HCMC – The State Bank of Vietnam (SBV) is drafting amendments to Decree 24/2012 to end the state’s monopoly on gold bar production, paving the way for eligible businesses and banks to take part.
The move follows directives from Party General Secretary To Lam to end the state monopoly in the gold market.
Dao Xuan Tuan, director of the SBV’s Foreign Exchange Management Department, said the draft aims to eliminate the state monopoly on the production and import-export of gold, allowing eligible businesses and banks to participate.
Despite the shift, the sector will remain under tight control, with the SBV assigning import quotas based on economic conditions and market developments.
Under the tightened oversight, businesses will be required to publicly disclose the specifications, weight, and gold content of their bullion, and will be held accountable for any discrepancies. They must also develop a system to store transaction data and share information with regulatory authorities as required.
The draft requires all gold bar transactions to be conducted with electronic invoices and payments made through bank accounts to ensure transparency and limit cash-based dealings.
In addition to revising regulations on gold bars, the central bank aims to develop the jewelry gold market, with the long-term goal of positioning Vietnam as a regional hub for high-quality gold processing and exports.
Currently, businesses trading in jewelry gold only need to meet eligibility requirements and are not required to obtain a license.
However, importing raw gold materials for production still requires certification from the central bank, which is primarily granted to companies with foreign currency revenues. Other businesses must rely on domestically sourced materials.
Many businesses have proposed allowing the import of raw gold materials for production purposes, not just for export-oriented firms. Currently, there are over 6,000 jewelry gold businesses in Vietnam, most of which are small-scale and face difficulties meeting the requirements for direct import.
To address this, the draft will allow licensed gold bullion producers to import raw gold materials, which can then be supplied to jewelry manufacturers. This mechanism is expected to boost supply while maintaining strict market oversight.
The SBV designated SJC as the national gold bullion brand starting from May 25, 2012, when Government Decree No. 24/2012/ND-CP on the management of gold trading activities came into force. The decree granted the SBV the exclusive right to produce gold bullion. Given that SJC accounted for over 90% of the market share at the time, the central bank decided to continue using the SJC brand as the national standard to ensure quality, credibility, and market stability.
