Firms must obtain SBV permission to process gold into bullion

Vietnam gold traders reported that they must acquire the State Bank of Vietnam’s quota for having their gold processed into bullion, a policy that helps central bank control bullion production.
For example, Sacombank Jewelry Limited Company (SBJ) said the company was recently required to seek the State Bank’s quota before having its gold processed into bullion at the Saigon Jewelry Company Limited (SJC), the Thoi Bao Kinh Te Saigon (Saigon Economic Times) newspaper reported.

Nguyen Thi Cuc, Deputy CEO of Phu Nhuan Jewelry Joint Stock Company (PNJ) confirmed the central bank’s policy, adding that previously the PNJ was only required to contact and brought the material gold to the SJC.

For imported gold, local firms were obliged to present the import documents, including custom declaration and quota license of the SBV for the SJC to produce the SJC-brand gold bullion, said an unnamed SJC representative, adding that domestic gold must be AAA or PNJ-DAB brand gold.

The country’s biggest gold trader SJC could not carry out an order to produce 1 ton of gold from a large enterprise as its customer has not yet get quota from the central bank, the SJC representative said.

The central bank’s move was to avoid non-source gold to be sold in the market and to take control over the gold flows, the representative pointed out.

Besides, the central bank will closely monitor the SJC’s listed gold prices to ensure reasonable domestic gold premium in an attempt to minimize gold smuggling and speculation.

StoxPlus

Tags: vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by VBN on Nov 10 2011. Filed under Banking-Finance, Gold. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry