The Ministry of Finance has submitted a draft Decree amending and supplementing Decree No. 26/2023/ND-CP dated May 31, 2023 of the Government on export tax rates, preferential import tax rates, product portfolio and absolute tax rates, mixed taxes, import taxes outside of tax rates.
Accordingly, the notable content of the draft decree is to adjust the export tax rate for gold jewelry and fine arts under the 4 codes 7113.19.10, 7113.19.90, 7114.19.00, 7115.90.10, from 1% to 0%.
According to the drafting agency, this adjustment will help businesses reduce their cost burden and increase competitiveness, especially in the context of limited raw gold supply and continuously increasing prices. In addition, the policy also encourages the conversion of stored gold into value-added products, contributing to bringing gold back to the true nature of goods - consumption instead of focusing only on gold bars that are sensitive to currency.
The new 0% tax rate is assessed to be consistent with the tax framework of the group of jewelry and fine arts products (010%) and consistent with the principle of issuing tax and tax rates.
Mr. Nguyen Quang Huy - CEO of the Faculty of Finance - Banking (Nguyen Trai University) said: "The proposal to reduce tax from 1% to 0% is a sophisticated adjustment, in line with the orientation of bringing gold back to the true nature of goods - consumption. This policy creates a direct coste leverage for businesses, while sending a clear signal: prioritizing added value, design, manufacturing and brand capacity instead of relying only on metal content.
According to Mr. Huy, in the short term from 6 to 12 months, tax reduction will help businesses improve their price competitiveness, because the 0% tax rate allows reducing export costs, creating room to adjust price lists and discounts to access markets with thin profit margins.
This policy also motivates businesses to expand capacity, standardize processes, improve designs, thereby leading to the development of the entire supply ecosystem such as design, casting, stone attachment, surface finishing and packaging. When export orders increase, product portfolios for the domestic market are often more diverse and standard; domestic consumers will benefit from quality and after-sales services, Mr. Huy emphasized.
In the medium and long term, the 0% tax rate is expected to pave the way for businesses to shift from pure processing to design, brand building and developing international distribution channels.
Mr. Huy analyzed: "If we go in the right direction, the gross profit margin will not only come from precious metals but also from creative content. The development of the jewelry industry will help the gold picture shift to legitimate consumption and export, contributing to reducing the psychological pressure of speculation on physical gold. At the same time, the demand for skilled labor, technical certificates and the origin traceability assessment system will increase, creating a foundation for the image of "Vietnamese gold products" in the international market".
For the policy to be effective, Mr. Huy said that it is necessary to go hand in hand with many other solutions. Vietnam must speed up the standardization of technical standards, transparency of origin and certification of standards to meet the strict requirements of the export market. Along with that, there is strong investment in design, brand building, intellectual property protection and seasonal collection development to avoid competition for only the price.
Mr. Huy emphasized: This policy needs to be associated with supporting businesses in accessing credit, metal price risk prevention tools, along with trade promotion programs, fairs and cross-border digital platforms. At the same time, the training of goldsmiths, linking craft villages with modern enterprises, forming specialized industrial clusters will create a large-scale effect and improve national competitiveness".
