đ§What if Vietnam opens its doors to gold imports after a decade-long hiatus?đĄ
đBig news from Vietnam! For the first time in over ten years, the country is set to allow companies to import gold. This move aims to bridge the growing gap between local and international gold prices.
đŁ Huynh Trung Khanh, vice chair of the Vietnam Gold Traders Association (VGTA), revealed that the government plans to start official gold imports by July or August. This marks a significant policy shift from the tight control the central bank has maintained over gold imports since 2012.
đ€ Why the change? Despite efforts like holding auctions and permitting four local banks to sell gold, domestic prices remain high compared to global rates. VGTA's push for this policy change comes as Vietnam's gold demand is predicted to surge this year.
đ Khanh shared that gold purchases are expected to rise by 10% in the first half of the year, reaching 33 million metric tons. Retail buyers, seeking to preserve wealth amid economic uncertainty, are driving this demand. Factors like low savings interest rates, a stagnant real estate market, and the devaluation of the national currency have all contributed to this gold rush.
đš The surge in demand has also fueled smuggling, especially from Cambodia. This underground market highlights the urgent need for policy changes. VGTA and the World Gold Council are collaborating with the central bank to establish a national gold exchange, aiming to stabilize the market.
đŹ What do you think about Vietnam's move to open gold imports? Will it stabilize prices or fuel more demand? Comment below and donât forget to like and subscribe for more updates! đąđ
