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Banking & Finance

SBV seeking comments on amendment to gold management decree

Released at: 22:01, 13/12/2017

SBV seeking comments on amendment to gold management decree

Illustrative image (Photo: news.zing.vn)

Central bank proposing elimination of business licenses for gold jewelry and fine arts production.

by Quang Huy

The State Bank of Vietnam (SBV) is collecting comments on a draft amendment to Decree No. 24 from 2012 on gold trading management, with the proposed elimination of business conditions for producing gold jewelry and fine arts being the prominent feature.

Along with the goal of continuing to manage the gold bar market, the amendment aims to simplify administrative procedures and reduce business conditions.

Enterprises that manufacture gold jewelry and fine arts need only meet the establishment conditions in the law to be registered. Other rules on certificates of production and technical facilities will be eliminated.

Some 5,800 enterprises hold certificates for gold jewelry and fine art production but problems exist in the operation of these types of enterprises, according to the SBV, with administrative procedures needing to be simplified.

For gold bar trading activities, the SBV also suggests reducing regulations on procedures for adjusting business licenses in the spirit of cutting unnecessary costs for enterprises.

The SBV does not regulate changes to the location of gold trading. In the past, banks and enterprises permitted to trade gold bars need only conduct business at places shown on their licenses. There are two activities added, including gold mobilization from organizations and individuals and trading gold on the account.

Prior to the implementation of Decree No. 24 in 2012, the gold market fluctuated sharply. The mobilization and lending of gold affected the liquidity of the banking system and the interests of individuals and also created economic instability.

After five years of implementation, the decree has curbed the status of gold in the economy and helped stabilize the gold market. Movements in the gold market have no links with fluctuations in the exchange rate and the foreign exchange market and does not affect macroeconomic stability. 

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