The People’s Committee of Ho Chi Minh City has proposed to the Prime Minister to allow Samsung HCMC CE Complex (SEHC) to transition to an export enterprise. According to the proposal, SEHC will be exempt from import tax on raw materials, value-added tax, and only need to export 90% of its products.
Lawyer Tran Xoa commented that transitioning to an export enterprise would help SEHC reduce financial pressure and create favorable conditions for the company. However, he also believes that the Ho Chi Minh City government needs to make specific commitments to SEHC regarding job creation, supporting industry development, and tax revenue.
Mr. Do Thien Anh Tuan, Director of the Economic and Policy Research Center (VEPR), also agrees with this view. He believes that Vietnam needs to make specific commitments to major investors with numbers and percentages. If investors do not fulfill their commitments, the government will revoke incentives.
The transition of SEHC to an export enterprise is attracting public attention. This is an important decision that could impact Vietnam’s investment environment.