What conditions must be met to trade in gold bars?

In Resolution 44/NQ-CP dated April 5, 2024, from the online Government-Local Authorities Conference, the Government requested an urgent review and drafting of a decree amending, supplementing, or replacing Decree 24/2012/ND-CP on the management of the gold market to develop a stable, healthy, transparent, efficient, and sustainable gold market, preventing the "goldization" of the economy .

Currently, the authorities are considering amending Decree 24/2012/ND-CP.

According to current regulations (Decree 24/2012/ND-CP), the management of gold bullion trading is regulated as follows: Gold bullion trading by organizations and individuals can only be conducted at credit institutions and enterprises licensed by the State Bank of Vietnam to trade gold bullion.

The decree also stipulates the conditions for granting licenses to trade in gold bars.

Accordingly, businesses will be considered by the State Bank of Vietnam for a license to trade in gold bars when they meet the following conditions:

It is a business established and operating in accordance with the law.

Having a registered capital of 100 billion VND or more.

Must have at least two years of experience in the gold trading business.

Having paid taxes on gold trading activities of VND 500 million or more per year for the two most recent consecutive years (with confirmation from the tax authority).

Having a network of branches and sales locations in Vietnam in at least 3 provinces or centrally-governed cities.

Credit institutions are considered by the State Bank of Vietnam for a license to trade in gold bars when they meet the following conditions:

Having a registered capital of 3,000 billion VND or more.

Registered to conduct gold trading business.

It has a network of branches in Vietnam in five or more provinces or centrally-governed cities.

The State Bank of Vietnam stipulates the procedures and documents for granting licenses to businesses and credit institutions to trade in gold bars.

This decree also stipulates the responsibilities of businesses and credit institutions engaged in the buying and selling of gold bars.

Businesses and credit institutions engaged in the buying and selling of gold bars have the following responsibilities:

Only the specified types of gold bars may be bought and sold.

Trading in gold bars through authorized dealers is not permitted.

Comply with legal regulations regarding accounting procedures, and the preparation and use of invoices and supporting documents.

The buying and selling prices of gold bars must be publicly displayed at the point of sale.

There are measures and equipment in place to ensure safety in business operations.

Comply with the provisions of this Decree and other relevant laws.

At 10:00 AM tomorrow, April 22, 2024 (Monday), the State Bank of Vietnam will officially begin its first gold auction after an 11-year hiatus.

The bidding process will take place at the State Bank of Vietnam's Foreign Exchange Management Department, 25 Ly Thuong Kiet Street (Hoan Kiem District, Hanoi ).

According to the State Bank of Vietnam, the bidding method is price-based bidding.

The total volume of gold bars expected to be auctioned is 16,800 taels. The volume of gold bars in each lot is 100 taels.

According to regulations, the type of gold bars sold are SJC gold bars, which are produced by the State Bank of Vietnam.

Bidders will place a deposit at a rate of 10%. The reference price for calculating the deposit is 81.80 million VND/ounce (this price is only for deposit purposes).

The minimum bidding volume a member is allowed to bid on is 14 lots, equivalent to 14,000 ounces of gold.

The maximum bid volume a member is allowed to submit is 20 lots, equivalent to 20,000 ounces of gold.

The bidding increment is 10,000 VND/ounce.

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