Along with the goal of continuing to manage gold bar market, the amendment of this decree aims to simplify administrative procedures and reduce business conditions for enterprises.
Accordingly, enterprises which manufacture gold jewelry and fine arts only need to meet the establishment conditions under the provisions of law and have registered the production of gold jewelry and fine art. Other rules about certificates of production and technical facilities condition will be eliminated.
Currently, about 5,800 enterprises have been granted certificates of eligibility for gold jewelry and fine art production by SBV according to the requirements of Decree No.24.
According to the statement from the SBV, in reality, there are few problems with the operation of this type of enterprise so in order to simplify administrative procedures, there is no need to issue certificates of production eligibility.
For gold bar trading activities, the SBV also minimizes the regulations on the procedures for adjusting business licenses in the spirit of reducing unnecessary expenses for enterprises.
The SBV does not regulate the adjustment of gold trading location. In the past, banks and enterprises allowed to trade gold bars may only conduct business at the places enclosed with their licenses. The adjustment of the license’s contents such as changing name, address and adding business location on the license must be approved by the SBV.
In the term of SBV’s monopoly activities, there are two activities added including gold mobilization from organizations, individuals and trading gold on the account.
Before 2012, the gold market fluctuated sharply. The mobilization and lending of gold has caused many factors affecting the liquidity of the banking system and interests of the people as well as causing economic instability.
After five years of implementation, Decree No.24 has pushed back the gold status of the economy and helped stabilize the gold market. The movement of the gold market has no link with the fluctuation of the exchange rate, the foreign exchange market and it does not affect the macroeconomic stability.