Gold traders must have VND30Bln minimum charter capital

Gold-trading firms must have a minimum charter capital of VND30billion and minimum revenue of VND500billion in the last 2 years, suggested the Vietnam Gold Traders Association (VGTA).

It’s necessary to squeeze gold trading and manufacturing but at first, Government shouldn’t ban it, the VGTA suggested.

The Association also suggested to reactivate gold trading on account and set up National Gold Exchange under the central bank’s regulations soon.

Members of the gold exchange will be commercial banks, and qualified and prestigious gold traders, through whom investors will place buying/selling orders, it said.

The operation of trading gold on overseas account should also be resumed to help commercial banks and enterprises balance their gold position, hedge exchange rate risks with derivatives without having to export-import gold, it added, noting that it should be restricted to only gold traders with big market shares and experiences and expertise.

Apart from that, the Association proposed the Government to set a more flexible regime of gold market regulation to narrow the gap between local and global gold prices, helping to avoid gold “price shocks” and discourage illegal gold trading across the borders.

The Government should restrict gold export-import activities to those who have sufficient financial capacity, experiences and wide network, the VGTA said, adding that importing quota should be granted in line with market demand and gold traders’ capability of balancing foreign currencies.

The Government should not give gold import quote for a too short period, as it may encourage dollar hoarding, importers likely won’t have best prices, making it hard to stabilize local gold prices.

Dinh Nho Bang, the VGTA’s General Secretary said gold export-import activities should be regulated via tax policies only, specifying that gold importing tax rates should be raised to 0.5% from 0% and exporting tax rates should be cut to at most 0.5% or even 0%. – Stoxplus.com

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