Forms of trading of gold bullion in Vietnam

Forms of trading of gold bullion in Vietnam (Internet image) 

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

1. Forms of trading of gold bullion in Vietnam

Forms of trading of gold bullion according to Article 7 of Circular 06/2013/TT-NHNN include:

- Direct trading of gold bullion;

- Trading of gold bullion through tender by price or by volume

2. Documents for trading of gold bullion in Vietnam

According to Article 8 of Circular 06/2013/TT-NHNN, trading of gold bullion each time between the State Bank with the credit institutions or enterprises is shown by the following documents:

- For direct trading:

+ Announcement of trading of gold bullion, announcement of trading price of the State Bank.

+ Application for registration of trading of gold bullion of the credit institutions or enterprises;

+ Announcement of trading volume of gold bullion of the State Bank;

+ Confirmation document of transaction

- For trading through tender

+ Announcement of tender, sale and purchase price (for tender by volume), floor price and ceiling price (for tender by price) of the State Bank.

+ Tender offer of the credit institutions or enterprises;

+ Announcement of tender result;

+ Confirmation document of transaction.

3. Responsibilities of the credit institutions or enterprises permitted for establishing the trading relation of gold bullion with the State Bank of Vietnam

Responsibilities of credit institutions and businesses that establish gold bar purchase and sale transaction relationships with the State Bank according to Article 19 of Circular 06/2013/TT-NHNN (amended in Circular 12/2023/TT-NHNN) as follows:

- Ensuring the quality and quantity of gold bullion sold to the State Bank;

- Ensuring the safety for the gold upon transport from or to the storage of the State Bank;

- Making payment and delivering gold in full and on time as stipulated in Circular 06/2013/TT-NHNN when purchasing and selling gold with the State Bank;

- Taking responsibilities for the authentication of competence of the transaction representative in the trading of gold bullion with the State Bank; Taking responsibilities for the obligation arising from the behaviour done by the transaction representative and from the trading of gold bullion confirmed by the transaction representative with the State Bank as stipulated in Circular 06/2013/TT-NHNN;

- Taking responsibilities for the truthfulness, accuracy and legality with respect to documents and dossiers sent to the State Bank related to the trading of gold bullion with the State Bank;

- In the case of division, separation, merger, consolidation, acquisition, transformation of legal form, dissolution, bankruptcy, the credit institutions or enterprises must notify in writing to the State Bank (State Foreign Exchange Reserve Management Department) within 05 (five) working days from the date of the decision of the competent state agencies of the division, separation, merger, consolidation, acquisition, transformation of legal form, dissolution and bankruptcy.

- After purchasing gold bullion from the State Bank, before 14h00 daily, the credit institutions or enterprises shall make a report to the State Bank (Foreign exchange management Department) on the use the gold bullion purchased from the State Bank in the preceding working day (under the form in Annex 4 together with Circular 06/2013/TT-NHNN). The report shall be ended when the credit institutions or enterprises use up the volume of gold bullion purchased from the State Bank.

- Other responsibilities are specified in Circular 06/2013/TT-NHNN.

4. Regulations on confirmation of transaction of gold bullion in Vietnam

According to Article 13 of Circular 06/2013/TT-NHNN, within 30 (thirty) minutes from the time of announcing volume, trading price with each institution or enterprise (for direct trading) or announcing tender result (for tender), the transaction representative of the institutions or enterprises may trade in gold bullion (for direct trading) or tender winning (for tender) must sign to certify the trading of gold bullion with the State Bank.

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