Draft Decree 24: Abolishing the monopoly on gold bars and granting licenses to business entities

The Director of the Foreign Exchange Management Department said the State Bank will regulate gold import limits through macroeconomic stabilization as well as implementing monetary policy and actual operations in the gold market.

Draft Decree 24 will abolish the State monopoly on gold bar production. (Photo: Vietnam+)

Issued in 2012, Decree 24/2012/ND-CP on gold market management plays an important role in controlling gold bar trading and raw gold import activities. However, after more than a decade of application, the amendment of Decree 24 has become urgent to adapt to the reality in order to overcome some shortcomings in the market, the difference between domestic gold price and world gold price as well as promote transparency and healthy competition in the gold market.

In recent times, in implementing the directions of competent authorities, the State Bank has presided over and coordinated with ministries and branches to evaluate and summarize the implementation of Decree 24 to provide orientations for gold market management in the new situation. In particular, immediately after General Secretary To Lam gave directions to improve the effectiveness of gold market management, the State Bank completed the draft Decree amending Decree 24 in line with the directions of the General Secretary.

To better understand the new points in the draft revised Decree 24 as well as how to manage the gold market in the future, VietnamPlus reporter interviewed Mr. Dao Xuan Tuan, Director of the State Bank's Foreign Exchange Management Department, about this issue.

- Could you tell us how the State Bank has thoroughly implemented the direction of the Party and State leaders on amending Decree 24, especially on the issue of managing the gold bar market?

Mr. Dao Xuan Tuan: Since the beginning of 2024, implementing the direction of competent authorities, the State Bank has coordinated with ministries, branches and the Gold Business Association to summarize and evaluate the implementation of Decree 24 on state management of the gold market, thereby proposing solutions suitable to the new market situation.

In particular, right after the direction of General Secretary To Lam, the State Bank institutionalized the direction of the General Secretary into the Draft Decree amendment.

Specifically, for the gold bar market, the Draft abolishes the State monopoly on gold bar production and licenses qualified enterprises and credit institutions to produce gold bars and simultaneously licenses gold imports to these units.

Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department of the State Bank. (Photo: Vietnam+)

In addition, the Draft Decree also links the responsibilities of units licensed to produce gold bars with product responsibility and warranty as well as responsibility for the products they produce.

Thus, there will be many gold bar brands in the market, thereby narrowing the gap between domestic and international gold prices. The State Bank will regulate the gold import limit through the implementation of macroeconomic stabilization as well as monetary policy and actual operations in the gold market. From there, the State Bank will also perform its role as state management of currency and management of the gold market.

- So for the gold jewelry market, what breakthrough mechanisms does the draft Decree have for the gold market to develop stably and healthily, sir?

Mr. Dao Xuan Tuan: The draft Decree amending Decree 24 stipulates that the State Bank will issue licenses to import raw gold to handicraft production enterprises, and at the same time issue licenses to credit institutions to perform the role of selling raw gold to handicraft jewelry production enterprises.

The State Bank finds that currently the number of enterprises producing and trading in gold jewelry is very large, about more than 6,000 enterprises, but the capital scale of the enterprises is often very small.

Therefore, to ensure that enterprises and credit institutions have sufficient financial capacity to import raw gold, the draft Decree stipulates that the State Bank shall grant licenses to enterprises and credit institutions to import raw gold (enterprises qualified to produce gold bars) to sell to enterprises producing gold jewelry. This regulation allows for an increase in the supply of raw gold but still ensures State control over the gold jewelry market.

The draft Decree also clearly stipulates that enterprises and credit institutions licensed to import gold must develop internal regulations on the import and sale of raw gold to ensure publicity and transparency; build an information system to fully and accurately store data on raw gold purchase and sale transactions, and connect to provide information to competent authorities in accordance with the provisions of law.

This regulation allows for an increase in the supply of raw gold while still ensuring State control over the gold jewelry market. The draft Decree also clearly stipulates that enterprises and credit institutions licensed to import gold must develop internal regulations on the import and sale of raw gold to ensure publicity and transparency; build an information system to fully and accurately store data on raw gold purchase and sale transactions, and connect to provide information to competent authorities in accordance with the law.

- In addition to eliminating the State monopoly on gold bar brands and increasing the supply of raw gold for the production of gold jewelry, what solutions is expected to be implemented by the State Bank to contribute to the effective management and sustainable development of the gold market?

Mr. Dao Xuan Tuan : The draft Decree amending Decree 24 has amended and supplemented the responsibilities of state agencies, ministries and localities in managing the gold market. The draft Decree also stipulates that the State Bank coordinates with relevant ministries and sectors to establish an information system, build and store data on the gold market, and connect to provide information to relevant agencies to increase transparency and effectively support management work.

Gold rings are still chosen by many people. (Photo: Vietnam+)

In the coming time, implementing the direction of General Secretary To Lam in the Conclusion Notice No. 211-TB/VPTW, the State Bank will continue to make efforts to implement proactive, flexible and timely monetary policies to contribute to ensuring macroeconomic stability and confidence in the Vietnamese currency, considering this a fundamental and long-term solution to convert resources from gold into economic development. On the other hand, it will urgently research and refer to international experience to propose the establishment of a National Gold Exchange; or allow gold to be traded on the Commodity Exchange...

In addition, agencies, ministries and branches are also interested in, researching, proposing and developing solutions for alternative investment channels to mobilize gold from people to invest in the economy; researching appropriate tax policies for gold trading transactions to improve transparency in the market as well as serving the goals of State agencies in managing the gold market.

Thank you very much!

According to Thuy Ha (Vietnam+)

Source: https://baogialai.com.vn/du-thao-nghi-dinh-24-bo-doc-quyen-vang-mieng-va-cap-phep-cho-don-vi-kinh-doanh-post328465.html