Vietnam Central Bank Proposed to Allow Temporary Bullion Export & Solid Gold Reimport

The Ho Chi Minh City People’s Committee has recently proposed the State Bank of Vietnam (SBV) to allow temporary bullion export and solid gold reimport as suggested by domestic gold trading units, the local online newspaper Saigon Times reported.

The approach will help to speed up the quality assessment of non-SJC gold, ensure sufficient gold supply to the market, contribute to cutting the local gold premium and reduce damage to credit institutions and the local people, the HCMC authority said in a statement.

Temporary bullion export and solid gold reimport involve activities in which firms export their bullion and reimport the converted solid gold. As such, the quality of gold is guaranteed and the gold will then be brought to the SJC for re-swaging without the need to verify the quality.

However, SBV Deputy Governor Le Minh Hung said that the activity is not easy to implement due to regulatory restrain specifying that the SBV is the only gold exporter and importer in the market.

The central bank is considering various options, Hung said, adding that the monetary authority favors allowing firms to turn their bullion into solid gold on their own under the quality control of the SJC. The SJC can then re-swage gold into bullion, Hung said.

In addition, the People's Committee proposed the central bank to grant “open” gold re-swaging license to the SJC (with unspecified volume and longer reprocessing duration) to facilitate the reproduction of SJC bullion from deformed and disqualified gold to meet market demand.

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