03 measures for intervention and stabilization of the gold market in Vietnam

03 measures for intervention and stabilization of the gold market in Vietnam​ (Image from the internet)

03 measures for intervention and stabilization of the gold market in Vietnam

Pursuant to Clause 3 Article 16 of Decree 24/2012/ND-CP, the State Bank of Vietnam shall intervene and stabilize the gold market through the following measures:

- Export and import of raw gold according to the provisions of Clause 1 Article 14 of Decree 24/2012/ND-CP.

- Organize and manage the production of gold bars by deciding the limits, timing, and method of conducting gold bar production suitable for each period. The cost of organizing gold bar production is recorded into the operational expenses of the State Bank.

- Purchase and sell gold bars on the domestic market and organize the mobilization of gold as regulated by the Prime Minister of the Government of Vietnam.

Violations in gold trading activities in Vietnam

According to Article 19 of Decree 24/2012/ND-CP, violations of legal provisions in gold trading activities include:

- Producing gold jewelry and fine arts without a Business Qualification Certificate issued by the State Bank.

- Trading, buying, and selling gold bars; exporting and importing raw gold without a license issued by the State Bank.

- Carrying gold upon entry, exit of individuals exceeding the prescribed level without a license issued by the State Bank.

- Using gold as a means of payment.

- Producing gold bars contrary to the provisions of Decree 24/2012/ND-CP.

- Other gold business activities not permitted by the Prime Minister of the Government of Vietnam and without a license issued by the State Bank.

- Violations of other provisions in Decree 24/2012/ND-CP and other related legal regulations.

Principles for gold trading management in Vietnam

Principles for gold trading management according to Article 4 of Decree 24/2012/ND-CP are as follows:

- The legal ownership of gold by organizations and individuals is recognized and protected in accordance with the law.

- The State Bank represents the Government of Vietnam in the unified management of gold trading activities according to the provisions of Decree 24/2012/ND-CP.

- The State monopolizes the production of gold bars, export of raw gold, and import of raw gold for the production of gold bars.

- Manage gold trading activities to ensure the stable and sustainable development of the gold market, ensuring the production, processing of gold jewelry, and fine arts to serve the domestic market and export according to legal regulations.

- Organizations and individuals engaged in gold trading must comply with the regulations of Decree 24/2012/ND-CP and other relevant legal regulations.

- Trading activities of buying, selling gold bars; production of gold jewelry and fine arts are conditional businesses and must be licensed by the State Bank for gold bar trading or received a Business Qualification Certificate for the production of gold jewelry and fine arts.

- Trading activities of buying, selling gold jewelry and fine arts are conditional businesses for which no business qualification certificate is required.

- Derivative gold activities of commercial banks, branches of foreign banks are conducted according to Article 105 of the Law on Credit Institutions.

- Other gold trading activities, excluding exporting, importing gold, domestic trading of raw gold by enterprises producing gold jewelry, fine arts, and enterprises engaging in buying, selling gold jewelry and fine arts and activities regulated in clauses 6, 7, 8 Article 4 of Decree 24/2012/ND-CP, are classified under the category of goods and services restricted in trading.

Organizations and individuals are only authorized to conduct other gold trading activities after being permitted by the Prime Minister of the Government of Vietnam and obtaining a license from the State Bank.

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