Restrictions on Bullion-Related Businesses
By P. Thao and P. Trung
Saigon Giai Phong
(Liberation)
Ho Chi Minh City, Vietnam
Thursday, April 5, 2012
http://www.saigon-gpdaily.com.vn/Law/2012/4/100611/
As per a decree issued by the Prime Minister's
office on April 3, gold has been banned as a medium for exchange, along with
seven bullion-related activities that will take effect from May 25.
The decree prohibits use of gold as a medium of
exchange; manufacturing gold jewellery without a licence from the central bank; trading gold without a licence; and conducting any other gold-related businesses
without the approval of the prime minister and the central bank.
In addition, licensed gold enterprises must satisfy
requirements such as having registered capital of 100 billion Vietnamese
dong; having operated in gold trading for two years; paying tax above VND500
million; and having at least a branch in three central provinces and cities.
As per the decree, licensed banks and credit institutions must have a
registered capital of over VND3 trillion and branches in five provinces and cities.
Moreover, gold producers must be registered under
the country's law to make gold and have good working facilities.
Furthermore, the State Bank of Vietnam ordered five
banks including Asia Commercial Bank, Dong A Bank, Vietnam Export Import
Bank, Saigon Thuong Tin Commercial Joint Stock
Bank, Vietnam Technological and Commercial Joint-stock Bank, and Saigon Jewellery Co. to send detailed reports of their network
for selling and buying bullion in the country, along with names and address
of branches.
For setting up a network in the country and for
meeting the demands of domestic gold consumers, five banks and jewellery companies have been asked to expand operations
in every district in the country.
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