>> Vietnam grants new gold import licenses, quotas
>> State Bank: High gold prices do not equate to shortage
The Vietnamese Ministry of Finance has issued a circular to increase gold export tax rates to 10% from the current zero beginning January 1, 2011.
Raising gold export tax to regulate the domestic market
Under the circular, the tax level will be applied to gold materials under Group 8718; gold bars and powdered gold with purity of under 99.99% as well as jewelry with high gold content.
The move is aimed to limit and stabilise gold exports to regulate the domestic market which experienced record-high gold price hikes of up to VND38.2 million (USD1,910) per tael in November.
Earlier, the ministry proposed an export tax of 20% on gold and also granted gold import quotas for a number of businesses and banks.
On the morning of December 2, prices of gold bars were at VND36.3 million (USD1,815) per tael. Currently, gold import quotas of many gold businesses as well as banks are still in place. Therefore, the local gold market has witnessed only slight changes recently.