|The operation of the first bonded warehouse to deal in gold will have a positive impact on the domestic gold trade. (Photo:TK)|
Hoping to stabilize gold prices, Viet Nam’s first gold warehouse, operated by the Gold and Gemstone Company under the Bank for Agriculture and Rural Development of Vietnam (Agribank), opened Wednesday.
"Along with the Finance Ministry’s decision to reduce gold import taxes, the bonded warehouse will help stabilize gold prices in Viet Nam," said Mr. Nguyen Thanh Truc, Director of the Agribank Gold and Gemstone Company, the investor backing the country’s first gold bonded warehouse.
"As import tax rates are cut to 0.5% on pieced gold, the price for one tael in the Vietnamese market will fall by around VND60,000," Mr. Truc said.
Gold traders said that the reduction of gold import taxes and the operation of the first bonded warehouse to deal in gold will have a positive impact on the domestic gold trade.
The warehouse allows foreign banks, individuals and companies involved in the gold trade to deposit and perform transactions with partners in gold via the bonded warehouse. Receipt of gold will take just one day compared to the 2-4 days taken in the past.
Whenever demand for gold rises against available supply, local companies often import gold to stabilize the market, but imports are often late, as transport is a lengthy procedure.
"With this bonded warehouse, they only need to place orders in the morning and they can receive gold in the evening," said Mr. Truc.