Unceratinties shadow Vietnam gold sector

Southeast Asia’s vibrant economy, Vietnam’s gold sector remained in a zombie state after country’s central bank introduces new restrictions on gold trading.

According to country’s largest gold trader, SJC, gold sales are falling since the new rule . Analysts said SJC will become the only eligible producer because it holds more than 90 percent of the market.

SJC said central bank’s plan to use it as a national brand for gold products is a welcome decision and it will work with the central bank to ensure fair exchanges for gold bars produced by other companies.

Meanwhile, Vietnam Gold Traders Association, said authorities need to take into consideration the public’s habit of keeping gold and give them six months to a year to get used to the new regulations.

All measures taken need to protect the right of having gold holdings, it said Under a draft decree introduced by the State Bank of Vietnam late last month, gold bar traders will be required to have a minimum capital of VND100 billion (US$4.76 million) and operate in at least three major cities.

For gold bar producers, the requirements are a capital of at least VND500 billion and a minimum market share of 25 percent.

However the draft decree is not official yet and everything will be clearer when the final version is introduced, analysts hopes.

Vietnam has not stopped legal circulation of other gold bar products. - bullionstreet.com

Tags: Vietnam gold, Vietnam gold market, Vietnam gold prices

Posted by admin on Nov 25 2011. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry