Thursday, 9th November 2006 (3339 views)

The second ever gold warehouse of its kind is being planned by Saigon Jewellery Company.

The firm wants to build a custom-bonded warehouse with a surface area of 100 sq m in Ho Chi Minh City.

Saigon is currently in the process of getting a license form Vietnam's general department of customs to go ahead with building works.

The warehouse has the facilities to store tonnes of gold either for foreign companies, Vietnamese banks or for export by Vietnamese gold traders.

It will shorten the time taken to purchase gold from abroad from three days to an estimated half a day.

It is the second building of its type within the country after the first warehouse opened in July and is being built near to Tan Son Nhat international airport.

Currently, non-Asian sourced jewellery imports are imposed with a 40 per cent import tax but when Vietnam joins the World Trade Organisation (WTO) this tax rate will gradually decrease.

Nguyen Thanh Long, director of the Saigon Jewellery Company, said: "Once the WTO's doors open to Vietnam, big challenges will come to local gold producing and trading firms."

 

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