Recent Violations at Four Enterprises and Two Banks
The State Bank of Vietnam’s Inspectorate has recently announced violations at four enterprises and two banks, including Bao Tin Minh Chau. The enterprise was found to be in violation of e-commerce regulations, utilizing digital technology for gold trading.
Specifically, the company failed to disclose on its website information about transportation and delivery, the process of receiving and handling customer complaints, and dispute resolution mechanisms related to contracts concluded on the e-commerce website. The enterprise also lacked a policy to ensure the safety and security of personal information collected and used on the website…
The State Bank Inspectorate discovered that Bao Tin Minh Chau had violated the law and even showed signs of criminal offenses in gold trading activities. The case has been transferred to the Ministry of Public Security for investigation. The enterprise was also administratively fined VND 2.64 billion for violations of regulations on anti-money laundering and reporting of gold bar trading.
How Does Bao Tin Minh Chau Operate?
Bao Tin Minh Chau is a well-established brand in Hanoi, alongside a chain of stores that start with the word “Bao Tin,” such as Bao Tin Manh Hai, Bao Tin Thanh Van, and Bao Tin Hong Quan. The predecessor of these gold shops, named “Vang Bao Tin,” was founded by Mrs. Luong Thi Diem (born in 1936) in Thuong Tin, Hanoi.
During the resistance war against the French, Mrs. Diem and her husband, Mr. Vu Van Kham, participated as civilian volunteers, transporting ammunition and essential goods for the Dien Bien Phu campaign. Afterward, the family moved from Thanh Hoa to Phu Ly and eventually settled in Van Dien, which is now part of Hanoi.
Mrs. Diem naturally transitioned into the jewelry business. While trading at the market entrance, she was entrusted by locals to sell gold on their behalf. Her personal reputation led to increased trust, with many people coming to her home to deposit gold. From a small shop, she developed the enterprise into a private company named Vang Bao Tin. Her six children followed in her footsteps, including her eldest son, Mr. Vu Minh Chau.
Mr. Vu Minh Chau (born in 1953) established the Bao Tin Minh Chau brand in 1989. In 1995, the brand was transformed into a limited liability company, Bao Tin Minh Chau JSC, with its headquarters on Tran Nhan Tong Street, Hai Ba Trung District, Hanoi.
After more than 35 years of operation, Bao Tin Minh Chau has established three business locations in Hanoi and over 200 agents nationwide, offering two main product lines: Thang Long Dragon Gold and jewelry.
In terms of financial performance, Vietnam Finance’s statistics indicate that in 2023, Bao Tin Minh Chau’s net revenue reached VND 1,401 billion, an increase of VND 332 billion, equivalent to 31.1%, compared to the previous year. However, the after-tax profit only reached VND 4.5 billion, an increase of VND 400 million, or 9.8%.
In the preceding years, the company’s profits were also recorded at a low level relative to its revenue scale. Specifically, in 2022, the company’s profit was VND 4.1 billion; in 2021, it was VND 2 billion; and in 2020, it was VND 3.1 billion.
The profit margin after tax on equity capital was 4.32% (2023), 3.9% (2022), 1.96% (2021), and 3.1% (2020), respectively.
Cumulatively, in the 2019–2023 period, Bao Tin Minh Chau’s total revenue reached nearly VND 4,500 billion, while its total after-tax profit was only about VND 15 billion.
Shareholder List at Bao Tin Minh Chau
According to the National Business Registration Portal, as of May 2018, the company had a charter capital of VND 100 billion, of which Mr. Vu Minh Chau contributed VND 90.17 billion (equivalent to 90.17%), and the remaining belonged to Mr. Vu Phuong Nam. Mr. Chau served as the Director and legal representative of the company, which had 158 employees according to tax declaration data.
In June 2024, the charter capital was increased to VND 300 billion after Mr. Chau contributed an additional VND 200 billion, raising his ownership to 96.72%. However, in October 2024, the position of Director and legal representative was transferred to Mrs. Pham Lan Anh (born in 1976).
What Does PNJ Have to Say Following the State Bank’s Inspection Conclusion on Gold?
PNJ has proactively requested that the relevant authorities initiate an investigation to clarify the unclear points noted in the report.
“Breaking: Exposé on Saigon Jewelry Company’s Misdeeds”
The State Bank Inspectorate has concluded that Saigon Jewelry Company Limited (SJC) violated regulations related to invoices, accounting documents, and tax, with signs of criminal offenses. At SJC, the buying and selling prices of gold were solely decided and directed by the general director. The State Bank has handed over the company’s violation dossier to the police for further investigation and handling.
“Eximbank Takes Charge: Proactive Remediation of Administrative Violations in Gold Trading Operations”
Eximbank has responded to the State Bank’s conclusions regarding compliance with policies and laws in gold trading activities. The bank has pledged to address the issues with seriousness, openness, and transparency throughout the remediation process.
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The multi-level marketing industry in 2024 witnessed a remarkable performance, boasting a staggering turnover of 16,206 billion VND. The industry engaged nearly 700,000 participants, reflecting its significant reach and impact in the market.
What’s the Deal with SJC’s Monopoly on Gold Bars Over the Past Decade?
In 2024, the volatile gold prices resulted in a significant revenue shift for SJC. The company raked in 32,193 billion VND, marking a notable surge of nearly 4,000 billion VND compared to 2023. This performance is especially noteworthy considering SJC’s previous monopoly on gold bullion, during which it boasted revenues surpassing 72,000 billion VND.
