Vietnam to let companies import gold

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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 Vietnam Gold Traders Association has been in protracted talks with the government over measures to correct the imbalance in supply and demand of gold, Huynh Trung Khanh, the association's vice chairman, said.Vietnam's government virtually took full control of imports and local bullion sales in 2012, with certain large companies allowed to import provided they repurposed it as jewelry for exports.'The government said they will start official gold imports by July or August.

Immediately reducing premiums on domestic prices is crucial, as the VGTA estimates Vietnam's gold demand to surge this year. The southeast nation is among the top 10 consumers of gold.Gold purchases are set to rise 10 percent on a yearly basis to 33 million metric tons during the first six months of this year, Khanh said in his presentation at the conference.

 

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