Vietnam has reduced its import tax on gold bullion to 0.5 percent from one percent, according to the Vietnam Gold Business Association on Wednesday.

The tax decrease recently decided by the Vietnamese Finance Ministry is a move to develop the domestic gold market and minimize smuggling, said the association's deputy chairman Dinh Nho Bang.

But, the tariff imposed on gold powder remains unchanged, at 0. 5 percent, he said.

Vietnam imported some 40 tons of gold in the first seven months of 2005, 65 tons in 2004, and 59 tons in 2003, said the association.

Nearly half of the precious metal was used for crafting jewelry products for local sale and export. The country has around 8,000 gold trading firms.

Source: Xinhua