Gold fails to crack global market
The Vietnamese gold jewellery industry has yet to globally develop a brand name for itself, said Huynh Trung Khanh, a senior consultant at the World Gold Council in Viet Nam.
The Vietnamese firms export US$30 – 40 million worth of gold jewellery annually to demanding markets like the United States, France, and Germany, added Khanh.
But this is a fraction of neighbouring Thailand’s export of $2.2 billion.
The Viet Nam Gold Trading Association said the jewellery industry should focus on developing a brand name and acquiring modern processing technology.
However, only a portion of the country’s 7,000 jewellery shops can afford to do so.
The director of Viet Jewellery Company, Truong Thu Suong, said the competition would come from Thailand, Indonesia, and Malaysia, where labour costs are similar to Viet Nam’s but design and quality are of a much higher standard.
The association representative said Vietnamese firms need unique designs to attract the choosy European and American customers. A common complaint is that Vietnamese designs are not creative and rather monotonous.
Experts also point out that jewellery firms fail to market themselves well to foreign clients.
Viet Nam’s use of taels as a measurement for gold differs from the world’s commonly used measurements of troy ounces and grammes.
The Viet Nam Gold Trading Association has petitioned the Government to establish a gold weighing centre and issue gold standards to create a uniform measuring system.
Businesses have also asked the Government to simplify formalities so that they can attend international jewellery exhibitions and use them as a stepping stone to penetrate markets.
Prices rise
Domestic gold prices surged yesterday by over VND200,000 to reach VND19.40 million ($1,147) per tael (one tael is equivalent to 1.2 ounces) and prices were expected to remain high in the coming days.
The gold dealers Bao Tin Minh Chau Jewellery Co in Ha Noi and Sai Gon Jewellery Co (SJC) in HCM City reported that a large number of clients sold their gold yesterday in a bid to cash in on the high prices. The numbers of sellers was about twice that of buyers of gold.
SJC late yesterday listed buy/sell prices at VND19.20-19.35 million ($1,136-1,144) per tael in Ha Noi and HCM City, up by 0.9 per cent from the previous day’s price.
Bao Tin Minh Chau, meanwhile, listed prices at VND19.27-19.40 million ($1,140-1,148) per tael against VND19.05-19.40 million on Monday.
At noon yesterday, gold prices reached VND19.45-19.49 million per tael.
The prices represented an increase of nearly 20.8 per cent from the same time last year, marking a record high over the past three months. The global price of gold yesterday reached $974 per ounce, up 1.45 per cent from the previous day, supported by the increasing global oil prices.
"The increase of local gold prices is really pegging on changes in the global oil prices which are riding high due to the political tension amongst the US, Israel and Iran," said the head of SJC Ha Noi Luu Quang Dien. "Another reason is an increase in demand for gold during festive seasons in many Asian countries like China and India from September onwards," he said.
Domestic gold prices in March touched a record high of VND19.98 million per tael and the prices are likely to conquer that high if there is no improvement in the global political strife, Dien said.
"Gold price may pass VND20 million per tael," said Tran Quoc Quynh, a gold expert with Viet Nam Trading Gold Association.
VNS
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