State monopoly over gold bar production set up
By Thanh Thuong - The Saigon Times Daily
HCMC – The State will officially hold a monopoly in producing gold bars starting from May 25 when the decree on gold bar trading management becomes effective.
Decree 24/2012/ND-CP signed by the Prime Minister on Tuesday assigned the central State Bank of Vietnam (SBV) to unify the management of gold bar trading on behalf of the Government.
The decree is basically the same as its draft version announced in October last year. The legal rights to possess gold of organizations and individuals are recognized and protected under the prevalent regulations.
The decree allows SBV to add gold bars to the national foreign exchange reserves. The central bank will take charge of stabilizing the local gold market through gold material export-import, organizing and managing gold bar production, trading gold bars in the local market and mobilizing gold upon request of the Prime Minister.
SBV will also be responsible for exporting and importing gold materials for gold bar production, and granting import and export licenses to enterprises in accordance with the regulations.
Gold bar trading is only permitted at a few gold firms and credit institutions with certificates granted by the central bank.
Gold companies are required to have chartered capital of over VND100 billion, tax payment of more than VND500 million a year in the recent two consecutive years, and branches in at least three provinces and centrally-governed cities to be qualified for gold bar trading.
As for credit institutions, SBV will consider licensing the lenders with chartered capital of VND3 trillion or above that have registered for gold bar trading and have branch networks in five provinces and cities.
Meanwhile, gold jewelry producers are asked to have business registration certificates and necessary facilities and equipment for production.
Without the central bank’s licenses, gold and jewelry production, gold bar trading and gold material export-import are all prohibited. Using gold as a means of payment is also disallowed.
In related news, SBV on Tuesday requested Saigon Jewelry Holding Co. (SJC) and several banks to make detailed reports on their current trading networks, with locations of their branches and shops across the country, in a bid to promptly roll out the gold bar trading network meeting the demand of people nationwide
Asia Commercial Bank (ACB), DongA Bank, Vietnam Export Import Commercial Joint-Stock Bank (Eximbank), Saigon Thuong Tin Commercial Bank (Sacombank) and Technological and Commercial Bank of Vietnam (Techcombank) are those required to submit reports to the central bank.
SJC and the lenders are also asked to report about their schemes on the network deployment and its feasibility, including specific schedules for the network expansion, and submit the reports to SBV prior to next Monday.
A source told the Daily that through the reports, the central bank will know if the gold supply network is widespread and closely connected to gold buyers.