Procedures for applying for a business license to buy and sell gold bars for credit institutions in Vietnam

Procedures for applying for a business license to buy and sell gold bars for credit institutions in Vietnam (Internet image)

The State Bank of Vietnam issued Decision 109/QD-NHNN dated 19/01/2023 announcing the amended administrative procedures in the field of foreign exchange activities performed at the Single-Window Department under the management function of the State Bank of Vietnam.

Thus, the procedures for applying for a business license to buy and sell gold bars for credit institutions are as follows:

1. What are gold bars? 

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

In addition, Decree 24/2012/ND-CP also stipulates some types of gold as follows:

- Gold jewellery and fine arts of which the gold content is 8 Carat (equivalent to 33.33%) or above that have been processed and fashioned to serve adornment and fine arts.

- Gold material means gold bullions, bars grains, pieces and other types.

(Clause 1, 2, 3, Article 3 of Decree 24/2012/ND-CP)

2. Conditions for applying for a business license to buy and sell gold bars for credit institutions in Vietnam

- Having a charter capital of 3,000 (three thousand) billion VND or more.

- Having registered gold business activities.

- Having a network of branches in Vietnam from 5 (five) provinces or centrally-run cities or more.

3. Components of the application for a business license to buy and sell gold bars to credit institutions in Vietnam

- An application form for a business license to buy and sell gold bars.

- List of registered locations as business locations for buying and selling gold bars (headquarters, branches, transaction offices).

- Certificate of branch operation registration and a document showing that the registered location as a business location for buying and selling gold bars according to the list at Point 2 above has been registered for business or has been notified to the competent business registration agency as prescribed by law.

4. Procedures for applying for a business license to buy and sell gold bars for credit institutions in Vietnam

- Step 1: Credit institutions submit documents to the State Bank of Vietnam

- Step 2: After receiving the complete and valid application, the State Bank of Vietnam shall notify the State Bank branch in the province or city to check the situation of the necessary equipment to carry out activities of buying and selling gold bars at locations registered as trading places for buying and selling gold bars.

- Step 3: Within 07 (seven) working days from the date of receipt of the notice from the State Bank of Vietnam, the State Bank's branches in provinces and cities shall report the inspection results to the State Bank  Vietnam (Department of Foreign Exchange Management).

- Step 4: Within 30 working days from the date of receipt of complete and valid documents from the credit institution, the State Bank shall grant or refuse to grant a business license to buy and sell gold bars.

- Submission methods:

+ Head office of administrative agencies (directly at the Single-Window Department); or

+ Via postal service.

- Processing time: 30 working days from the date of receipt of complete and valid dossiers

- Agency implementing administrative procedures: State Bank of Vietnam (Foreign Exchange Management Department)

- Fee: no

Decision 109/QD-NHNN takes effect from February 15, 2023.

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE