By Tim Johnson
Financial Times, London
Wednesday, June 16, 2010
http://www.ft.com/cms/s/0/83a29cdc-5cb9-11df-bd7e-00144feab49a.html
HANOI, Vietnam -- Buying 500 Vietnamese taels of gold, a large but not exceptional purchase equivalent to a little under 19 kilogrammes, takes more than 2.5 times that weight in local bank notes.
For purchases of that size, Bao Tin Minh Chau, a Hanoi gold dealer, offers complimentary armoured car service and home deliveries.
Per dollar of income, the Vietnamese consume more gold on average than anyone else on earth: in 2009, more than twice as much as Indians, 10 times as much as Chinese, and 44 times as much as Americans, according to World Gold Council data.
This heavy habit is creating concerns in the corridors of power by contributing to the country’s chronic trade deficit, as most gold is imported. This in turn adds to pressure on the dong, Vietnam's currency.
No comments:
Post a Comment