Expert inside the industry of gold jewelry manufacturing reported that domestic enterprises find it difficult to export their products due to the high export tariff and high cost of materials.
According to current regulations, gold jewelry companies have to buy material for roughly 4 million VND per tael, which is higher than the average world price for the precious metal. They are facing huge difficulties due to lack control of input material sources. As a result, they cannot compete with foreign companies in terms of pricing.
Meanwhile, other Asian countries such as Thailand, India and China have cut down their tax on gold jewelry exports to zero, with the purpose of encouraging their gold jewelry industry to create high export value.
In response to that, the Ministry of Finance is proposing the cutting of the export duty on gold jewelry from 25 to 30 percent to 0 to 2 percent. In particular, gold jewelry that is below 95 percent in purity will be exempted from the tax while those with more than 95 percent purity will be assessed a two-per cent tax.
