After 13 years of not being allowed to import gold, VGTA proposes to remove gold jewelry from the conditional business sector.

(NLDO) – VGTA proposes to remove the production, processing and trading of gold jewelry from the list of conditional business lines.

The Vietnam Gold Traders Association (VGTA) has just sent a document to the National Assembly Chairman proposing to remove conditional business lines for the gold industry in the draft Investment Law (amended).

Specifically, VGTA proposed to consider removing the production, processing and trading of gold jewelry and fine art; and the export and import of raw gold for the production of gold jewelry and fine art from the list of conditional business lines.

Clause 1, Article 7 of the draft Investment Law stipulates that a conditional investment and business line is a line that must meet necessary conditions for reasons of national defense, security, social order and safety, social ethics, and public health. Meanwhile, according to Appendix 4 of the Investment Law, it states: "Gold trading is a conditional investment and business line".

According to VGTA's calculations, the demand for gold as raw material to produce gold bars and jewelry is about 50 tons/year on average. Photo: Tan Thanh

VGTA believes that this provision is not consistent with the provisions of Clause 1, Article 7 of the Investment Law, nor is it consistent with the reality of gold trading activities. While the National Assembly session is taking place, in the draft amended Investment Law, "gold trading" activities are not included in the list of conditional business lines for reduction.

According to current regulations, gold trading activities include production and trading of gold bars; production and trading of gold jewelry and fine arts; gold import and export activities and other gold trading activities...

"Of the above activities, only the production and trading of gold bars, gold derivative products and gold trading floors can be specified in the list of conditional business lines.

The remaining activities such as manufacturing, gold jewelry, fine arts; trading in gold jewelry, fine arts; importing and exporting raw gold for gold jewelry and fine arts production do not affect national defense, security, social order and safety, social ethics, and community health" - VGTA representative argued.

According to VGTA's calculations, the demand for gold as raw material for producing gold bars and jewelry is on average about 50 tons/year, equivalent to about 5 billion USD/year (about 420 million USD/month).

For over 13 years, gold jewelry manufacturing and trading enterprises have not been granted licenses to import raw gold to produce gold jewelry and fine arts, so there are no raw materials to produce and supply the market, meet the increasing demand of people and for export. VGTA said that purchasing and mobilizing gold from people, enterprises face many difficulties and risks.

After being put into production and processing, half will be used to meet domestic demand and half will be used for export, meaning 25 tons for export can earn from 3.5 to 5 billion USD. Of which, the value of labor accounts for over 30% of the value of exported products.

In the world , the production, processing and trading of gold jewelry is a normal commodity production and trading industry; no country regulates it as a conditional business industry.

Countries such as Thailand, Singapore, Indonesia, etc., also have many policies to support and encourage the strong development of this industry to meet domestic and export demand. In these countries, the export of gold jewelry products reaches 5 - 7 billion USD/year.

"If businesses are allowed to import raw gold to produce and process it into gold jewelry and fine arts, it will not only meet domestic market demand but also be exported, regenerating a large source of foreign currency for the country," the VGTA representative further argued.

Source: https://nld.com.vn/13-nam-khong-duoc-nhap-vang-vgta-kien-nghi-bo-vang-trang-suc-khoi-nganh-kinh-doanh-co-dieu-kien-196251205134010508.htm