Auctions of gold bars prepared by the State Bank of Vietnam after 11 years? Are there proposals for amendments and supplements to the Decree on gold business activities in Vietnam?
Auctions of gold bars prepared by the State Bank of Vietnam after 11 years?
The State Bank of Vietnam has announced that it has completed preparations for the auction of gold bars in order to increase the supply of gold in the market. Therefore, after 11 years, the State Bank is returning to organizing gold bar auctions.
- Enterprises will have to deposit to participate in the auction of gold bars.
- Regarding more specific information on these activities, the State Bank stated that it will send a notice of the auction one day before the auction.
- After announcing the floor price, credit institutions and gold trading businesses will begin to fill out bidding forms.
- The aforementioned entities will have 30 minutes to make decisions on the quantity and purchase price.
- One hour after the bidding closes, the State Bank will announce the results.
- Enterprises will have to deposit to participate in the auction, no later than 5:00 pm on the day of receiving the auction notice.
- Currently, there are 26 entities, including commercial banks and gold trading businesses, that have established gold trading relationships with the State Bank.
In addition, it is further reported that there are 15 entities eligible to participate in the auction of gold bars.
As of now, there are approximately 15 entities eligible to participate in the auction. The type of gold being auctioned is SJC gold bars.
The first auction session for gold bars was organized on March 28, 2013. In 2013, the State Bank organized 76 auction sessions for the sale of gold bars, with a total winning volume of 1.819.900 taels out of a total bid volume of 1.932.000 taels.
At that time, the price of SJC gold was still about 4.2 million dong per tael higher than the world gold price.
Source: Government Information Portal
Auctions of gold bars prepared by the State Bank of Vietnam after 11 years? Are there proposals for amendments and supplements to the Decree on gold business activities in Vietnam? (Image from the Internet)
Are there proposals for amendments and supplements to the Decree on gold business activities in Vietnam?
Regarding Decree 24, the State Bank of Vietnam has submitted a report evaluating the implementation process and has proposed some directions for amendments and additions to Decree 24, which will be implemented in the near future.
Regarding the gold market, this morning the Government Office issued Announcement No. 160 of the Prime Minister at the meeting on solutions to manage the gold market in the coming period.
In this Announcement, the Prime Minister requested the State Bank of Vietnam to take the lead, coordinate with relevant agencies to strictly implement the regulations in Government's Decree 24/2012/ND-CP.
The Prime Minister also requested the State Bank of Vietnam to take the lead, coordinate with relevant agencies to enhance the application of information technology and digital transformation in the supervision, management, and operation of the gold market.
In particular, there must be a firm requirement for electronic invoices in the implementation of gold buying and selling transactions.
"The licenses of businesses that do not strictly comply with the regulations of the law must be revoked," the Prime Minister requested.
In addition, continue to study, review, and thoroughly evaluate the impacts and fully summarize the implementation of Decree 24 to propose appropriate amendments and additions in line with the practical situation, domestic and international economic developments.
Prevent the goldization of the economy, and prevent the impact of gold price fluctuations on exchange rates, inflation, macroeconomic stability, and enhance the role of state management and regulation of the gold market.
The Prime Minister also requested strict handling of violations of the law such as smuggling of gold across borders, profiteering, speculation, manipulation, and exploitation of policies to hoard goods and push up prices by relevant organizations and individuals, causing instability and insecurity in the gold market.
The State Bank of Vietnam and relevant ministries and agencies are urged to implement their assigned tasks and solutions to stabilize and manage the gold market promptly, seriously, fully, and effectively. Timely report to the competent authorities on issues that exceed their jurisdiction.
Source: Government Information Portal
What are the principles of management of gold business activities in Vietnam?
Pursuant to Article 4 of Decree 24/2012/ND-CP, the principles of management of gold business activities are clearly stated as follows:
- Organizations’ and individuals’ gold ownership is recognized and protected by law.
- The State Bank is the agency that, on behalf of the Government, uniformly manages gold business activities in accordance with provisions of Decree 24/2012/ND-CP.
- The State shall exclusively produce gold bars, export gold material and import gold material for production of gold bars.
- The gold business must be managed in order to sustainably develop and stabilize the gold market, ensuring the production and processing of gold jewellery and fine arts to serve the domestic market and export in accordance with law provisions.
- Organizations and individuals doing gold business must comply with Decree 24/2012/ND-CP and other relevant law provisions.
- The purchase and sale of gold bars; the production of gold jewellery and fine arts are conditional business and must be permitted by the State Bank by issuing the License to trade gold bar or the Qualification certificate of gold jewellery and fine arts production.
- The business of gold jewellery and fine arts is conditional and not subject to the qualification certificate of business.
- Gold derivative activities made by commercial banks and branches of foreign banks must comply with Article 105 of the Law on credit institutions 2010.
- Gold business activities, except gold import and export, purchase and sale of domestic gold material by enterprises producing gold jewellery and fine arts and enterprises trading gold jewellery and fine arts and other activities stipulated in Clause 6, 7 and 8 of Article 4 of Decree 24/2012/ND-CP, are those in the list of restricted goods and services. Organizations and individuals shall be only entitled to do gold business after being approved by the Prime Mister and licensed by the State Bank.
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