Government gives up monopoly on gold bar production

A decree it issued Tuesday allows the State Bank of Vietnam to grant licenses to companies that meet certain criteria, including having a permit for trading gold bars.

Banks need to have charter capital of at least VND50 trillion (US$1.9 billion) to qualify, while others need VND1 trillion.

Applicants must not be under administrative sanction for gold trading violations.

A person holds gold bars in a shop in Hanoi. Photo by VnExpress/Giang Huy

The State Bank of Vietnam will determine the procedures and documentation for obtaining production licenses.

Licensed producers must disclose standards, weight, purity, and product warranties, and maintain complete records of raw materials, production timelines and output.

They are required to make regular disclosures to the central bank.

Businesses trading gold bars must publicly display prices and transact directly with customers without the involvement of intermediaries.

They must ensure secure transactions and store customer ID, tax code and transaction values and provide this information to the central bank.

There are 38 companies, including banks, licensed to trade gold bars but only a few like Phu Nhuan Jewelry, DOJI, Saigon Jewelry Company, Vietcombank, VPBank, Techcombank, BIDV, MB, VietinBank, and Agribank meet the capital requirements.

The decree also requires gold transactions of VND20 million or more in a day by a single customer must be paid for through bank accounts for traceability.