Samsung SEHC factory boss complains about not getting tax refund of more than 580 billion VND for 3 years

Mr. Kwon Choon Ki, General Director of Samsung SEHC factory (HCMC) - Photo: HONG PHUC

Mr. Kwon Choon Ki, general director of Samsung SEHC factory (HCMC), said that this enterprise has not received a value-added tax refund of more than VND582 billion in the past three years, causing the company to face difficulties in business operations.

This information was presented by Mr. Kwon Choon Ki at the Dialogue Conference between Ho Chi Minh City leaders and Korean enterprises in 2025, held this morning (March 25).

Samsung SEHC factory was established in Ho Chi Minh City High-Tech Park in 2016.

This enterprise, which has about 5,200 employees, specializes in manufacturing household electronic products such as televisions, refrigerators, washing machines, vacuum cleaners, etc.

In 2024, the factory's revenue will reach 4.9 billion USD, of which exports account for nearly 92%.

This year, the company aims for revenue of 5.6 billion USD and export turnover accounting for about 95% (estimated at 5.3 billion USD).

With a high export ratio of over 90%, Samsung SEHC factory was approved by the Vietnamese Government to convert into an export processing enterprise (EPE) from May 2021.

However, after converting into an export processing enterprise, from June 2021 to September 2024, the total amount of value-added tax not yet refunded is about 22.9 million USD, equivalent to about 582.1 billion VND.

According to Mr. Kwon Choon Ki, this is causing the company to have difficulty in business operations.

The leaders of this business have discussed this issue many times in meetings with the Ho Chi Minh City Tax Department, the Ministry of Finance, the General Department of Customs, and the General Department of Taxation.

However, three years have passed and the company has yet to receive a response with specific instructions on how to resolve the issue.

Mr. Kim Nyoun Ho, Chairman of the Korean Chamber of Commerce in Vietnam (KOCHAM), said that not only Samsung but many other businesses also reported the slow VAT refund related to "on-site export" activities for raw material suppliers.

Currently, supporting enterprises in Vietnam are operating by paying 8-10% VAT when importing raw materials. After processing, they will supply to export enterprises with a VAT rate of 0%.

However, the postponement of VAT refunds is putting domestic supporting businesses at a disadvantage in price competition with foreign importers.

Responding directly to this issue at the dialogue, Mr. Giang Van Hien, Deputy Head of the Tax Department of Region II, said that he had received this issue from Samsung and was coordinating with relevant agencies to resolve the problem.

The Ministry of Finance has also issued Decision 422 to urgently consider handling tax refunds for Samsung SEHC and businesses facing difficulties on this issue.

On March 14, tax authority leaders met with company representatives at the tax authority headquarters to discuss and complete necessary procedures.

In addition, Mr. Giang Van Hien said that the tax department also said that recently, some businesses have taken advantage of the tax refund policy to buy and sell invoices, illegally profiting. This agency is coordinating with the authorities to handle this matter.

"To solve this, we must have a process to review whether businesses are actually operating or buying invoices from businesses that were established not for business purposes but just to buy and sell invoices, taking advantage of the situation and causing harm to businesses that need tax refunds if we do not review carefully," said Mr. Hien.

Samsung is a leading Korean corporation, established a television factory in Ho Chi Minh City since 1995.

Currently, Samsung Vietnam has 6 manufacturing plants, 1 sales entity and 1 research and development center.

In 2024, the group's revenue in Vietnam will reach about 62.5 billion USD, of which export turnover will reach 54.4 billion USD (accounting for 14% of the country's total export turnover).

Samsung's total accumulated investment capital in Vietnam is estimated at 23.2 billion USD, with about 84,000 employees working.

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Source: https://tuoitre.vn/sep-nha-may-samsung-sehc-than-phien-ba-nam-khong-duoc-hoan-thue-hon-580-ti-dong-2025032509323852.htm