Gold Trading Firms Object to Draft Law on Gold Exchange
Many gold trading companies have complained about a draft circular of the State Bank of Vietnam (SBV), tentatively specifying that only commercial banks will be entitled to provide gold trading services in the country.
Gold investment and trading enterprises including Vietnam Gold Business, Wall Street, Asia Gold, Toan Cau and 24K are all worried about business when the draft becomes a legal document as they are not run by commercial banks.
A general director of a newly-established gold enterprises said that the regulation will be very difficult for gold trading firms. The only choice is asking permission to merge with banks.
“Otherwise, we have to steer our business to other industries after spending so much on the gold exchange system,” he said.
Most gold traders suggested that gold exchange centers be managed by an independent organization and banks should only take charge of payment.
The State Bank of Vietnam, the country’s central bank, cannot close down the gold trading enterprises as the firms have been licensed by the department of Planning and Investment or Industry and Trade.
However, an official of the SBV said the central bank did not encourage people to trade gold via accounts due to risks. Such transactions are like a casino and investors will have to bear all consequence, the official explained why such a draft was put forth.
The Finance Ministry, the central bank, the Government Office and the Ministry of Industry and Trade are jointly preparing the draft circular to submit to the Government. The circular is expected to take effect in the fourth quarter of this year if it is approved.
At present, Vietnam has nearly 20 gold trading centers with 20,000 active accounts. (Saigon Economic Times)
Vietnamese
