Vietnam Liberalises Gold Market - 8 October, 2002

The next step after reducing quotas a week ago is to set up the country's first representative body for gold trading businesses in Vietnam.

Hoang Dinh Ngu, chairman of the state-run Vietnam National Gems & Gold Corp, one of the largest gold processing and trading firms in Vietnam, told Reuters on Monday the body would represent more than 7,000 gold businesses in the country.

It's planned to be helpful both for gold traders and for the central bank, the regulator of the gold market, as it will have an official line from the gold industry through the association instead of the central bank having to deal with individual claims.

The first meeting this week will include representatives from about 70 to 80 traders from across the South-east Asian country.

The congress would also discuss membership possibilities for the 14 foreign-invested enterprises in the country, which import about $50- $60 million worth of bullion gold annually and export the finished products.

Vietnam produces less than two tonnes of gold per year and imports between 35-40 tonnes for local consumption. Vietnam's main gold export markets are France and Switzerland.