Decree confuses VN gold traders

 

The May 2013 decree requires gold and jewellery producers to apply for a certificate from the State Bank of Vietnam before doing business. The certificate regulates the quality, labelling and specificity of gold products.

Nguyen Thi Thanh Huyen, a representative from the municipal Department of Planning and Investment, said the Business Registration Offices of the provincial Department of Planning and Investment have the authority to grant certificates for gold businesses while the central bank’s local branches would issue certificates for gold and jewellery production.

However, several firms in the city were not aware of the decree’s regulations and faced challenges concerning its implementation.

Ho Truc Tuong from the Ngoc Hai Gold and Jewellery Company, addressed the difficulties the gold and jewellery sector was facing at a conference held in Ho Chi Minh City on Wednesday. He said before the decree took effect, central bank certificates were not compulsory for gold production in household businesses. Household businesses only had to have a minimum capital of 5 billion dong (Bt7.6 million) to produce jewellery.

Household gold businesses were confused about the new regulations, he said.

Some experts in the sector, however, said that the central bank certificates were necessary to enable the government to manage the gold trade and ensure market transparency. However, it was difficult to clarify whether household businesses produced jewellery or not.

The Ministry of Science and Technology asked localities to implement check-ups on the quality and labelling of gold and jewellery producers and traders to increase awareness of the trade regulations.