Vietnam to drop export duty on gold jewelry

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Hanoi-gold-shopThe Vietnamese government is set to phase out export duties on gold jewelry from January 1 to boost sales amid low domestic demand. Presently, the tariff is 10 per cent on jewelry of 80 per cent purity and above.

Nguyen Thi Thanh Hang of the Ministry of Finance’s Tax Policy Department told the Saigon Times that the abolition of the duty is aimed at encouraging businesses to export jewelry as jewelers kept complaining about low domestic demand.

Several neighbouring countries have posted strong exports of jewelry after eliminating export tariffs, they said, adding that Thailand annually ships $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.

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Reading Time: 1 minute

The Vietnamese government is set to phase out export duties on gold jewelry from January 1 to boost sales amid low domestic demand. Presently, the tariff is 10 per cent on jewelry of 80 per cent purity and above.

Reading Time: 1 minute

Hanoi-gold-shopThe Vietnamese government is set to phase out export duties on gold jewelry from January 1 to boost sales amid low domestic demand. Presently, the tariff is 10 per cent on jewelry of 80 per cent purity and above.

Nguyen Thi Thanh Hang of the Ministry of Finance’s Tax Policy Department told the Saigon Times that the abolition of the duty is aimed at encouraging businesses to export jewelry as jewelers kept complaining about low domestic demand.

Several neighbouring countries have posted strong exports of jewelry after eliminating export tariffs, they said, adding that Thailand annually ships $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.

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