"Vietnam Loses Intel and LG Chem Due to Insufficient Incentives... Samsung Also Partially Relocates"

Analysis of Documents from the Vietnam Ministry of Planning and Investment

The Vietnamese government analyzed that it missed opportunities to receive multi-billion dollar investments from foreign companies such as Intel and LG Chem due to insufficient incentives provided to foreign enterprises.

On the 5th (local time), foreign media reported that they obtained a document from the Vietnamese Ministry of Planning and Investment dated June 29, which contained an analysis of the reasons why Vietnam missed out on foreign investment.

The U.S. semiconductor company Intel proposed a $3.3 billion (4.5623 trillion KRW) investment in Vietnam and requested a 15% 'cash support,' but ultimately chose Poland as the business location.

LG Chem requested 30% support for investment costs related to its battery business but chose Indonesia over Vietnam, according to the Ministry of Planning and Investment.

Vietnam factory

The document also stated that the Austrian semiconductor company AT&S decided to invest in Malaysia after its support request was rejected in Vietnam, and Samsung Electronics moved some of its production to India.

The Ministry of Planning and Investment said in the document, "Recently, several large corporations are exploring investment opportunities in Vietnam, but due to insufficient regulations on investment support, they are turning to other countries."

From this year, Vietnam has implemented a global minimum corporate tax policy, which will increase the burden on foreign companies operating in the country.

The global minimum tax, designed to prevent tax avoidance, is a system that allows other countries to impose additional taxes if a multinational corporation’s income is subject to an effective tax rate lower than the minimum rate (15%) in a particular country.

The Vietnamese government is preparing support plans such as establishing a 'Vietnam Investment Support Fund' for foreign companies entering the country who face increased tax burdens.