Vietnam is world’s 2nd largest gold hoarder

The State Bank of Vietnam, the country’s central bank, has proposed the government ban the trading in gold bullion.

The central bank in April also asked commercial banks to cease lending gold in May and stop accepting gold deposits two years from now.

The new rule is an attempt to eliminate the role of gold as a means of payment in Vietnam. It noted that the government will continue to recognize the right of citizens to store gold.

In related news, Vietnam is Switzerland’s single largest source of imported gold products since 2009, the Financial Times recently reported.

Vietnam spent $878 million to import 19.2 tons of gold in the first quarter of this year, up 28 percent in value and 2 percent in volume year on year, according to a recent report from World Gold Council.

Vietnam’s year-on-year demand for gold jewelry and gold bullions for investment has increased by 7 percent to 5.5 tons and 1 percent to 14.2 tons respectively in Q1/2011.

Source: Tuoi Tre/SGTT

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Tags: vietnam gold, Vietnam gold market, Vietnam gold prices