Gold bar trading allowed in licensed points

Residents still have right to buy or sell gold bar but the transactions must be conducted at licensed banks and enterprises, the VnExpress reported, citing the State Bank of Vietnam’s completed decree draft on gold bar business management.
After almost 20 drafts, the final one of the regulation was sent to some ministries, agencies, companies and profession associations last weekend, only few days before it should be submitted to the government for approval.

Right of gold bar trading of institutions and individuals still is accepted, but the transactions are required to be conducted at banks and companies who are licensed to operate in gold bar business by the Central Bank. Trading gold bar from unlicensed points will be seen as violation.

Especially, using gold as payment mean also is alleged to break the regulation that aims to minimize goldization in the current economy amid big transactions in fields of real estate field are paid or calculated in gold.

Regarding requirements on licensing gold bar business, the draft previously regulated that enterprises must have a charter capital of more than 100 billion dong, taxable revenues in recent two consecutive years at least 500 billion dong and a sales network in at least 3 provinces/cities. But the final draft requires some terms on capital, revenue and network in a given point of view according to the SBV’s guidance.

In one year from the decree taking effect, jewelry producers and traders will have to re-register to business management agencies and complete procedures of asking business certificates in line with new rule. Timeline for gold bar operation is 3 months.

The final decree draft offers two plans: The SBV will organize production or license enterprises to produce gold bar. Where licensing companies to produce, the SBV will specify procedures, gold bar volume that enterprises are allowed to produce in each period to closely monitor the activity.

The country now has almost 10,000 gold bar trading points with eight trade names in the market. – Vietbiz24

Tags: Gold bar trading