In a significant boost to its economy, Ho Chi Minh City has seen an impressive influx of investment from South Korean businesses totaling $5.5 billion. This investment marks a pivotal moment in the partnership that has been thriving for over 30 years, especially since the two nations elevated their relationship to a Comprehensive Strategic Partnership in December 2022.
According to Ho Chi Minh City Vice Chairman Vo Van Hoan, this economic collaboration is set to strengthen ties between the two nations even further. Currently, South Korea represents one of the city’s top partners in trade, investment, and tourism, with over 80,000 residents and more than 2,000 South Korean enterprises operating in the region.
As of January 31, 2025, South Korea ranks as the third-largest foreign investor in Ho Chi Minh City, operating 2,286 projects that account for the significant investment mentioned. This influx of capital is deemed vital for the city’s growth and serves as a bridge to bolster connections between Vietnam and South Korea.
During a recent conference, Hoan emphasized the importance of providing a conducive environment for foreign businesses, particularly those from South Korea, navigating the local regulatory landscape. He stated, “In the context of the city implementing various solutions to support businesses, attracting investment and recovering economic growth, the Ho Chi Minh City government always strives to ensure a politically stable social environment.”
The Vice Chairman expressed hope that this conference and others would lead to new models of cooperation that align with each side's needs and strengths, especially in investment, trade, and tourism.
Furthermore, he underlined that the city would continue to support South Korean firms by fostering policies and advantages that help these businesses thrive. The success of these enterprises will, in turn, fuel further improvements in Ho Chi Minh City’s investment climate.
At the event, South Korean Consul General Shin Choong Il lauded the conference’s significance in creating opportunities for South Korean businesses to express their challenges and seek resolutions. He expressed optimism that the gathering would spark substantial developments for both Ho Chi Minh City and the South Korean business community.
However, challenges remain, particularly regarding tax refund delays for Samsung HCMC CE Complex, which has been awaiting a $22.9 million VAT refund dating back to June 2021. The company raised concerns that despite transitioning to an export processing enterprise by May 1, 2024, the refund process is still unresolved.
In response to this issue, Giang Van Hien, Deputy Head of Region II Tax Department, assured that the Ministry of Finance is aware and actively addressing the situation. On February 20, 2025, the ministry issued Notification No. 197/TB-BTC, which called for a cooperative effort among relevant agencies to expedite the resolution of VAT refunds.
On February 28, 2025, the General Department of Taxation further clarified their stance with Notification No. 246/TB-TCT, addressing Samsung's concerns specifically by facilitating the ongoing resolution of their refund.
Moreover, a meeting took place on March 14, 2025, during which tax officials and Samsung leaders discussed the status of the VAT refund and the process of handling it.
In a separate matter regarding a project by CJ Foods, local authorities addressed issues related to land use rights and housing ownership for their Hiệp Phước factory located in Nha Bè District. The Department of Finance has been involved in discussions with relevant parties to ensure compliance, showcasing a commitment to facilitating investment in the region.
Details have also emerged regarding a financial obligation of $68.75 million related to the Nhon Duc - Phuoc Kien New Urban Area project. The Department of Finance issued relevant notices related to the financial responsibilities, ensuring clarity in the regulatory framework for stakeholders involved.
In light of these ongoing discussions, the Vice Chairman urged all local authorities to stay proactive in addressing the challenges facing the business community, particularly those from South Korea. Ensuring timely resolutions to their needs is crucial in fostering a more welcoming business environment.
Ho Chi Minh City's commitment to enhancing its investment climate can be seen as part of a broader strategy to position itself as a prime destination for international businesses. The city recognizes the immense potential that comes from strong partnerships like that with South Korea and is dedicated to nurturing this relationship.
As South Korean firms continue to contribute significantly to the local economy, the emphasis remains on creating a favorable landscape that encourages innovation and collaboration. The hope is that through ongoing dialogue and dedicated support, Ho Chi Minh City will not only grow economically but also solidify its reputation as a hub for foreign investments.
