The Vietnam Gold Business Association (VGTA) recently submitted a document to the Prime Minister, proposing several policies for the gold jewelry and fine art gold business. The association's primary recommendation is to establish a flexible mechanism for raw gold sources, including both imports and domestic mobilization, to ensure input for production and enhance international competitiveness.

Specifically, the VGTA proposes that enterprises be permitted to import raw gold under contracts with foreign partners, registered through commercial banks. This mechanism would be similar to the raw material import processes in other manufacturing sectors. Enterprises would be required to register their annual plans and submit periodic reports to regulatory agencies.

The VGTA estimates that the demand for raw gold for production is approximately 50 tons per year, equivalent to 5 billion USD. One half of this volume would serve the domestic market, while the remainder would be exported, potentially generating 3,5-4 billion USD in foreign currency revenue. The association believes that the estimated foreign currency demand of 416 million USD per month for raw gold imports is negligible compared to the transaction volume on the interbank market, thus posing no significant pressure on foreign currency supply and demand.

Regarding domestic gold sources, the VGTA notes that the lack of clear regulations on buying, selling, and mobilizing gold from the public creates legal risks for enterprises. To unlock resources within the economy, the association proposes allowing enterprises to borrow gold from the public at agreed interest rates.

Gold jewelry displayed at a store on 21/4. Photo: *Hoang Giang*

Additionally, the association recommends that the Prime Minister promptly eliminate business conditions and licenses for gold jewelry and fine art gold operations. This alignment with the Investment Law 2025, which has removed this sector from the list of conditional business sectors, is crucial. The VGTA specifically proposes abolishing relevant regulations in Decree 24/2012, Decree 232/2025 (amending Decree 24), and Decree 340/2025 concerning administrative penalties. Concurrently, it advocates for the synchronization of circulars issued by the State Bank of Vietnam, the Ministry of Industry and Trade, and other relevant ministries.

The VGTA asserts that if the policy of administrative procedure reduction is properly implemented, the gold jewelry and fine art gold industry could achieve an export turnover of 4-5 billion USD per year. The association also suggests various tax, credit, and trade support policies, including a 0% import tax on raw gold, allowing the full inclusion of processing costs in value added, and prioritizing foreign currency credit for enterprises importing machinery and raw materials for export.

To foster a transparent and smooth market operation, the VGTA proposes supplementing legal regulations related to diverse payment methods, gold price risk hedging tools, and policy training and dissemination.

Quynh Trang