Although state management agencies have proactively implemented many solutions to stabilize gold prices, the complicated developments of the gold market in recent times have created an urgent need to continue perfecting the legal framework and improving management efficiency.
In particular, the State Bank of Vietnam (SBV) has developed and completed a draft Decree amending and supplementing a number of articles of Decree 24/2012/ND-CP in the direction of marketization with a roadmap and strict control.
In an interview with Banking Times - the mouthpiece of the State Bank of Vietnam, Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department, said that this agency has completed the draft of Decree 24, which is amended in the direction of eliminating the State monopoly in the production of gold bars, the export of raw gold and the import of raw gold to produce gold bars.
Mr. Tuan said that the draft regulation stipulates that the State Bank of Vietnam will license a number of qualified businesses and banks to produce gold bars (instead of the current monopoly of SJC), to import raw gold to produce gold bars and to serve the needs of producing gold jewelry.
Based on macroeconomic and monetary developments, monetary policy objectives and gold market developments in each period, the State Bank will grant limits to enterprises and banks (collectively referred to as enterprises) that are qualified to import raw gold.
"This approach helps eliminate State monopoly while maintaining tight control over the gold bar market in both production and import of raw materials," said Mr. Dao Xuan Tuan.
According to the representative of the State Bank, the State's monitoring and control mechanism stipulated in the draft amendments and supplements to a number of articles of Decree 24 is also implemented through regulations requiring enterprises to announce applicable standards, weight, and gold content of products; linking the responsibility of enterprises to comply with legal regulations on weight and gold content standards of products in accordance with the announced weight and content standards.
Enterprises must develop internal regulations on buying and selling gold bars with customers, build an information system to ensure complete and accurate storage of gold bar buying and selling transaction data, and connect to provide information to competent authorities as prescribed.
Thus, the market will have more gold brands of enterprises and banks licensed by the State Bank to produce gold bars. People will have more choices, the market will be more competitive, and the large price difference between gold products and brands will be limited.
In addition, the draft Decree amends regulations on payment via accounts, use of electronic invoices... for gold trading transactions, thereby ensuring more transparency in gold bar transactions on the market.
To encourage the development of the domestic gold jewelry market, the draft decree of the State Bank of Vietnam grants licenses to enterprises and credit institutions to import raw gold (enterprises qualified to produce gold bars) to sell to gold jewelry manufacturing enterprises.
This regulation allows for an increase in the supply of raw gold but still ensures State control over the jewelry gold market.
Notably, the draft has clarified the roles and responsibilities of ministries, branches and localities in managing the gold market.
Accordingly, the State Bank of Vietnam coordinates with relevant ministries and branches to establish an information system, build and store data on the gold market, and connect and provide information to relevant agencies to increase transparency and effectively support management work.
Source: https://vietnamnet.vn/nhnn-se-cap-phep-cho-cac-don-vi-du-dieu-kien-san-xuat-vang-mieng-2410505.html
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