Principles of management of gold business activities in Vietnam

Principles of management of gold business activities in Vietnam (Internet image)

Principles of management of gold business activities in Vietnam

Decree 24/2012/ND-CP on management of gold business activities, including: production and processing of gold jewellery and fine arts; purchase and sale of gold jewellery and fine arts; purchase and sale of gold bars; import and export of gold and other gold businesses, including gold trading via accounts and gold derivative activities.

Decree 24/2012/ND-CP is not applicable to gold exploitation and refinery by gold exploiting enterprises.

Decree 24/2012/ND-CP applies to organizations and individuals that carry out gold business in the territory of Vietnam and other agencies, organizations and individuals relating to gold business activities.

Principles of management of gold business activities in Vietnam include:

- 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 this Decree 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.

Organizations and individuals may only carry out other gold business activities after receiving permission from the Prime Minister and being granted a License by the State Bank.

Some terms regarding gold business activities in Vietnam

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 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

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

Gold business activities via accounts means gold trading via accounts in the form of deposit transactions and the net value shall be constantly re-evaluated in line with fluctuations in gold price.

Duong Chau Thanh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE