Do enterprises have to have sales network to be eligible for the License to trade gold bars in Vietnam?

Do enterprises have to have sales network to be eligible for the License to trade gold bars in Vietnam?

Pursuant to Article 11 of Decree 24/2012/ND-CP stipulating conditions for obtaining the License to trade gold bars as follows:

1. Enterprises are eligible for the License to trade gold bars when the following conditions are satisfied:

a) Being established and operated under law provisions.

b) Having the charter capital of 100 billion VND and above.

c) Having 2-year experience in gold trading or more.

d) 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).

đ) Having branches and sale offices in 3 (three) provinces and centrally-affiliated cities or more in Vietnam.

2. Credit institutions are eligible for the License to trade gold bars when the following conditions are satisfied:

a) Having charter capital of 3,000 (three thousand) billion VND and above.

b) Having registered gold business.

c) Having branches and sale offices in 5 (five) provinces and centrally-affiliated cities or more in Vietnam.

3. The State Bank shall stipulats the procedures and dossiers on the License to trade gold bars applicable to enterprises and credit institutions.

Thus, in order to trade in gold bars, an enterprise or a credit institution must be established according to the above provisions. One of the conditions for an enterprise to be considered for a License to trade gold bars is to have a network of branches and sale offices in Vietnam from 3 (three) provinces and centrally-affiliated cities or more in Vietnam. 

In addition, enterprises also need to meet the conditions of charter capital, experience, and paid taxable revenue to apply for this business license in Vietnam.

For an enterprise, what does dossier of request for granting a gold bar trading license in Vietnam comprise?

According to Article 9 of Circular 16/2012/TT-NHNN as amended by Clause 2, Article 1 of Circular 03/2017/TT-NHNN, the application for a license to buy and sell gold bars is as follows:

1. The application for License to trade gold bullion submitted by an enterprise includes:

a) The application for License to trade gold bullion (using the template stated in the Appendix 2 enclosed herewith);

b) The list of locations registered as gold bullion trading locations (head office, branches or business locations);

c) Certificate of enterprise registration, Certificate of registration of branch’s operation and documents proving that locations registered as gold bullion trading locations according to the list mentioned in Point b of this Clause have been registered with or reported to the competent business registration agency under effective regulations of law;

d) Certificate granted by the tax agency to certify the amount of tax arisen from gold trading activities paid within 02 (two) previous years.

2. The application for License to trade gold bullion submitted by a credit institution includes:

a) The application for License to trade gold bullion (using the template stated in the Appendix 3 enclosed herewith);

b) The list of locations registered as gold bullion trading locations (head office, branches or transaction offices);

c) Certificate of enterprise registration, Certificate of registration of branch’s operation and documents proving that locations registered as gold bullion trading locations according to the list mentioned in Point b of this Clause have been registered with or reported to the competent business registration agency under effective regulations of law.

According to this Article, enterprises need to prepare the above documents to apply for a License to trade gold bars in Vietnam.

What is duration of procedures for granting gold bar trading licenses in Vietnam? 

According to Clause 4, Article 15 of Circular 16/2012/TT-NHNN stipulating procedures for granting gold bar trading licenses as follows:

4. Within 30 (thirty) working days after receiving a complete and valid dossier from an enterprise or a credit institution, the State Bank shall grant or refuse to grant (clearly stating the reason) a gold bar trading license; gold material export license or gold material import license (made according to the form in Annex 13, 14 or 15 of this Circular). The gold bar trading license granted by the State Bank to a credit institution is an integral part of the credit institution's establishment and operation license.

Thus, the enterprise will be granted a License to trade gold bars in Vietnam within 30 (thirty) working days after receiving a complete and valid dossier from an enterprise or a credit institution.

Best Regards!