Establishing order in the gold market.
(Baonghean)Businesses authorized to buy and sell gold bars are ready to establish market order, according to a reporter's observations on the first day of implementing Decree 24 on the management of gold trading activities in the province. The new regulation is expected to address existing problems: gold held by individuals, discrepancies between domestic and international gold prices, smuggling, and gold hoarding – trading in gold…
Businesses are ready.
Decree No. 24/2012/ND-CP on the management of gold trading activities was officially signed and promulgated by the Prime Minister, effective from January 10, 2013. In Nghe An province, there are currently 29 locations belonging to 3 businesses and 8 banks authorized to buy and sell gold bars. On the morning of January 10, most of the banks and businesses contacted by reporters indicated they were ready to participate.
Sacombank bank staff provide advice to customers.
With four authorized gold trading points (Nghe An branch, Dien Chau transaction office, Hung Binh, and Quan Banh), and possessing experience in gold trading, Sacombank's Nghe An branch has prepared quite thoroughly, from obtaining gold trading licenses and providing additional training for staff to displaying business registration certificates at transaction points and conducting publicity campaigns. In an interview, Mr. Ta Quang Viet, Director of Sacombank's Nghe An branch, stated that in 2012, total revenue from foreign exchange trading, including gold, accounted for approximately 30% of the unit's sales. Clearly, the new regulations tightening gold bullion trading mean that businesses have better opportunities and hope for better income from gold trading in 2013.
Similarly, at Eximbank's Vinh branch, leveraging its strengths, the branch's gold trading volume reached 26,000 taels in 2012. The branch manager stated: Decree 24 is a correct policy of the State, contributing to limiting and preventing the "goldization" of the economy, making the gold market more transparent in terms of price, and reducing the prevalence of counterfeit goods. Implementing this decree effectively will stabilize the gold market, reassure investors and the public, and reduce social costs.
Violations still exist.
Licensed banks and businesses are ready, but some gold trading establishments in the area are not strictly complying. On the morning of January 10th, at Quang An and Tat Nam gold shops on Tue Tinh Street (Hung Dung market area), the owners all stated that they used to buy gold bars (but not sell them), but in recent months, in preparation for the ban on trading gold bars at unlicensed establishments, they have stopped buying gold bars.
However, unlike the licensed businesses, the remaining ones argued that "State policies are constantly changing and unstable for citizens and businesses." In the early afternoon of the same day, violations continued at several gold shops in the Vinh market area. At the KTH gold shop, despite not having a license to trade in gold bars, the display case still showed SJC branded gold bars; the price list displayed the SJC gold bar price at 4,650,000 VND. At some other gold shops like Phu Nguyen and Tuan Tu, the gold bars were no longer being sold, and the price lists had been removed. However, when we inquired about buying gold bars, the shop owners said they "would help us buy them if needed." A common point among all the gold shops was advising customers to buy gold rings, claiming that "gold bars are exclusive and expensive." The owner of Phu Nguyen gold shop offered: "Buy gold rings, 9999 quality, if you buy a lot, I'll give you a discount." When asked about the price, the woman said, "The listed price is 4.4 million dong, but if you buy in bulk, you get a discount of 20,000 dong per gram."
According to our observations, on the first day of the ban on trading gold bars at unlicensed shops, gold shops had even narrowed their business opportunities and sought alternative options. The prices of gold jewelry and gold rings were offered more "flexibly" by shop owners. Not only Phu Nguyen, but also the neighboring Tuan Tu gold shop encouraged customers to buy gold rings, with prices potentially fluctuating by 40,000 VND per tael. On the last day of the year, gold trading was quite active, and gold rings remained in high demand. One customer at the Phu Nguyen shop bought five taels of gold rings (5 taels each) at once.
It is known that although the State Bank of Vietnam's Nghe An branch has advised on the regulations for coordinating the management of gold trading in the area, and has been seeking opinions from relevant departments and agencies for quite some time, the province has not yet officially issued them. Therefore, in order to effectively implement Decree 24, relevant agencies need to get involved soon.
Thu Huyen
