Need to consider the subject of gold bar production
One of the important new points of the Draft is the regulation on conditions for granting gold bar production licenses to enterprises and commercial banks (CMBs). Accordingly, to be licensed to produce gold bars, enterprises must have a charter capital of VND 1,000 billion, while commercial banks must have a minimum capital of VND 50,000 billion.
However, experts say that expanding the licensed subjects for gold bar production needs to be carefully considered to avoid possible risks, and should only license commercial banks to participate in importing gold bars and raw gold.
Talking to Lao Dong reporter, financial expert - Dr. Nguyen Tri Hieu noted that allowing commercial banks to participate in the production of gold bars is a step that needs to be carefully considered.
Shopping malls with their professional functions are the currency sector, while gold is not a currency. The banks themselves do not have professional expertise in gold and silver. If we switch to investing in gold production and business, there will be risks affecting the main operations of the banking system".
Instead, Dr. Hieu said that they should only license commercial banks to participate in importing gold bars and raw gold, taking advantage of financial resources and foreign currency access to supply domestic gold production and trading enterprises.
He also proposed that banks and businesses should not allow exports of gold bars and raw gold because that could increase speculation, affect the market and even Vietnam's exchange rate policy.
According to Mr. Dinh Nho Bang - Chairman of the Vietnam Gold Business Association (VGTA), credit institutions, especially commercial banks, should not be supplemented to participate in the production and trading of gold bars because according to the Law on Credit Institutions dated January 18, 2024, commercial banks do not have the function and task of producing gold. If commercial banks participate in the production and trading of gold bars, banks will be forced to use a large amount of capital (investing in factories, machinery, and training of workers) to invest in areas that are not their main functions or tasks.
granting a full-year gold rate limit to save resources, reduce administrative procedures
This draft also specifically stipulates the mechanism for granting gold import-export licenses and quotas. Accordingly, the State Bank of Vietnam (SBV) will grant annual limits and individual licenses to licensed units, based on the goal of monetary policy management, gold supply and demand, and the actual market situation.
Dr. Hieu agreed with this approach, but in the long run, he said that a limit should be granted for the whole year so that units can be more proactive.
"That also helps the SBV save resources and simplify administrative procedures" - Mr. Hieu said.
Another new point is that the SBV will allocate gold import limits based on charter capital and actual needs, instead of giving a 100% gold import right to a monopoly enterprise as before. This opens up opportunities for many businesses to qualify to participate, thereby contributing to reducing monopoly and healthy the gold market.
The amendment of Decree 24 also aims to prepare for the establishment of a gold trading floor in the future. At that time, gold production and trading activities will become increasingly transparent, closely monitored and closely linked to the international financial market.
Dr. Hieu analyzed: "When Vietnam is moving towards establishing a gold exchange, granting a one-time rate limit for the whole year is reasonable and necessary to create favorable conditions for businesses".
Over the years, Decree 24 has contributed to stabilizing the gold market but has shown inadequacies in the new context. This amendment is expected to overcome those shortcomings, creating a new legal corridor for the gold market to operate in a more modern, fair and transparent direction.
