SBV should relax regulations on gold jewelry

The State Bank of Vietnam (SBV) should loosen up regulations on producing and processing gold jewelry in its Draft Circular on regulating gold market, suggested the Vietnam Gold Traders Association.

To be eligible for processing gold jewelry, there’s no need to set up a business or get licenses from the central bank as stipulated in the SBV’s circular draft on regulating gold market, the VGTA suggested, reasoning that easier requirements on this activity will help to encourage households to involve in gold jewelry processing for firms.

The VGTA agreed with the draft circular that it’s necessary to set up business under Business Law or Co-operative Law, as they need to be responsible for product quality.

However, it suggested these firms shoudn’t be required to get business licences from the SBV because gold jewelry is just a normal consumption good which’s not subject to limited or conditional trade under Vietnam’s Business Law and Ordinance on Foreign exchange control.

Gold jewelry producing and trading activities don’t have any negative effect on monetary policies, it said, adding that if gold jewelry is encouraged to produce and export, it will likely contribute to narrow the country’s trade deficit and curb inflation.

The Association also said that the circular draft’s requirement of at least 5 certificates/licenses for a gold jewelry product is not suitable with Government’s administration procedure simplication.

According to international customs,no countries have restriction on these activities, it noted.

The Draft Circular is scheduled to submit to Government within this month. – Stoxplus.com

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

Posted by VBN on Jun 24 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