Gold prices fluctuate strongly, businesses are under great pressure
In the submission on the draft Decree amending and supplementing Decree No. 26/2023/ND-CP dated May 31, 2023 of the Government on Export Tax rates, Preferential Import Taxes, List of goods and absolute tax rates, Mixed taxes, import taxes outside the tariff quota, the Ministry of Finance cited a report by the World Gold Council (WGC) showing: in the fourth quarter of 2024, world gold prices increased by 28 30% compared to the beginning of the year - the highest level since 2010; in the first quarter of 2025, they continued to increase by 3839% compared to the same period in 2024.
In the country, according to data from the General Statistics Office (now the Statistics Office) cited by the Ministry of Finance, the gold price index has continuously increased sharply. Compared to the same period last year, the increase in the first months of 2025 was from 32% to nearly 48%, respectively. On average, in the second quarter of 2025, gold prices increased by 43.62% over the same period; in the first 6 months, the increase was 37.4%.
Notably, according to the State Bank (included in the submission), from mid-April 2025, the gap between domestic and world gold prices will increase sharply. By mid-May, SJC gold bars were converted up to VND19 million/tael higher than the world price, while gold rings were at a difference of nearly VND14 million/tael.
According to Lao Dong, on August 25, converted to Vietcombank USD exchange rate, the gap between domestic SJC gold bar prices and world gold prices is getting higher, currently at nearly 20 million VND/tael.
The Ministry of Finance stated: "The fluctuations in world and domestic gold prices have greatly affected consumption capacity, especially for gold jewelry and fine arts".
According to WGC data cited by the Ministry of Finance, global demand for gold jewelry in 2024 will reach 1,877 tons, down 11% compared to 2023. In the first quarter of 2025, it will continue to decrease by 21% compared to the same period.
In Vietnam, gold consumption in 2024 will reach 55.3 tons, down slightly compared to 2023. Of which, gold jewelry and fine arts only reached 13.22 tons, down 13% - the largest decrease in ASEAN. The Ministry of Finance assessed: "The domestic demand for jewelry and fine arts has decreased sharply, reflecting the pressure from price fluctuations and weak competitiveness".
Enterprises are stuck because of raw materials, exports have decreased, need support policies
According to the Ministry of Finance, although Decree 26/2023/ND-CP stipulates a preferential import tax of 0% on raw gold, in fact, from 2012 to present, no enterprise has been licensed to import raw gold to produce gold for jewelry and fine arts.
Enterprises must buy domestic gold, which is scarce and costs more than the world. This increases input costs, making it difficult for products to compete in the international market.
The Ministry of Finance stated: "The lack of legal imported raw materials and the large difference in domestic prices compared to the world have reduced the competitiveness of Vietnam's gold jewelry and exported fine arts products".
According to data from the General Department of Customs (now the Customs Department) in the submission, the total export turnover of gold jewelry and fine arts in 2024 will reach 332.2 million USD, down 4.95% compared to 2023 (349.5 million USD). In particular, some products have grown, but some have decreased sharply by nearly 99%.
The Ministry of Finance believes that these figures clearly reflect the challenge: "In the context of declining global demand, fluctuating gold prices and businesses not being able to access imported raw gold, Vietnam's gold jewelry and fine arts export activities face many difficulties".
Draft content and expected impact
In the draft decree, the Ministry of Finance proposed to reduce the tax rate for exporting gold, jewelry and fine arts from 1% to 0%.
The Ministry of Finance estimates that with export turnover in 2024, budget revenue will decrease by about 3.3 million USD/year (equivalent to 79 billion VND). However, the Ministry affirmed that the new tax rate is still within the range of 0 10% prescribed in the Law on Export Tax and Import Tax.
The report stated: This adjustment is necessary to support businesses in reducing costs, increasing competitiveness, thereby promoting the conversion of stored gold into value-added products.
According to the Ministry of Finance, the content of the draft has been agreed upon by ministries, branches and associations or has not had other opinions. The Ministry is currently submitting to the Government for consideration to issue a decree soon, putting the policy into practice.
The Ministry of Finance emphasized: adjusting the export tax rate to 0% will contribute to implementing the Party's policies and the Government's direction, while creating a competitive advantage for Vietnamese jewelry and fine arts in the international market.
