Vietnam suspends gold imports on trade gap-WGC
SINGAPORE, June 23 (Reuters) - Vietnam, one of Asia's main gold consumers, has suspended issuing gold import quota for local banks and trading houses in June due to a widening trade gap, a World Gold Council official said on Monday.
"The government is very concerned. They have to reduce trade balance deficit. Gold is one of the main imports," said Hyunh Trung Khanh, a consultant for the Vietnam chapter of World Gold Council.
"So far, Vietnam has imported 60 tonnes of gold, with the value of $1.8 billion (Jan-May). They have to temporarily suspend imports. The central bank has temporarily suspended gold imports until further notice. All the imports quotas are suspended."
Traditionally, Vietnamese only use gold for jewellery and real estate transactions but when inflation is high many choose gold or the U.S. dollar to hedge against inflation.
Vietnam's annual inflation rate hit 25.2 percent in May, while the trade deficit has tripled this year.
Vietnam imported around 30 tonnes of gold in January-May in 2007, according to the WGC figures. (Reporting by Lewa Pardomuan; Editing by Lincoln Feast)
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