It is estimated that there are over 10 tonnes or hundreds of thousands of taels of non-SJC gold on Vietnam market now, local state-run newspaper Tuoi Tre reported June 19.
The cost to convert these gold into SJC gold would amount to tens of billion dongs and it would be a waste, gold experts said.
The opinion raised after the local state-run newspaper Thanh Nien on June 19 quoted Nguyen Hoang Minh, deputy governor of the State Bank of Vietnam’s Ho Chi Minh branch as saying that the central bank is considering converting non-SJC gold into SJC gold to better manage local bullion market.
There are many other branded gold on circulation now including Phuong Hoang PNJ-DongABank; Sacombank SBJ, Rong Vang Thang Long a product of Bao Tin Minh Chau…
Nguyen Thi Cuc, deputy CEO of PNJ believed that that conversion should not happen as gold traders do not have enough SJC gold to convert, and she concerned about how to convert and who will bear the cost.
Le Tham Duong, head of Business Administration Department of Banking University in Ho Chi Minh said “converting gold brands will be costly and wastes social energy. If the State wants to manage gold market then the State must bear the cost rather than the gold holders and businesses”.
Duong recognised the central bank’s opinion on the matter is gold holders who want to convert must pay fee otherwise they can keep non SJC gold and trade normally, however, gold holders will have to worry about if there will be price squeeze or who will buy these golds.
Tran Thanh Hai, CEO of VGB questioned that who will manage SJC gold production machines and if the management is not properly, it is possible that illegal imported gold will be made into non-SJC gold and then converted into SJC branded gold.