Vietnam to scrap export duty on gold jewelry

TN News

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The government is set to phase out export duties on gold jewelry from January 1 to boost sales amid low domestic demand.

The tariff is now 10 percent on jewelry of 80 percent purity and above.

Nguyen Thi Thanh Hang of the Ministry of Finance's Tax Policy Department told news website Saigon Times that abolition of the duty is aimed at encouraging businesses to export jewelry.

Jewelers have complained about low domestic demand.

Several neighboring countries have posted strong exports of jewelry after eliminating export tariffs, they said, adding that Thailand annually ships US$3 billion worth.

Nguyen Thi Cuc, general deputy director of gold behemoth PNJ in Ho Chi Minh City, said her firm's annual export of jewelry has been worth $12.5-13 million since 2011 -- when the export tax was introduced  compared to $29 million in just the first five months of 2010.

The ministry's decision has been backed by the Vietnam Gold Traders Association, which said Turkey, Dubai, and China have great demand for Vietnamese jewelry.

The State Bank of Vietnam took over import and export of gold last year.

Hang said when businesses are permitted to import and export bullion, the tariff for exported gold materials of all varieties would be 2 percent.

But she did not reveal when that is likely to happen.

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