VGTA urges rules to allow firms to borrow gold from public, ease imports

VGTA urges rules to allow firms to borrow gold from public, ease imports

VGTA proposed allowing jewellery producers to borrow gold from individuals at negotiated interest rates under civil law, arguing that such a mechanism would help unlock significant gold reserves held by the public and stabilise input supply.

People buy gold jewellery at a shop in Hà Nội. — VNA/VNS Photo

The Việt Nam Gold Traders Association (VGTA) has urged the Government to introduce clearer rules allowing businesses to borrow gold from the public and import raw gold more flexibly, in a move it says would help secure supply for the country’s jewellery sector.

In a proposal recently submitted to the Prime Minister, the association said more transparent regulations were needed to enable companies to mobilise idle gold held by households and reduce reliance on imports.

Việt Nam currently lacks specific legal guidance on buying, selling and mobilising domestically held gold for use as production input, the association said, adding that the gap has created legal risks for businesses and discouraged expansion.

Without clear regulations, activities such as purchasing or borrowing gold from the public carry legal risks, a VGTA representative said, noting that some firms have faced administrative penalties in the past.

The association estimates that Việt Nam’s gold jewellery and handicrafts sector requires around 50 tonnes of raw gold annually.

VGTA proposed allowing jewellery producers to borrow gold from individuals at negotiated interest rates under civil law, arguing that such a mechanism would help unlock significant gold reserves held by the public and stabilise input supply.

It also called for clearer classification of market participants, including non-commercial individual traders and gold trading households, to standardise tax, invoice and payment rules and avoid bureaucratic bottlenecks.

Separately, the association proposed a more flexible mechanism for importing raw gold, under which export-oriented manufacturers could import volumes agreed with foreign partners and registered with banks, similar to other manufacturing sectors.

Companies would be required to register annual import plans and report usage to the State Bank of Vietnam and the Ministry of Industry and Trade to help monitor trade balances and foreign exchange flows.

VGTA estimates that annual raw gold imports could total about US$5 billion, with roughly half of processed output serving the domestic market and the remainder exported.

Gold jewellery exports could generate between $3.5 billion and $4 billion per year, the association said, helping replenish foreign exchange reserves.

The group also recommended a zero per cent import tax on raw gold, revisions to value-added tax calculations, and improved access to credit, particularly foreign currency loans, for export-focused firms.

If implemented, the proposals could boost the competitiveness of Việt Nam’s gold jewellery industry and support deeper integration into global supply chains, VGTA said. 

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