Wednesday, 30 April 2008

How much gold has Vietnam imported

How much gold does Vietnam import?
17:14' 30/04/2008 (GMT+7)
VietNamNet Bridge – Vietnam imports up to 95% of its demand for gold but there is no answer to the question: “How many tonnes of gold has the country imported?”
For several weeks the gold price fell continuously and stayed at low levels, and then it slightly increased in the world market on April 28, from US$881-883/oz to $891.2 - 983.1/oz. Immediately, the gold price in the domestic market went up slightly. Saigon Jewelery Company’s gold sold for VND17.85 million/tael and it bought at VND17.85 million/tael.
Unmeasured developments
Since early 2008, the global and local gold market has fluctuated strongly while Vietnam’s CPI has remained at a very high level, 11.6% in the past four months, so a large volume of money has been invested in gold.
According to some released reports, more than 82 tonnes of gold have been imported into Vietnam in the past four months, worth $1.56 billion.
In the past four months, the gold price has changed very powerfully, occasionally up to $1,000/oz in the international market and VND19.5 million/tael in the Vietnamese market.
According to the General Statistics Office, the gold price on April 2008 fell by 2.14% compared to March 2008 but it grew by 15.92% over December 2007, 41.02% over April 2007 and 112.99% over 2005.
The price of gold reached its peak on March 17, 2008 when SJC gold was sold for VND19.40 million/tael, the highest level in Vietnam so far; but it has gradually decreased to VND17.8 million/tael at present.
According to the Saigon Jewelry Company, since the SJC gold brand was born in 1988, 11 million taels of SJC gold have been sold in the market. One million SJC taels is equivalent to 37.5 tonnes of gold. Thus, the company has sold around 412.5 tonnes of gold, worth $12.3 billion. In addition, a large volume of gold has been imported to make jewelry. Some experts say around 180-200 tonnes of gold have been processed into jewelry.
Some others say the volume is just 100-120 tonnes, while others say the total volume of pieced gold and gold for processing jewelry imported into Vietnam and other imports totals around 200 tonnes. Thus, the total volume of gold imported by SJC and other firms is around 580-620 tonnes, equivalent to $17.5-18.5 billion.
According to the Vietnam Gold Business Association, commercial banks have raised capital in gold totalling 1-1.5 million taels, equivalent to VND18-24 trillion, compared to VND5 trillion worth of gold two years ago. This volume is modest compared to the volume of gold held by Vietnamese people.

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