South Korean investors are concerned about Vietnam's plan to reform high-tech subsidies, fearing it could lead to higher costs and potential investment setbacks. This comes as Vietnam faces trade tensions with the U.S., with potential tariffs on electronics and a 20% duty on imports. South Korea has been a major investor in Vietnam for decades, with Samsung as its largest contributor, accounting for over a tenth of Vietnam's exports. The Korean Chamber of Commerce (Kocham) expressed worries about changes to a high-tech law, which could impact investment incentives. The revised law aims to scrap existing provisions granting high-tech companies favorable tax, duty, and land incentives, potentially increasing the tax burden on Korean investors. Samsung, a key player, is among those concerned, despite no threats to freeze investments. The Korean government and Kocham also advocate for a fair transshipment rule in Vietnam-US trade talks to ensure a stable business environment. The situation highlights the challenges South Korean investors face in a rapidly changing Vietnamese market.
