VietNamNet Bridge – Vietnam is overwhelmed with an increasing influx of gold jewelry smuggled from China as domestic gold prices are nearly VND500,000 per tael higher than global levels.

Gold jewelry items on display at a retail outlet in downtown HCMC.

Concerns about gold smuggling have been raised since the middle of last year due to a great differential between local and world gold prices. With low prices and diverse designs, Chinese-made gold jewelry has become a favorite among local traders.

Nguyen Huu Nhon, the owner of a gold shop at Ben Thanh Market in HCMC’s District 1, said he had bought some standard jewelry items from new suppliers. “Chinese-made products are acceptable as long as they’re cheaper and finer than those offered by traditional suppliers. For well-known jewelry brands, we can make less profit,” he said.

Huynh Trung Khanh, deputy chairman of the Vietnam Gold Business Association, said prices smuggled jewelry were lower than those in Vietnam as domestic gold was more expensive than elsewhere in the world.

“If Chinese-made jewelry is imported via official channels with a 20% import tax, it won’t be that cheap,” he said. Suppliers can claim their products are imported from wherever they like as gold trading in Vietnam does not require invoices or certificates of origin.

Only leading traders import gold via official channels to protect their reputation. Most private retailers buy gold from small suppliers to enjoy low prices.

Authorities have recently uncovered around 15 kg of 18K gold smuggled from China and assigned Saigon Jewelry Holding Co. (SJC) to assess it, Sai Gon Tiep Thi reports.

Khanh said China’s jewelry with competitive prices and fine designs might gradually replace domestic products if the authorities fail to take effective measures to cope with the problem.

The association has suggested the Ministry of Industry and Trade reduce the jewelry import tariff to encourage the official import of gold.

VietNamNet/SGT

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