South Korean businesses urge Vietnam to allow more time for policy changes

South Korean businesses want Vietnam to provide a preparation period of at least six months, extending to one year, before implementing new decrees and circulars. They presented the request in Hanoi during a Ministry of Finance conference covering Vietnam’s tax and customs policies for 2026.

Businesses said unpredictable rules, revisions to corporate income tax incentives and differing enforcement between localities were creating difficulties. In some cases, companies had been given just 15 days to adapt to regulations.

A representative from Samsung urged authorities to broaden tax incentives to encourage greater use of local content in products. The representative also sought a wider spread of benefits across industries, instead of focusing on a handful of sectors such as semiconductors and artificial intelligence.

Responding for the ministry, Luu Duc Huy, deputy head of its Department of Tax, Fees and Charges Policy, pointed to existing support for innovation and digital transformation. He said particularly large-scale projects undertaken by qualifying high-tech businesses could receive a 10 per cent preferential corporate income tax rate for a period reaching 25 years.

Vietnam Tax Consultants’ Association chairwoman Nguyen Thi Cuc said conflicting interpretations among tax officials, customs bodies and local authorities could make companies’ obligations unclear and undermine planning. She urged more predictable and consistent application of tax rules.

Koo Bon Kyung of the Korea Trade-Investment Promotion Agency said incentives should encompass predictable, transparent conditions and safeguards for technology and investment capital, not simply tax cuts.

Deputy Minister of Finance Cao Anh Tuan pledged further policy improvements, simpler administrative processes and timely responses to companies’ concerns. He said regulations covering the global minimum tax and related-party transactions would be completed soon.