Maintaining Stable and Healthy Gold Market

In a brief span, market regulatory bodies across various provinces and municipalities in Vietnam have concurrently conducted inspections on numerous gold traders, revealing a significant number of infractions. A representative from the Vietnam Directorate of Market Surveillance (DMS) said that the DMS will continue its investigation into the gold trade until the end of 2024, with the aim of ensuring the stability of the gold market.

The heathy gold market contributes significantly to the growth of gold enterprises upholding legal compliance

Simultaneously probing, temporarily detaining unknown origins

On April 19, market watchdogs under Ho Chi Minh City Market Surveillance Department conducted a surprise inspection into some private gold traders, unearthing a large amount of yellow metal jewelry for sale without official invoices, documents, certificates of origin and with signs of brand counterfeiting. The value of seized items was nearly VND500 million.

Market watchdogs coordinated with ward authorities and police to establish inspection teams and simultaneously launch sudden probes into nine gold business locations in districts 5, 6 and 8. Common violations included trading in gold of unknown origin and trading in gold carrying major trademarks that are protected in Vietnam. The violation value was VND216,692,650. Market management teams temporarily confiscated violated gold for further verification and treatment by law.

Also, during this time, Market Management Team 11 coordinated with the Thiec Market Management Board (District 11) to inform, disseminate and guide legal knowledge for small gold traders. Gold traders made commitments to not transporting, storing or trading in counterfeit gold, gold of unknown origin and gold that infringes intellectual property rights.

In An Giang province, market watchdogs also conducted an inspection after more than two months of verification. The E-commerce Working Group under the Vietnam Directorate of Market Surveillance (the Ministry of Industry and Trade) collaborated with An Giang Market Surveillance Department to conduct a sudden probe into Kim Huong Dinh Jewelry Shop, the largest gold shop in Long Xuyen City, An Giang Province, and discovered many jewelries with signs of counterfeiting famous brands like Chanel and Cartier.

The Facebook account with the blue badge “Kim Huong Dinh Gold Shop” has 956,000 likes and 1.3 million followers. This Facebook account regularly livestreams selling gold and platinum metal jewelry products.

At the time of inspection, this gold shop had tens of thousands of gold and white gold products for sale. Its jewelry products such as necklaces, earrings, bracelets and rings seemed to be forged with famous brands like Chanel, Cartier and Bulgari. The account was found selling jewelry with signs of counterfeiting popular luxury brands.

According to inspectors, the gold shop is owned by Kim Huong Dinh Gold, Silver and Gemstone Co., Ltd, led by Ms. Huynh Thi Thanh Tuyen (39 years old). This company with a registered capital of VND200 billion was granted the Business Registration Certificate by the Department of Planning and Investment of An Giang province.

When working with the inspectorate, the representative of Kim Huong Dinh Co., Ltd. confirmed that the company used the Facebook account “Kim Huong Dinh Gold Shop” to livestream selling gold, silver and metal jewelries. According to DMS, this is the first probe into gold jewelry sold via e-commerce form.

In this case, the E-commerce Working Group under DMS is comparing invoices and documents in connection with items provided by the company to determine the origin and legality of gold jewelry products.

Strong gold market helps develop genuine gold businesses

According to DMS, the above scrutiny into private gold traders is compliant with Document 58/TCQLTT-CNV dated March 21, 2024 of DMS on implementation of Official Dispatch 23/CD-TTg of the Prime Minister.

Following inspections across various localities, numerous gold business loopholes were identified. To regulate the gold market, authorities are collaborating to implement effective inspection plans in 2024, strengthen local management, and coordinate with district police and SBV branches for stringent monitoring of gold traders.

Thereby, market authorities will promptly detect, inspect and strictly handle violations under their jurisdiction, especially against acts of smuggling, goods of unknown origin, counterfeit goods and brand counterfeiting, in a bid to support reputable gold businesses that contribute to social development.

Provincial/municipal market authorities will step up probes into gold business. The fact that many gold shops are closed in response to ongoing inspections is obstructing market watchdogs. The specialized inspection into gold products by market authorities is being radically enhanced. The scope of inspection covers business registration, business conditions, regulatory compliance with product labeling and pricing.

Then, authorities will check goods and relevant invoices and documents on origin and ensure regulatory compliance with intellectual property and e-commerce laws.

A market authority said that many gold, silver and jewelry stores are closed. If they are open, they have cleaned out their products or display a limited number of jewelry items that look similar to famous brands like Chanel and LV. Gold shops often commit mistakes in labeling and origin.

By Hien Quyen, Vietnam Business Forum