Draft Decree on Gold Trading Management to Create Monopoly in Local Gold Market: Bao Tin Minh Chau CEO
Nguyen Minh Chau, CEO of Bao Tin Minh Chau expressed his worry that the government’s draft decree would naturally make SJC the only player in the domestic gold bullion production as SJC was the single qualified bullion producer under central bank’s requirements.
Other gold traders were obviously disqualified Chau went on, saying that the SJC alone represented over 90 percent market shares in gold bullion production.
There was time when 8 currently-licensed gold producers together failed to meet the demand of local residents, let alone 1 gold bullion producer, Chau commented, adding that the required charted capital of VND500 billion was a big amount for local gold trading firms.
Many gold traders will be at loss when the draft decree takes effect, said the PNJ’s representative, explaining that they previously invested intensively in technology to produce bullion gold.
Some gold traders said they would invest more in jewellery gold as the draft decree imposed no regulations for jewellery gold trading, the local online newspaper Dat Viet reported.
The State Bank of Vietnam submitted to the government a draft decree on gold trading management, stipulating that local gold traders will be granted license to produce gold bullion if they meet all requirements of the central bank, including: having more than VND500 billion of charted capital and accounting for at least 25 percent market shares in gold production for 3 consecutive years.