Simplified tax and customs procedures would attract more foreign investors to Viet Nam, said South Korean Ambassador Kim Do-huyn at a conference in Ha Noi on September 17.

Ambassador Kim said Viet Nam needed to create a more transparent and fairer tax environment for businesses.

South Korea is the largest direct investment partner in Viet Nam. According to statistics, South Korea has 6,760 projects with total registered capital of US$59 billion.

Speaking at the meeting, which was held by Viet Nam’s Ministry of Finance and the South Korean Embassy in Viet Nam, Deputy Minister of Finance Vu Thi Mai said that administrative procedures, tax policies and customs were always a top concern.

“The finance ministry is ready to listen to comments from enterprises to solve difficulties related to administrative procedures, tax and customs policies, while promoting the production and business activities of South Korean enterprises in Viet Nam," Mai said.

South Korean enterprises are an important component of the Vietnamese economy, employing over 70,000 workers and contributing about 30 per cent of the total value of Viet Nam’s exports. South Korean investors in recent years have poured money into the manufacturing, real estate, energy, mechanical and electrical fields.

According to Deputy Director of General Department of Taxation Cao Anh Tuan, South Korean enterprises had contributed from 2 to 3 per cent of total State budget revenue in the last two years.

Tuan said most South Korean businesses complied with Vietnamese tax laws, however, there were still limitations on the understanding of updated tax regulations.

Tax authorities had collected arrears and guided enterprises to comply with the law, said Tuan. — VNS