Business
 
No more golden days
Tuoi Tre, Saigon Times Daily

The government has put an end to gold trading on accounts and at gold exchange centers nationwide from March 30, 2010.

The government said in its website Wednesday that Prime Minister Nguyen Tan Dung had asked the State Bank of Vietnam (SBV) to abolish a decision issued in 2006 that allowed gold trading on accounts in foreign countries, which means local institutions can no longer trade gold on foreign accounts.

The SBV is ordered to review all regulations on gold management and submit a new draft decree on gold trading in which the central bank will be mandated to supervise the gold.

The Ministry of Industry and Trade is assigned to be the monitoring agency for gold as it is seen as a normal commodity, according to the government decision.

Provincial authorities and SBV local branches are asked to provide detailed guidelines for the business of gold jewelry.

Vietnam has an estimated 20 active gold exchange centers, which are run by banks, individuals and institutions, or through a partnership between a bank and one or more institutions.

Gold trading at a gold exchange center amounts to thousands of billions of dong a day.

Gold exchange operators and experts earlier objected to the ban on gold exchanges because demands for gold trading on accounts are high.

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