number of investment projects as of the end of September 2026, with more than 3,400 projects and total registered investment capital exceeding $15.8 billion.