silvervigilante.com / By SV / December 29, 2012
Vietnam continues its gold market clampdown, of which much more is to be expected worldwide. News of regulation has swirled around Vietnam in recent weeks, and just yesterday, the State Bank of Vietnam said that more than 2,000 storefronts will qualify for trading gold bars through the nation under new rules designed to regulate the country’s booming gold market. Those 2,000 storefronts, however, are comprised of only seventeen banks and 14 companies, the only companies to be granted licenses to trade gold bars in 2013.
In order to qualify for a gold bar trading license, under Decree 24/2012/ND-CP, bullion traders must have a minimum charter capital of VND 100 billion (US $4.8 million) and at least two years experience in the industry. The traders will also have to make tax payments of at least VND500 million from gold trading annually for two years in a row, and have branches in no fewer than three centrally-governed provinces and cities.
In order to qualify for gold bar trading, banks are required to have chartered capital of at least 3 trillion, be registered for gold trading, and own trading networks in at least five centrally-governed provinces and cities.
The regulation enables tighter controls in the Vietnamese gold market. Monetary authorities also must slow the draining of the governments gold holdings by limiting the points of sale.