As per a decree issued by the Prime Minister’s office on April 3, gold has been banned as a medium for exchange, along with seven bullion-related activities that will take effect from May 25.
|Gold has been banned as a medium for exchange, along with seven bullion-related activities that will take effect from May 25 (Photo: U. Phuong)|
The decree prohibits use of gold as a medium of exchange; manufacturing gold jewellery without a licence from the central bank; trading gold without a licence; and conducting any other gold-related businesses without the approval of the Prime Minister and the Central Bank.
In addition, licensed gold enterprises must satisfy requirements such as having registered capital of VND100 billion; having operated in gold trading for two years; paying tax above VND500 million and having at least a branch in three central provinces and cities.
As per the decree, licensed banks and credit institutions must have a registered capital of over VND3 trillion and branches in five provinces and cities.
Moreover, gold producers must be registered under the country’s law to make gold and have good working facilities.
Furthermore, the State Bank of Vietnam (SBV) ordered five banks including Asia Commercial Bank (ACB), Dong A Bank, Vietnam Export Import Bank (Eximbank), Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), Vietnam Technological and Commercial Joint- stock Bank (Techcombank) and Saigon Jewellery Company to send detail reports of their network for selling and buying bullion in the country, along with names and address of branches.
For setting up a network in the country and for meeting the demands of domestic gold consumers, five banks and jewellery companies have been asked to expand operations in every district in the country.