Vietnamese businesses import 10 tonnes of gold ahead of schedule

Vietnamese businesses and banks have finished importing about 10 tonnes of gold ahead the December 30 schedule given by the State Bank of Vietnam.

Of the sum, Saigon Jewelry Holding Co. (SJC) imported 1 tonne of gold. SJC Deputy General Director Truong Cong Nhon said the gold amount is still in the company’s stock and can ease high demand for investors and people.

A representative from Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) said the import has helped to improve its gold supply.

Nguyen Thi Cuc, Deputy General Director of Phu Nhuan Jewelry Company (PNJ), said PNJ completed the import a week ago. She added that, “With the relatively high disparity between domestic and world gold prices and the exemption of gold import taxes from November 12, enterprises can benefit from the gold import.”

Cuc, however, noted that it is difficult to bring domestic gold prices closer to the world level despite the improved supply and lower demand at the end of the year. The disparity of between VND400,000 (USD20) to VND500,000 (USD25) per tael would be still maintained when USD prices in the free market in Vietnam have remained high, she said.

According to Mrs. Cuc, the world gold market would be more stable in early 2011 due to forecasts about U.S. economic improvements and gold prices might not come back to the record high of USD1,430 per ounce in December 2010. Nevertheless, Vietnam’s gold prices could not totally follow the global trend if the USD supply is not improved.

On the morning of December 22, a tael of SJC-branded gold were being bought at VND35.81 million (USD1,790) and sold at VND35.91 million (USD1,795). The buying price of Bao Tin Minh Chau-branded gold bar was at VND35.82 million per tael and selling price was at VND35.92 million per tael, up VND2,000 (USD0.1) against the afternoon of December 21.

After a sharp increase in gold prices hitting VND38.2 million (USD1,910) per tael on November 9, the State Bank of Vietnam (SBV) allowed several banks and firms, including Asia Commercial Bank (ACB), Vietnam Export Import Commercial Joint-Stock Bank (Eximbank), Sacombank, VietABank, SJC and PNJ, to import gold.

Earlier, on October 7, the SBV also issued gold import quota licenses for a total of 3 tonnes during the license validity period until October 12.

Vietnam Daily News - Source: DTinews