This is occurs because the Vietnamese market needs to be stabilized especially after the domestic prices rose more than before this week. The glittering metal has always been a sought after investment in Vietnam. On the one hand because there has been a very long period of consumer price inflation and on the other hand because there have been some devolutions in the Vietnamese Dong that have left the consumers unconfident in the local currency.

When the government of Vietnam will allow this to happen the price of gold around the world will increase significantly. Because of the Indian festival season the demand for the glittering metal has also risen. Financial experts say that the price of gold will go through the step of 1.400 dollars an ounce in the days to come because there is an increased demand of precious metal from China and India. Also in addiction to this the imports of gold in Vietnam will make the price of gold skyrocket.

These imports will only increase the domestic price of the glittering metal that will most surely rise above the prices of the precious metals on the international market. However, it can also have a very negative impact on the Southeast Asian import bill making the trade deficit even more complicated than it was.

There have been times when the prices in Vietnam have overcome the world prices. The price of the precious metal reached the amount of 33 million dong in Asia a few days ago, this is 1.693 dollars per ounce. This would mean that the Vietnamese companies will have to obtain licenses from the government in order to import gold. This glittering metal is one of the four major investment commodities for the Vietnamese citizens.

Also, in 2006 the sector exported textiles and garments to the value of US$5.8 bn, making it Vietnam’s second largest export earner after crude oil. Buyers from a number of the world’s leading textile and apparel companies have sourced apparel from Vietnam including Express, Hucke, Itochu, JC Penney, Jupitar, Kmart, Kowa, Lee Cooper, Li & Fung, Mast Industries, Nichimen, Nissho Iwai, Otto, Sara Lee, Seidensticker, Sumitomo, Tomen, Tommy Hilfiger, Victoria’s Secret, and Wal-Mart.

Three major developments over the past 20 years have led to the industry’s present vibrancy. One was the introduction in 1986 of the so-called Doi Moi economic reforms which—notwithstanding the government’s communist leanings—gave encouragement to the private sector and allowed market forces to determine the allocation of resources. A second was the collapse of the Comecon (Council for Mutual Economic Cooperation) bloc in 1990-91 and that of the Soviet Union in 1991. These events caused initial hardship but prompted the country to forge links with the West and enter the international community. The third was the granting by the USA of normal trading relations (NTR) or most favoured nation (MFN) status in December 2001, which led to a dramatic reduction in import tariffs in the US market.

The future for the textile and garment industry in Vietnam looks promising. Vietnam joined the World Trade Organisation (WTO) at the beginning of 2007 and seems set to build upon its recent export success. Moreover, the Vietnamese government is highly supportive of the textile and garment sector, and there are strong incentives to attract foreign investment. The government has outlined ambitious plans for the industry’s development. If these plans are fulfilled, employment and exports in the sector will double by 2010.