A silver lining to gold decree

August 24, 2011 | 16:09

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The gold market is expected to be more tightly controlled with a new gold management draft decree coming into force in a matter of time.

>> Central bank frees up gold imports

>> Gold climbs to record above $1,910 on growth fears

The State Bank announced a gold management decree draft will replace Decree 174/1999/ND-CP dated December 9, 1999 on the management of gold business activities.

The decree draft will restructure the gold market to prevent speculation and restrict gold bar trading.

Accordingly, the State Bank will be responsible for production engineering or licencing the production of gold bars. The bank will only allow certain businesses and financial institutions with experience in gold business to trade gold bars.

Also, the State Bank will be the agency to licence raw gold imports and exports. The State Bank’s branches in cities and provinces branches will issue business certificates for enterprises producing or processing of gold jewelry.

"The State Bank desires to control the gold market," said an economic expert.

Last month, Vietnam recorded a $1.1 billion trade surplus, the first surplus in more than two years. Exports totaled $9.32 billion, while imports came in at $8.22 billion. This surplus originated from gold exports.

According to General Department of Customs' data, while in average the first five months of this year, gold export value was $79 million per month. Until June, the value reached up to $806 million and it was $1.11 billion in July.

By Nguyen Trang

vir.com.vn

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