SINGAPORE - Vietnam is expected to allow companies to import gold for the first time in over a decade, as it aims to bridge the widening gap between local prices and international benchmarks, an industry official told Reuters.
"The government said they will start official gold imports by July or August. We hope that by July they will allow gold companies to import directly," Khanh said on the sidelines of the Asia Pacific Precious Metals conference. Immediately reducing premiums on domestic prices is crucial, as VGTA estimates Vietnam's gold demand to surge this year. The southeast nation is among the top 10 consumers of gold.
"The key reasons for this strong retail investment demand were the sharp decrease in saving interest rates, the frozen real estate and the constant devaluation of the national currency versus the U.S. dollar," Khanh said.A sharp surge in demand for gold has also lead to higher smuggling, especially from neighbouring Cambodia, Khanh said, adding that it made immediate policy action critical.