VGTA suggests amendment to gold draft decree

Vietnam Gold Traders Association (VGTA) sent its suggestions to the State Bank of Vietnam, addressing several infeasible items in the draft decree on gold trading management.

Vietnam Gold Traders Association (VGTA) sent its suggestions to the State Bank of Vietnam, addressing several infeasible items in the draft decree on gold trading management, said Dinh Nho Bang, VGTA’s deputy chairman, emphasizing that unsuitable changes in bullion production and circulation policies will have much effect on the local residents.

The government’s draft decree will naturally make Saigon Jewelry Company Limited (SJC) the only player in the domestic gold bullion production as SJC was the single qualified bullion producer under central bank’s requirements.

Limiting gold bullion production will prompt local residents to hoard gold under the forms of rings, bracelets, necklaces or other gold jewelries, which causes difficulties to gold management activities and place customers at disadvantaged due to uncontrolled gold quality, Bang commented.

Local residents will have much fewer choices, Bang said, adding that there are currently 8 types of gold bullion in the market. The draft decree would trigger market dissatisfaction on the SJC’s monopoly.

There should be a specific roadmap for the implementation of the draft decree so as to provide sufficient time for 10,000 gold traders to adjust their operational models and for consumers to adapt, Bang said.

The VGTA also suggested the government to open a national gold trading floor to create a playground for investors, reduce physical gold hording of local residents, and avoid speculations.

The Gold Exchange Department (GED) should be directly under the central bank, the VGTA initiated, adding that investors can place orders for bid and ask at gold trading firms and commercial banks.

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

Posted by admin on Nov 15 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