Summary
On 30 December 2009 the Government Office released Notice No. 369/TB-VPCP (Notice 369) in which the Prime Minister ordered all the gold-trading floors to be shut by 30 March 2010.
Full Update
Notice 369 conveys the following conclusions of the Prime Minister at a cabinet meeting on 22 December 2009:
Gold is a special commodity and all activities relating to gold are subject to the State management of special regulation because they are to impact Vietnam monetary policies and affect socio-economic stability. To centralise and ensure uniform State management over gold production and trading, the relevant ministries and provincial People's Committees are requested by the Prime Minister to apply the following measures with immediate effect:
- The State Bank of Vietnam ("SBV") is to assume the main responsibility in coordinating with the relevant ministries and bodies to review all current regulations on gold management to submit to the Government for issuance of a decree on gold management with the SBV exercising the function of State management over gold.
- No later than 30 March 2010 the trading of gold under all forms via domestic bank accounts will be banned.
- Retailing of gold jewellery will still be allowed. However, this trading activity must comply with the law.
- The Governor of the SBV is to immediately abolish regulations allowing trading gold using offshore accounts.
- The SBV will actively coordinate with the relevant ministries and provincial People's Committees to take appropriate measures to raise the convertibility of the Vietnamese Dong and to control dollarisation as has been instructed by the PM in his Decision No. 98/2007/QD-TTg dated 4 July 2007.
For inquiries related to this Client Alert, please contact:
Dao Nguyen (dao.nguyen@mayerbrown.com)
Thinh Dan (thinh.dan@mayerbrown.com)
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