|The State Bank of Viet Nam sold all 15,000 taels of gold offered in the 64th auction to 11 credit institutions at VND37.28-37.29 million (US$1,775-1,775.7) per tael yesterday.— File Photo
HA NOI (VNS) — The State Bank of Viet Nam sold all 15,000 taels of gold offered in the 64th auction to 11 credit institutions at VND37.28-37.29 million (US$1,775-1,775.7) per tael yesterday.
Gold prices declined slightly by VND60,000 (nearly $3) per tael on local markets when the Saigon Jewellery Company (SJC) posted a rate of VND37.25-37.35 million ($1,773-1,778) on its website at 3pm.
Meanwhile the kitco.com trading floor listed the price at $1,289 per ounce, or $1,564 per tael, leaving prices in Viet Nam $214 per tael higher than global rates.
Since March 28, SBV, the only gold importer in Viet Nam, has sold about 1.65 million taels of gold at its auctions.
VAFI calls for a special consumption
The Viet Nam Association of Financial Investors (VAFI) called for a special consumption tax on gold, suggesting a rate of 20 per cent for gold and gold jewelry purchasing.
The association said gold and gold jewelry trading should be added to the list of products on which consumption tax is imposed, which includes beverages, beer, cars and automobiles, as gold and gold jewelry are also luxury goods that need to be under control.
The tax would only be applied to the buying side. People were encouraged to sell their gold to the State Bank of Viet Nam with no tax.
VAFI said this was the only way to prevent the "goldisation" of the economy, which refers to people's propensity to use gold instead of money.
VAFI stated that the State Bank of Viet Nam's gold auctions could not solve the problem but would only benefit a few gold trading companies while ordinary buyers suffered losses.
VAFI predicted its solution would save billions, bringing another $30 billion to make the $60 billion forex reserves and improving the Vietnamese economy. — VNS