Vietnam: Local firms find it harder to export gold

by **ADMIN** Thu Jun 30, 2011 7:48 am

Local firms find it more difficult to export gold due to Government’s stricter requirements and higher tax rates, the online newspaper Sai Gon Tiep Thi reported June 30.

A gold exporter who exported over a ton of gold jewelry in June shared that she must ensure 98.5% of gold purity to enjoy 0% tax rate, adding that she can’t also process heavy gold jewelry including big neglaces and bracelets.

Besides, bracelets for export must be thinner, lighter with more sophisticated designs, otherwise they will be categorized as “semi-finished gold products” which’s imposed 10% tax rate.

If domestic gold prices are VND 300,000 lower than global prices, local gold exporters could make profit of VND 100,000/tael compared to VND180,000 in 2010 as they must pay additional expenses for raising gold purity to 99,99% from 98.5% and processing expenses for lighter gold jewelry, local media reported.

PNJ’s export turnover of below 65% purity gold jewelry was only $8 million in the first half of the year.

However, most of the firms have exported gold with purity of below 99,99% and crude jewelry due to weak capacity, it added.

From January 1, 2011, domestic gold exporters were imposed a 10% tax rate on exporting gold with purity of 99,9%, gold jewelry heavier than 1 ounce (over 8 one-tenth tael), and semi-finished gold products, according to Circular 184/2010/TT-BTC.

Vietnam’s export turnover of gold precious metals was estimated at $630 million in June and $1.027 trillion in the first half of 2011, mostly coming from gold, the General Statistics Office reported.

http://vietnambusiness.asia/local-firms-find-it-harder-to-export-gold/