What conditions must be met to trade in gold bars?

In Resolution 44/NQ-CP dated April 5, 2024, the Government's online conference with localities, the Government requested to urgently review and develop a draft decree amending, supplementing or replacing Decree 24/2012/ND-CP on gold market management to develop a stable, healthy, transparent, effective and sustainable gold market, avoiding the situation of goldification of the economy.

Currently, the authorities are considering amending Decree 24/2012/ND-CP.

According to current regulations (Decree 24/2012/ND-CP), the management of gold bar buying and selling business activities is regulated as follows: Gold bar buying and selling activities of organizations and individuals can only be carried out at credit institutions and enterprises that are granted a Business License to buy and sell gold bars by the State Bank.

The Decree also stipulates the conditions for granting a Business License to buy and sell gold bars.

Accordingly, enterprises will be considered by the State Bank for granting a Business License to buy and sell gold bars when they meet the following conditions:

Is an enterprise established and operating in accordance with the provisions of law.

Has charter capital of 100 billion VND or more.

Have experience in gold trading for 2 years or more.

Have paid taxes on gold trading activities of 500 million VND/year or more in the last 2 consecutive years (with confirmation from the tax authority).

Has a network of branches and sales locations in Vietnam from 3 provinces and centrally-run cities or more.

Credit institutions are considered by the State Bank for granting a Business License to buy and sell gold bars when they meet the following conditions:

Has charter capital of 3,000 billion VND or more.

Registered gold business.

Has a branch network in Vietnam from 5 provinces and centrally-run cities or more.

The State Bank prescribes procedures and documents for granting Business Licenses for buying and selling gold bars to enterprises and credit institutions.

This Decree also stipulates the responsibilities of enterprises and credit institutions engaged in the business of buying and selling gold bars.

Enterprises and credit institutions operating in the business of buying and selling gold bars are responsible for:

Only allowed to buy and sell specified types of gold bars.

It is not allowed to conduct gold bullion business through authorized dealers.

Comply with legal regulations on accounting, preparation and use of invoices and documents.

Publicly post at the transaction location the buying and selling prices of gold bars.

Have measures and equipment to ensure safety in business operations.

Comply with the provisions of this Decree and other relevant legal provisions.

At 10:00 a.m. tomorrow, April 22, 2024 (Monday), the State Bank will officially begin organizing the first gold auction after 11 years of absence.

The auction venue takes place at the State Foreign Exchange Reserve Management Department - State Bank at 25 Ly Thuong Kiet (Hoan Kiem, Hanoi).

According to the State Bank, the bidding form is price bidding.

The total expected volume of gold bars at the beginning of the transaction is 16,800 taels of gold. The volume of gold bars of a transaction lot is 100 taels.

According to regulations, the type of gold bars sold is SJC gold bars produced by the State Bank.

Bidding members will deposit at a rate of 10%. The reference price for calculating the deposit is 81.80 million VND/tael (this price is only calculated for deposit).

The minimum bidding volume a member is allowed to bid is 14 lots, equivalent to 14,000 taels of gold.

The maximum bidding volume a member is allowed to bid is 20 lots, equivalent to 20,000 taels of gold.

Bid price step is 10,000 VND/tael

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