State Bank sets limits on gold trade

June 23, 2011 | 14:04

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People will continue to have the right to buy and sell gold bars but only at banks and authorised businesses, the State Bank of Vietnam (SBV) said in its final draft decree on the management of gold-trading activities.

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>> Bill allows gold bar transaction

In a previous draft decree, SBV said that people can sell but not buy their gold bars.

Like the previous draft, the final draft decree allows people to buy gold bars for savings, but not for use as a means of payment.

SBV also said it wanted to reduce the number of organisations allowed to trade gold bars. Trading gold bars is a restricted trading activity.

Enterprises and business organisations that want to buy and sell gold bars must get licences from SBV, and follow certain conditions related to capital, revenue and network regulated by SBV.

Businesses producing, outsourcing and trading jewellery gold must have a certificate from SBV showing they have sufficient trading conditions.

Organisations that produce and trade jewelry gold must re-register for a licence in accordance with the new regulation, within a year after the decree becomes effective.

In the previous draft decree, SBV was the only place that produced gold bars. But the final draft decree offers two options, in which SBV would either produce gold bars or grant licences to businesses to produce the precious metal.

If SBV grants licenses for businesses to produce, it will stipulate the process, procedure and the number of enterprises allowed to produce gold bars in a certain period in an aim to tightly control this activity.

Regarding imports and exports of gold raw materials, SBV will restrict gold exports while imports must follow strict requirements.

Exports of jewelry made from gold of 20 carats and more must have a licence from SBV.

Only firms licensed to mine gold would be eligible to export it. Regarding imports, the central bank will offer licences to jewelry producing firms for the local market and exports, as well as some Vietnamese firms mining gold abroad to send back to the country.

SBV has begun to collect feedback from ministries, agencies, businesses and associations on the final draft decree before submitting it to the government by the end of this month.