Tuesday, 24th January 2006 (3347 views)

Vietnam will let commercial banks trade gold in overseas accounts in a bid to increase gold exchanges between domestic and foreign outfits.

Under the new rules, both commercial banks and gold trading firms can trade the yellow metal internationally as a financial asset.

Commercial banks wishing to trade abroad must have a gold deposit mobilisation exceeding 500 kilograms and equity of more than 100 billion Vietnamese dong.

They must also have adequate accounting and risk management systems and at least a year's experience importing or exporting gold.

The government made the move to make it easier for gold to be swapped between Vietnam and foreign countries and bring local prices in line with world markets.

It is also hoped the international trading experience gained by commercial firms will give domestic traders more financial options.

In a move that would further liberalise the local gold market, Vietnamese officials have announced that the country may halve import tax on gold bullion to 0.5 per cent.

The Vietnamese gold market appears to be booming with 40 tons of gold imported in the first seven months of 2005 compared to 65 tons in the whole of 2004.

 

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