Vietnam Lifts Ban on Gold Imports

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Shifting sands in the gold investment market means that European countries are now in the vanguard when it comes to investment bar purchases; with local gold prices doubling since April 2006, will Vietnam now come back to the fore?

While the IMF and the Reserve Bank of India have been taking up headlines over the first half of November in terms of Official Sector attitudes to gold, the change in the Vietnamese government's policy over gold imports illustrates the fact that demand remains strong at grass roots level in some parts of the world.

The Vietnamese government has now lifted its import ban with the statement "The State Bank of Vietnam will allow gold imports with a volume sufficient to intervene in the market in order to stabilise the market, combat speculation and prevent an impact on the interests of the people". This is partly in response to the widening disparity between domestic and international gold prices, which has been causing a surge in demand for dollars as demand has increased once more. The shift in trade flows in the coming weeks will be instructive.

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