The State Bank of Vietnam (SBV) has publicised a draft circular that would adjust existing regulations managing gold trading, Thoi bao Kinh te Viet Nam (Vietnam Economic Times) newspaper reported.

Illustrative image (Photo: VNA) 

The draft circular would amend Circular 16/2012/TT-NHNN dated May 25, 2012 to instruct the implementation of Decree 24/2012/ND-CP issued by the Government.

 Under the draft circular, the SBV would cut administrative works in spot gold trading management and remove conditions on changing business licences.

 For example, when a company wants to change the information on its licence, the firm would be able to send a filing to the SBV and an adjustment will be approved within 15 working days.

 In addition, some reporting mechanisms between the SBV, its local offices and businesses would be eliminated to reduce the workload and expense for both businesses and Government agencies.

 According to the SBV, the draft circular is in line with the Government’s efforts to reform administrative process, improve the business and investment environment and support the development of the business community.

 Both the previous circular and the decree have helped re-arrange the domestic gold market and made it easier for the Government to control the market.

“At the moment, the domestic gold market has seen a decrease in trading liquidity. Therefore, it is necessary to amend regulations on gold trading business licensing,” Thoi bao Kinh te Viet Nam cited the SBV as saying.

 The SBV is also exploring a new decree to amend Decree 24/2012/ND-CP.

 The SBV has finished collecting feedback from ministries, Government agencies, businesses and specialists on the decree and submitted the draft to the Prime Minister for approval.

 Gold prices posted by Vietnamese jewellery and gold companies stood at 42.2 million VND per tael or 31.65 million VND (1,360 USD) per ounce. Gold prices on August 12 were at least 41.7 million VND per tael.

 On global markets, benchmark gold on the Commodities Exchange traded at 1,535 USD an ounce on August 13, up 1.17 percent from August 12.

 The uptrend was attributed to investors’ needs to hedge risks on worries about trade tensions, the global economic slowdown and rate cuts across central banks.

 Gold prices last week jumped nearly 4 percent in total, bringing their rally this year to 17 percent.