Vietnam's gold companies have imported more than 10 tonnes of gold to satisfy the market during the recent gold fever, the State Bank of Vietnam reported to the National Assembly.
According to the State Bank, the move aimed to stabilise rising gold prices on the domestic market.

The State Bank asked the Government to loosen gold import regulations in order to give importers greater flexibility and autonomy. The speculative nature of gold trading is likely to help streamline markets and supplies in line with international trends, the bank said.

So far, five Vietnamese commercial banks and three gold companies have been licensed to trade gold via overseas accounts.

Steep increases in gold prices have resulted in high risks for those who borrowed gold. State Bank Governor Le Duc Thuy said that commercial banks have curbed their gold lending activities, and lending has declined since the beginning of the year.

Gold prices on the open market have fallen VND550-600,000 (US$31.4-37.7) per tael over the last two days. In Hanoi, gold was sold for VND12.9 million per tael at Bao Tin Minh Chau. In HCM City, the price was VND13.1 million per tael at Sai Gon Jewellery Co.

This decline reflected the movement on the world market. Gold prices in Hong Kong on May 22 closed at 643.80 per ounce, a drop of US$10.

Vietnam still relies on imports of gold to meet market demand and annually has to import around 50-60 tonnes of gold, according to a market expert.