Korean Tech Giant “Splurges” Billions to Pay Taxes

Samsung, the Korean tech giant and the largest foreign investor in Vietnam, has “released” an income tax expense of up to $316 million (429.8 billion won) to prepare for the payment of the global minimum tax in Vietnam. This is a “bold” move by Samsung, affirming its commitment to comply with Vietnam’s latest tax regulations.

Samsung SDI Also “Joins the Fray” with a $2 Million Tax

Not only Samsung Electronics, but its “sibling” Samsung SDI, the group’s battery manufacturing arm, is also “ready” with a $2 million tax (2.84 billion won) to meet the global minimum tax at its Bac Ninh factory.

Vietnam “Opens Its Doors” to Welcome FDI “Eagles” with an Investment Support Fund

Amid concerns that the global minimum tax will reduce Vietnam’s FDI attractiveness, the government has issued Decree 182/2024/ND-CP on the establishment, management, and use of the investment support fund.

• This fund will support up to 50% of initial investment costs for R&D projects in the semiconductor and AI sectors.
• Supported businesses must have no tax or budget debts.
• R&D projects must have a positive impact on the innovation ecosystem.

The FDI Attraction “Race”: Vietnam “Competes” with Rivals

The global minimum tax is considered a major “hurdle” in attracting FDI to Vietnam. To compete with countries in the region, Vietnam needs to diversify its investment incentive forms, not only relying on tax exemptions but also focusing on cost incentives.

Samsung “Front-Runs” the Global Minimum Tax: A Positive Signal for Vietnam

Samsung’s “splurge” of hundreds of millions of dollars to prepare for the payment of the global minimum tax is a positive signal, showing that Vietnam remains an attractive destination for major investors.