Domestic gold price continues to soar

by Thien Ly

The domestic gold price late last week climbed to more than VND21.5 million per tael from VND20.5-VND21 million, where it had been for months.

On the morning of September 3, gold prices at many shops in HCM City stood at between VND21.40 million (US$ 1,207) and 21.49 million per tael, VND200,000 higher than the day before. In the afternoon of the same day, rates continued to climb to VND21.45 and 21.55 million per tael.

The buying and selling of gold prices offered by Sai Gon Jewelry Holding Company in HCM City jumped VND310,000 per tael from the day earlier to VND21.48 and VND21.57 million(US$1,207), respectively. The company’s rates in the Ha Noi market were VND21.44 and VND21.51 million per tael, up by VND230,000.

Gold at the Gold and Silver Bao Tin Minh Chau Company in Ha Noi, also a benchmark for the northern market, was quoted at VND21.42 million per tael on buying and VND21.52 million on selling. A tael equals 1.2 troy ounces.

The changes were reportedly made in line with the increase on the global market. On the New York market last Wednesday, the precious metal price amounted to $978.6 a troy ounce, increasing $21.4 from the day earlier. The price elsewhere in Asia rose by $4.3 to $98.6 an ounce, the highest level in the past five months, due to the weakness of the US dollar against other currencies.

Such pricing changes have resulted in an increase in the number of transactions by gold investors who want to take this opportunity to sell gold that they have held.

According to independent market observers, only a small number of people were buying gold at jewelry shops. A representative of the SJC sale department said the company’s trade had remained unchanged, with 2,000 taels bought and 500 sold, around the same amount as other days.

Some gold shops at Ben Thanh market also said the number of people who wanted to sell gold was four times higher than the number of buyers.

Most supermarket chains and shopping centres in HCM City are actively participating in the annual sales promotion during September, with discounts of up to 50 per cent.

The promotion month, launched by the HCM City Department of Industry and Trade, aims to stimulate consumer demand, promote sales in the domestic market, and honour domestically made goods.

Promotions vary from discounts on prices of goods and services to raffle tickets for product prizes.

The Sai Gon Co-op Mart chain has led the pack with total investment of VND40 billion this month. Between September 1-27, 38 Co-op Mart and four Co-op Food stores nationwide cut prices to thousands of items.

Citimart, with 18 stores in HCM City and other cities and provinces, are also taking part, with 90 per cent of their eligible goods made in Viet Nam.

The Dong Hung Co, which is Citimart’s owner, said it must accept a loss of 50 per cent in profits on some goods sold in its stores. Suppliers for the Citimart stores have also been required to offer 10-30 per cent discounts on their products.

As part of the September sales month, Big C Viet Nam, which is part of the French-based Cacino group, has given top priority to Vietnamese goods. In addition to giving the best display positions for Vietnamese goods, Big C has also been actively buying Vietnamese products from producers for export.

The company said it had sought high-quality Vietnamese products to export through its mother company’s network of stores in the world.

As a result, Big C Viet Nam exported $13.5 million of Vietnamese products for the first eight months of the year, thus promising to reach the year’s growth target of 40 per cent by year-end.

Sai Gon Trading Group’s Tax Trade Centre has launched the biggest sales programme in response to the city’s promotion month. Under the plan, the centre has cut prices by 5-40 per cent on 500 items, including processed food, fresh food, textiles and garments, gifts and souvenirs.

In addition, the Sai Gon Supermarket stores have cut prices by 5-20 per cent during the promotion month.

Opportunity

Supermarket chain owners at first saw the promotion month programme as an opportunity to promote their brand, not make profits. However, their participation has resulted in positive results for their business.

The Co-op Mart chain has also seen higher profits. The number of visitors to their stores increased 1.6 times, while turnover was up by 43 per cent.

Viet Nam will organise 22 tourism promotions at home and abroad between now and next March to reverse the decline in international arrivals.

Of the events, 15 promotions would be held in mainland China, Japan, Taiwan, Germany, Malaysia, Russia, France and other countries. The remaining seven events at home include the gong festival, the Mekong-Japan festival as well as activities to prepare for the National Tourism Year of 2010.

Apart from these programmes, the Viet Nam National Administration for Tourism (VNAT) will also run publicity programmes on BBC and in other international magazines, in addition to a repeated programme on the Cable News Network (CNN).

The busy programmes were meant to woo international visitors back to the country at a time when the hospitality industry has been hit hard by the global economic downturn.

Apart from these events, important conferences will also take place this year, including those on the development of river tourism and bordergate tourism.

According to VNAT, the country received nearly 2.2 million international visitors in the first seven months of 2009, down 18.7 per cent. — VNS

Source: Viet Nam News