The Prime Minister of Vietnam: To stabilize the price of gold bars compared to the global gold price and request the State Bank of Vietnam to manage and regulate gold bar prices?
- The Prime Minister of Vietnam: To stabilize the price of gold bars compared to the global gold price and request the State Bank of Vietnam to manage and regulate gold bar prices?
- What are the conditions for enterprises to be eligible for the License to trade gold bars in Vietnam?
- Vietnam: What does gold bars mean?
The Prime Minister of Vietnam: To stabilize the price of gold bars compared to the global gold price and request the State Bank of Vietnam to manage and regulate gold bar prices?
In the urgent Official dispatch 1426/CĐ-TTg in 2023, the Prime Minister has instructed the State Bank of Vietnam to implement the following measures:
a) Monitor closely the fluctuations in global and domestic gold prices and promptly implement solutions to stabilize the gold market; proactively develop scenarios and plans to respond to fluctuations in global and domestic gold prices, using appropriate and effective tools to contribute to the development of the economy and society, macroeconomic stability, and prevent the "goldization" of the economy from negatively impacting exchange rates, interest rates, monetary and foreign exchange markets, financial safety and security.
b) Urgently find effective solutions to manage and control the price of gold in the domestic market based on market principles, and prevent the high price difference between domestic and international gold prices that has negatively affected macroeconomic management. Report the results of implementation in January 2024.
c) Strengthen inspection, examination, control, and comprehensive monitoring, with a focus on the gold market and the activities of gold trading businesses, stores, distributors, and buyers and sellers of gold bars and other market participants. Timely detect any weaknesses or shortcomings and take proactive and effective measures within the authority, report any matters beyond the authority, propose appropriate remedies, and strictly handle violations of regulations, especially smuggling, profiteering, speculation, manipulation, and abuse of policies to manipulate gold prices, which could cause market instability and insecurity. In case of detecting any violations in gold business activities, promptly transfer documents and records to competent authorities for strict, transparent, and legal processing.
d) Conduct an overall and comprehensive assessment of the domestic gold market and state management of the gold market, including production, trading of gold bars, SJC branded gold, gold jewelry, etc. Identify specific achievements, limitations, shortcomings, and causes, and draw lessons and experiences to propose management solutions in the coming period, ensuring strict compliance, feasibility, effectiveness, and stability of the gold, foreign exchange, and monetary markets, and contributing to limiting the "goldization" of the economy and ensuring financial security and national currency.
e) Review the legal framework, mechanisms, and policies related to the management of the gold market and gold trading activities, including gold bars and jewelry. At the same time, review the implementation of Decree No. 24/2012/ND-CP dated April 3, 2012, of the Government on the management of gold trading activities to timely propose the competent authority to consider revising, supplementing, and improving regulations to enhance the effectiveness of state management tools for the gold market, and develop transparent, healthy, effective, and sustainable market, to be completed in January 2024.
f) Proactively provide timely official and transparent information on financial, monetary, foreign exchange, and gold market management policies to strengthen trust in the value of the Vietnamese dong and stabilize public sentiment, creating social consensus.
Therefore, in the Official dispatch 1426/CĐ-TTg in 2023, in order to stabilize and develop a safe, healthy, effective, and sustainable gold market, the Prime Minister has urgently requested the State Bank of Vietnam to find effective solutions to manage and control the price of gold in the domestic market based on market principles, and prevent the high price difference between domestic and international gold prices that has negatively affected macroeconomic management. Report the results of implementation in January 2024.
The Prime Minister of Vietnam: To stabilize the price of gold bars compared to the global gold price and request the State Bank of Vietnam to manage and regulate gold bar prices?
What are the conditions for enterprises to be eligible for the License to trade gold bars in Vietnam?
Pursuant to the provisions of Clause 1, Article 11 of Decree 24/2012/ND-CP, enterprises are eligible for the License to trade gold bars when the following conditions are satisfied:
- Being established and operated under law provisions.
- Having the charter capital of 100 billion VND and above.
- Having 2-year experience in gold trading or more.
- Having paid the tax on gold business of 500 (five hundred) million VND/year or above during the two latest successive years (upon verification of the tax authority).
- Having branches and sale offices in 3 (three) provinces and centrally-affiliated cities or more in Vietnam.
Vietnam: What does gold bars mean?
Pursuant to the provisions of Clause 2, Article 3 of Decree 24/2012/ND-CP, Gold bars means gold molded into bars, engraved with letters, weight indicators, quality, the symbol and the sign of producing enterprises and credit institutions licensed by the State Bank of Vietnam (hereinafter referred to as the State Bank) to produce, or gold bars produced by the State Bank’s in each specific period.
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