Gold price continues to surge In Vietnam
HANOI - The gold price continued its relentless rise, reaching a new peak and affecting the banking and real estate markets in Vietnam. The price of a tael (1.2 ounces, 38gm) rose to VND9.23 million (US$584) beating earlier all-time high of VND9 million ($566) on November 20.
Prices in Vietnam have been tracking international rates which were at an 18-year high of $489.7 an ounce on November 21.
Nguyen Tai Quy Nam, deputy general director of the Viet A Commercial Joint Stock Bank, said with gold prices at such levels, it was becoming unprofitable for banks to make gold loans. Vietnamese banks lend in the form of gold, mostly to customers making property purchases. Land is still widely valued in gold equivalent and even paid with it.
However, another banker, Pham Van Thiet, general director of the Asia Commercial Bank (ACB), disagreed with Nam. He said gold loans would not be affected because most banks loaned gold deposited by customers.
Chau Thi Thu Nga, director of the Real Estate Investment Joint Stock Company, said the steep increase in gold prices would affect the already-sluggish real estate market.
Vietnam News Agency - November 24, 2005.
|