Acts of violation in gold business activities in Vietnam

Acts of violation in gold business activities in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Acts of violation in gold business activities in Vietnam

According to Article 19 of Decree 24/2012/ND-CP, acts of violation of gold business include:

- Producing gold jewellery and fine arts without the Qualification certificate of gold jewellery and fine arts production issued by the State Bank.

- Purchasing and selling gold bars, importing and exporting gold materials without the license issued by the State Bank.

- Individuals bringing along gold when entering, exiting the country exceeding the limit prescribed by law without the written permission from the State Bank.

- Using gold as a mean of payment.

- Producing gold bars in contravention of this Decree.

- Conducting other gold business without being permitted by the Prime Minister licensed by the State Bank.

- Violations of other provisions of Decree 24/2012/ND-CP and other relevant law provisions.

2. Principles of gold business  management in Vietnam

Principles of gold business management in Vietnam according to Article 4 of Decree 24/2012/ND-CP are 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 this Decree.

- 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.

- 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.

3. Conditions for producing gold jewellery and fine arts in Vietnam

According to Clause 1, Article 5 of Decree 24/2012/ND-CP, enterprises producing gold jewellery and fine arts shall be issued with the Qualification certificate of gold jewellery and fine arts production when the following conditions are satisfied:

- The enterprise is established under law provisions that have registered to produce gold jewellery and fine arts in the Certificate of business registration.

- Having premises, facilities and necessary equipment serving the production of gold jewellery and fine arts.

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