State Bank: Will eliminate monopoly on gold bar production, tighten supervision

(Chinhphu.vn) - The State Bank of Vietnam (SBV) is finalizing a draft amendment to Decree 24 in the direction of controlled marketization, gradually eliminating the monopoly on gold bar production. The new mechanism allows more qualified enterprises to participate, while strengthening control to ensure transparency and stability.

Mr. Dao Xuan Tuan - Director of Foreign Exchange Management Department, State Bank of Vietnam

There will be more gold bar brands

In recent times, the mechanism and policies for managing the gold market in Vietnam have been gradually improved, in which the State Bank has proactively implemented many management solutions to stabilize gold prices, contributing to maintaining the macro economy . However, given the complicated developments of the gold market, it is necessary to continue to improve the legal framework and improve management efficiency.

Implementing the direction of General Secretary To Lam and competent authorities, the State Bank of Vietnam (SBV) has coordinated with ministries and branches to comprehensively evaluate the implementation of Decree No. 24/2012/ND-CP, thereby providing orientations for gold market management in line with the new situation. The review results are the basis for SBV to complete the draft revised Decree, closely following the direction of Party and State leaders.

Speaking to the press, Mr. Dao Xuan Tuan - Director of the Foreign Exchange Management Department of the State Bank of Vietnam shared: One of the notable highlights of this draft is the direction to eliminate the State monopoly in the production of gold bars, export and import of raw gold. Accordingly, the State Bank of Vietnam will grant licenses to qualified enterprises and commercial banks to participate in the above activities.

However, despite expanding the scope of gold bar production, the draft still maintains the principle of strict control. The State Bank will base on macroeconomic developments, monetary policies and the gold market situation in each period to grant import quotas for raw gold for businesses allowed to participate in the market.

The State supervision mechanism is strengthened through specific regulations. Enterprises must announce the applicable standards, weight and gold content in the product. They are legally responsible for any deviation from the announced standards. In addition, enterprises must build an internal information system to ensure complete and accurate storage of gold bar transaction data and connect to provide this information to competent authorities according to legal regulations.

Another important new point is that the draft stipulates that all gold bar transactions on the market must use electronic invoices and be paid through bank accounts. This is to ensure transparency in gold trading activities and avoid cash transactions that are difficult to control.

With this mechanism, there will be more gold bar brands produced by qualified businesses and banks licensed by the State Bank of Vietnam on the market. This will not only help people have more choices, but also promote healthy competition, limiting the current gold price difference between brands.

Increase supply of raw gold for manufacturing, develop jewelry market

Along with amending regulations on gold bars, the State Bank also aims to develop the domestic gold jewelry market, gradually turning Vietnam into a center for manufacturing and exporting high-quality gold jewelry in the region.

According to the current Decree 24, businesses wishing to trade in gold jewelry only need to meet the conditions and do not need to apply for permission from the State Bank. However, to produce gold jewelry, businesses must still have a certificate of eligibility from the State Bank if they want to import raw gold. In reality, most import licenses are only granted to businesses with foreign currency revenue to produce gold jewelry for export. The remaining businesses must balance raw materials from the domestic market.

However, through the review process, many businesses in the industry have proposed that the State Bank allow the import of raw gold for production purposes, not just limited to the export group. Currently, there are more than 6,000 businesses producing and trading in gold jewelry and fine art, but most of them have small capital scale, making it difficult to meet the conditions for direct import.

"Therefore, this revised draft stipulates that the State Bank will grant licenses to import raw gold to businesses and credit institutions that are qualified to produce gold bars. These units will supply raw materials to businesses that produce gold jewelry. This mechanism will both help increase the supply of raw gold and maintain the State's strict control over the gold jewelry market," said Mr. Dao Xuan Tuan.

The draft also requires businesses and credit institutions licensed to import raw gold to publicize internal regulations related to the import and sale of raw gold; at the same time, build an information system to fully store transaction data and connect with management agencies to ensure transparency.

In addition, the State Bank also proposed to amend and supplement the responsibilities of State agencies, ministries and localities in managing the gold market. An inter-sectoral coordination mechanism will be established to build and share data on the gold market, contributing to enhancing operational efficiency.

According to the representative of the State Bank, in the coming time, implementing Conclusion No. 211-TB/VPTW of the General Secretary , the State Bank will continue to implement a flexible and proactive monetary policy to stabilize the macro economy and maintain confidence in the Vietnamese currency. Controlling the gold market and reducing negative impacts on exchange rates and inflation is also part of the macro management strategy.

Notably, the State Bank is studying the model of establishing a National Gold Exchange or putting gold into trading on the Commodity Exchange. At the same time, relevant ministries and branches will continue to study solutions to mobilize gold resources from the people into the economy through alternative investment channels, while building tax policies suitable for gold transactions to improve transparency and serve the goal of effective management.

Mr. Minh

Source: https://baochinhphu.vn/nhnn-se-xoa-doc-quyen-san-xuat-vang-mieng-siet-chat-giam-sat-10225061120150432.htm