The State Bank will study and guide gold trading on accounts.

Will allow gold trading on account

Enterprises, commercial banks, and associations that contributed comments to amending the draft Decree 24 on gold trading said that the State Bank should research and develop a legal framework and roadmap to allow the implementation of other products to support market liquidity such as: gold futures, gold certificates, gold savings/loans, national gold trading floors, etc.

These units proposed that the State Bank consider adding provisions allowing enterprises and credit institutions that produce gold bars; export and import gold bars and raw gold to implement tools to hedge against price fluctuation risks with gold accounts or the international market.

Propose that the State Bank study and supplement regulations allowing enterprises and credit institutions with licenses to import gold bars and raw gold to buy gold futures from abroad.

Gold account will be studied in the near future.

Propose to supplement the mechanism allowing credit institutions with licenses to export and import gold bars and raw gold; and with licenses to produce gold bars to authorize subsidiaries of the credit institution to carry out activities under the license of the credit institution.

Explaining the above opinions in the report sent to the units, the State Bank said that Clause 2, Article 112 of the Law on Credit Institutions stipulates, "The Governor of the State Bank shall prescribe the scope of foreign exchange, provision of foreign exchange services, provision of derivative products; conditions, documents and procedures for approving foreign exchange trading, provision of foreign exchange services, trading and provision of derivative products by commercial banks".

After the Decree amending and supplementing Decree 24 is issued, the State Bank will review, amend and add relevant regulations to create a basis for commercial banks to be able to provide gold derivative products.

When using derivative instruments, enterprises must perform accounting according to the regulations of the Ministry of Finance in Circular 210/2009, guiding the application of international accounting standards on financial statement presentation and information disclosure for financial instruments in Vietnam.

The State Bank will coordinate with relevant agencies to consider adding gold to the list of goods allowed to be traded at commodity exchanges (according to Decree 158/2006 of the Government detailing the Law on Commerce on the purchase and sale of goods through commodity exchanges).

Gold trading activities on accounts will be studied and guided along with the establishment of a centralized gold exchange. In draft Decree 24, the State Bank proposed not to amend this provision.

Commercial banks participate in the production and trading of gold bars

According to the Gold Business Association, if Decree 24 is added to Decree 24, the regulation that credit institutions are considered by the State Bank for granting licenses to produce gold bars will be inconsistent with the provisions of the Law on Credit Institutions.

However, regarding the above proposal, the State Bank's explanation stated that, based on Article 114 of the Law on Credit Institutions 2024, commercial banks are allowed to trade in gold according to the regulations of the Governor of the State Bank.

Licensing businesses and commercial banks to participate in the production and trading of gold bars is necessary in the current period, ensuring a more competitive, public and transparent gold market, and has been specifically explained by the State Bank in reports and submissions sent for public comments.

Accordingly, closely following the General Secretary 's direction on eliminating the state monopoly mechanism on the controlled production of gold bars, the State still manages the production of gold bars. Draft Decree 24 stipulates the conditions for granting licenses to produce gold bars with the aim of selecting enterprises and commercial banks with sufficient financial capacity and compliance with the law on gold trading activities to produce gold bars.