Wednesday, 11th October 2006 (2664 views)

Vietnam is to increase its gold imports as domestic demand for the precious metal rises, according to new reports.

The VietNamNet Bridge website says that the State Bank of Vietnam has allowed the Southern Bank to import a further tonne of gold for the second time this year.

The increases follows a decision by the country's ministry of finance in August to lower the rate of tax for imported gold ingots from 1 per cent to 0.5 per cent.

This came at a time when gold prices were are their peak, although they have since fallen on plummeting crude oil rates.

Just five commercial banks and a handful of gold trading companies are allowed to import gold into Vietnam, and some analysts have accused them of holding onto their stock in order to push up domestic prices which are well above international levels.

According to World Gold Council figures, Vietnam has imported 50 tonnes of gold so far this year to feed domestic demand.

 

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