The draft decree proposes allowing eligible banks and enterprises to import raw gold and produce bullion — a function that, until now, has been exclusively assigned to a single entity. Photo vnbusiness.vn

HÀ NỘI — Việt Nam’s gold market is poised for significant reform, as eligible banks and enterprises will soon be permitted to import raw gold and produce bullion — a move expected to invigorate the sector with increased competition and more brands.

Đào Xuân Tuấn, director of the State Bank of Vietnam (SBV)’s Foreign Exchange Management Department, said that the SBV is in the process of finalising a draft Government decree that amends Decree 24/2012/NĐ-CP, aimed at gradually liberalising the gold bullion market while ensuring stringent regulatory oversight.

A key proposal in the draft is to allow eligible banks and enterprises to import raw gold and produce bullion — a function that, until now, has been exclusively assigned to a single entity.

“The SBV will issue licences to the credit institutions and enterprises meeting requirements to import raw gold to produce bullion, or use the imported material to produce jewellery,” Tuấn said.

Material import quotas will be granted basing on macroeconomic conditions, monetary policy and market fluctuations. This new approach is intended to dismantle the existing monopoly while maintaining the State’s regulatory and supervisory role.

Under the proposed regulations, licensed bullion producers must publicly declare quality standards, maintain detailed transaction records and integrate their data systems with those of regulatory authorities.

Tuấn emphasised that enterprises will be held accountable if product quality does not match the declared standards, adding that data about bullion transactions must be transparent, as they are subject to audit at any time.

Allowing multiple bullion brands is expected to create a more competitive marketplace, narrow price differentials between brands and ultimately benefit consumers.

To further enhance market transparency and oversight, all payments for bullion transactions will be required to be made via bank accounts and accompanied by electronic invoices — a measure aimed at improving financial tracking and control.

Under the draft decree, payments for buying and selling gold worth VNĐ20 million or more must be made through the customer's payment account and the payment account of the gold trading enterprise opened at a commercial bank or a foreign bank branch.

Tuấn noted that while over 6,000 enterprises are currently active in the production and trading of gold jewellery, most are small businesses lacking the financial capacity to obtain import licences.

To address this, the draft decree stipulates that only credit institutions and bullion producers eligible to produce gold bullion are licensed to import raw gold. These entities may then supply raw materials to domestic jewellery manufacturers. A company or bank that wants to be licensed to produce gold bars must have a minimum charter capital of VNĐ1 trillion and VNĐ50 trillion, respectively.

This regulation will both increase the supply of raw gold and ensure that import activities remain under control, Tuấn said.

Licensed importers will also be required to establish transparent internal processes, keep full transaction records and connect their information systems with the relevant authorities to support inspection and monitoring.

The revised decree is expected to represent a turning point for Việt Nam’s gold market, laying a stepping stone for a more competitive and transparent market operating in line with global fluctuations and the law.

In the domestic market, the SJC gold price has increased rapidly in recent trading sessions and exceeded VNĐ120 million per tael to sell on Friday morning.

Saigon Jewelry Company, DOJI Group and Bảo Tín Minh Châu Gold Company on Friday morning listed the price of SJC gold bars at VNĐ118.5-120.5 million per tael for buying and selling, an increase of VNĐ800,000 per tael from yesterday. The gap between buying and selling prices was VNĐ2 million per tael.

The rise of gold in the domestic market followed a surge in the global price of gold due to increasing demand for safe havens amid rising risk concerns in the general market. On Friday morning, the global gold price was listed at around US$3,433.2 per ounce, up $61.90 compared to the previous day. — BIZHUB/VNS