HA NOI — The State Bank of Viet Nam (SBV) will take sole responsibility for the production and export of gold bars under Government Decree No24/2012/ND-CP.
|Jewellery is traded at a Bao Tin Minh Chau Co store. The State Bank of Viet Nam will take sole responsibility for the production and export of gold bars from May 25. — VNS Photo Truong Vi
The decree, which comes into effect on May 25, 2012, will prohibit seven activities including using gold as a means of payment, processing jewellery gold or trading bullion without licence from the SBV and doing other gold-related businesses without relevant authority's approval.
The decree, which recognises the right of individuals and organisations to own gold, is expected to be an efficient strike against the artificial inflation in price for gold bars which is currently troubling the market.
The right to buy and sell gold bars will only be allowed to organisations who have been licensed by the SBV.
In order to obtain such a licence, organisations or traders must have a charter capital of at least VND100 billion (US$4.8 million), two years experience in gold trading, and have paid taxes of at least VND500 million ($24,000) for each of the last two years. They are also required to have three or more trading network in provinces or cities directly under the authority.
|The SBV just ordered five commercial banks, along with the Sai Gon Jewellery Company (SCJ), to make reports on their gold bar trading networks nationwide. The banks, including the Viet Nam Technological and Commercial Joint Stock Bank (Techcombank), the Export Import Bank (Eximbank), Dong A Bank (EAB), Asia Commercial Bank (ACB) and the Sai Gon Thuong Tin Commercial Bank (Sacombank). The SBV said requirements would be used for deployment of gold trading networks to meet the demand for purchase and sale of gold bars of people in Viet Nam.
Credit institutions must have a charter capital of at least VND3 trillion ($1.4 billion), registration for gold trading activities and have a branch network in at least five provinces or centrally-administered cities.
Processing jewellery gold must also apply for a licence from the SBV.
Phi Dang Minh, former deputy director of the SBV's Foreign Exchange Management, said it was reasonable for the SBV to control the market for gold bars, as allowing this market to remain free would be troubling to the economy.
Cao Sy Kiem, former SBV Governor, expressed his agreement with the decree, saying it would help end the illogical difference between the domestic and international gold price. — VNS