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Mining industry

Vietnam Gold Traders Association Seeks Reduction of Export Tax

Strategic Insights

— 1 min read

The Vietnam Gold Traders Association has requested the Ministry of Finance to lower the export tax on gold and gold jewelry from 10% to zero, citing concerns over the nation's growing trade deficit and potential smuggling. The association argues that the high tax rate is discouraging exports and making Vietnamese jewelry uncompetitive on the global market. The proposal comes after the Ministry of Finance increased the tax rate from zero to 10% in January 2023 to stabilize the domestic gold market.

Key Takeaways:

  • The Vietnam Gold Traders Association has asked the Ministry of Finance to reduce the export tax on gold and gold jewelry from 10% to zero, citing concerns over the trade deficit and potential smuggling.
  • The association argues that the 10% tax rate is discouraging exports and making Vietnamese jewelry uncompetitive on the global market.
  • The tax rate is imposed on gold of purity between 99 and 99.99% and gold jewelry of above 99% under Circular No 184.
  • The industry recognizes that no gold achieves full 100% purity, making the 99.99% purity threshold arbitrary.
  • Phu Nhuan Jewelry, Vietnam's leading gold jewelry exporter, is exempt from the tax hike because it only exports gold jewelry of lower purity.
  • Asia Commercial Bank's gold trading centre is also unaffected by the tax, as it only exports gold bars of 99.99% purity.
  • Gold prices fluctuated between VND35.5-35.59 million (US$1,690-1,694) per tael, and Kitco spot gold prices gained slightly to $1,367.90 per ounce.
  • Vietnam imported nearly 71 tonnes of gold over the past 12 years, according to recent figures from the State Bank of Vietnam.

Statistics:

  • 10%: The current export tax rate on gold and gold jewelry imposed by the Ministry of Finance.
  • $1,690: The price of gold per tael in Vietnam, equivalent to VND35.5-35.59 million.
  • $1,367.90: The Kitco spot gold price per ounce.
  • 99.99%: The purity threshold for gold subject to the 10% export tax under Circular No 184.
  • 71 tonnes: The amount of gold imported by Vietnam over the past 12 years, according to the State Bank of Vietnam.

Sources:

Asia Pulse, "Vietnam Gold Traders Association Seeks Reduction of Export Tax"

(Vietnam News Agency, 2002-01-20)

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