The Vietnam Gold Trading Association (VGTA) recently sent a document to provide comments on the draft amendments and supplements to Decree 24 on gold market management. The association suggested that credit institutions, especially commercial banks, should not be added to the list of participating in the production and trading of gold bars.
The above unit cited the Law on Credit Institutions, which stipulates that commercial banks do not have the function of producing gold. The main tasks of commercial banks are currency trading (especially credit activities) and providing payment services.
"If commercial banks are allowed to participate in the production and trading of gold bars, commercial banks will be forced to use a large amount of capital to invest in factories, machinery, and training of workers, and invest in areas that are not within their main functions and tasks of providing credit and capital support to production and trading enterprises to achieve economic growth targets," the Vietnam Gold Trading Association stated.
Commercial banks are not specialized organizations in gold production and trading, and history has proven that commercial banks were ineffective in producing and trading gold bars before 2012. Some commercial banks have left behind long-term unintended consequences, but thanks to the effective and determined direction of the State Bank, they have been stabilized.
When abolishing the gold bar monopoly mechanism, the Gold Business Association suggested that banks should not participate in gold bar production due to concerns about the consequences (Photo: Manh Quan).
Another issue of concern that VGTA believes needs to be considered is the regulation on conditions for granting a license to produce gold bars for enterprises with charter capital of VND1,000 billion or more.
According to the explanation of the association, currently there are only 3 enterprises that meet this charter capital requirement. Therefore, the number of enterprises that can participate in gold bar production is still insignificant, leading to the market still being able to fall into a state of monopoly in the production and supply of gold bars.
The association recommends that a charter capital of VND500 billion or more is appropriate. In addition, it is necessary to focus on the production capacity of the enterprise, business efficiency, business reputation, brand in the market, design and quality of gold bars; and compliance with state regulations related to gold trading.
Regarding the annual quota and license for each export, import of gold bars and import of raw gold for gold bar manufacturing enterprises in the draft, the Association believes that it should be considered to be removed.
Because this regulation increases sub-licenses, increases administrative procedures for businesses, hinders gold bar export activities, and regenerates foreign currency for the country. At the same time, it loses production and business opportunities for businesses because the world gold market fluctuates continuously and is affected by many factors.
The Association also proposed that the State Bank only issue annual quotas for gold bar import and export and raw gold import, allocated to each enterprise from the first quarter of the year according to the principles of publicity, transparency, and no sub-licenses.
On that basis, enterprises proactively choose the time and volume (within the limit) to import or export to achieve the highest efficiency. Enterprises periodically report on the implementation of the gold import and export limit to the State Bank.
The State Bank will consider and decide on the adjustment of the limit. In addition, the Association recommends that the Drafting Committee consider the mechanism to encourage the import of raw gold to produce gold bars and jewelry to meet domestic market demand and serve export and foreign currency regeneration, and should not create a mechanism for commercial activities (import and export of gold bars).
Early last year, VGTA also proposed and recommended to the management to allow 3 enterprises, PNJ, SJC, DOJI, to import 1.5 tons of gold/year, equivalent to each enterprise importing 500kg of gold/year. Accordingly, the enterprises will not import a total of 1.5 tons of gold at once, but will be divided into several imports, depending on the decision of the State Bank.
The association proposed to import raw gold for businesses to make gold jewelry. The three proposed units are all the largest gold trading companies in the industry. However, the above proposal also received many opinions.
Some people think that gold purchases can be controlled by assigning annual quotas to units. Others argue that removing the State Bank's monopoly on gold imports would help domestic and international gold prices to be more connected...
Source: https://dantri.com.vn/kinh-doanh/kien-nghi-khong-cho-phep-ngan-hang-tham-gia-san-xuat-vang-mieng-20250619173510432.htm
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