The Golden Opportunity: Unveiling the Authorized Banks and Enterprises for Gold Bar Production Post-Monopoly

The State Bank of Vietnam has announced a draft amendment to Decree 24 on managing gold trading activities, aiming to abolish the monopoly on gold bar production and gold material imports. Instead, the governing body will control the market through annual quota allocation and import licenses for gold bars and raw gold issued to qualified credit institutions and enterprises.

According to the proposed amendments to Decree 24, enterprises seeking a gold bar production license must have a minimum charter capital of VND 1,000 billion, while banks must have a minimum charter capital of VND 50,000 billion. Additionally, these entities must be on the list of entities licensed by the State Bank of Vietnam to trade in precious metals, and they must not have any violations or have rectified any past violations. They should also have internal regulations governing gold bar production.

Currently, 38 enterprises and banks are licensed to trade in gold bars. However, considering the current charter capital scale, only a few enterprises have a charter capital of VND 1,000 billion or more, such as PNJ, DOJI, and SJC.

Regarding banks, Vietcombank, VPBank, Techcombank, BIDV, MB, VietinBank, and Agribank fall into the group with a charter capital of over VND 50,000 billion.

The draft also outlines the responsibilities of credit institutions and enterprises engaged in gold bar production, including:

They are only permitted to produce gold bars that meet the specified standards.

They must announce the applicable standards, weight, and fineness of their products as per legal requirements and be accountable for ensuring that the weight and fineness of their produced goods align with the declared standards.

They bear full responsibility for the gold bars they manufacture and provide product warranties to customers as mandated by law.

They are tasked with constructing an information system that ensures the comprehensive and accurate storage of data pertaining to gold bar production. This system should facilitate data provision to authorized entities as stipulated by relevant laws.

They must adhere to the provisions outlined in this Decree and other pertinent legal documents.

The draft also delineates the responsibilities of credit institutions and enterprises granted gold export and import licenses. Specifically:

Enterprises and credit institutions are only permitted to import gold bars and raw gold from manufacturers certified by the London Bullion Market Association (LBMA)

They must announce the applicable standards, weight, and fineness of imported gold bars and raw gold. They are legally accountable for ensuring that the weight and fineness of the imported products align with the declared standards.

They are responsible for constructing and reporting to the State Bank of Vietnam their internal regulations regarding gold export and import, as well as safety measures pertaining to these activities.

They must establish internal regulations for the sale of raw gold, ensuring transparency and disclosing relevant information, including the rights and obligations of customers.

Moreover, enterprises and credit institutions can only utilize imported gold bars and raw gold for the following purposes: gold bar production, gold jewelry and artwork production, sales to enterprises or credit institutions licensed for gold bar production, and sales to enterprises certified for gold jewelry and artwork production.