Does choosing the SJC brand to produce gold bars create a corporate monopoly?

Before 2012, the management mechanism for gold business activities was implemented according to Decree 174/1999/ND-CP dated December 9, 1999 of the Government. However, from 2008 to 2012, due to the impact of the global economic and financial crisis, Vietnam’s economy was also greatly affected. During this period, economic growth decreased, inflation increased and the need to hold gold in the economy increased. With the sharp increase in world gold prices, the management mechanism for gold business activities during this period has revealed inadequacies and limitations.

Specifically, the regulations are quite open, do not clearly separate 03 markets (gold bars, raw gold and gold jewelry, fine arts, there are no regulations on management and control of gold buying and selling business activities). Gold pieces and bars are considered normal goods and regulations on state management functions for gold business activities are inconsistent, scattered and unclear, thus creating many loopholes in management. physical.

During this period, every time gold prices fluctuate, a “gold fever” appears in the market due to people’s psychology being disturbed. The difference between domestic and world gold prices often puts pressure on the official USD exchange rate. /VND, adversely affecting the foreign exchange market and the State’s foreign exchange reserves, further increasing the “goldization” situation, causing macroeconomic instability.

6 BASIC SOLUTIONS TO STABILIZE THE GOLD MARKET

Faced with the inadequacies of the gold market in the period 2008-2012, the Government issued Decree 24/2012/ND-CP (Decree 24) with 2 main objectives to: (i) Organize and rearrange a fundamentals of the gold market, especially the gold bar market; (ii) limit the impact of gold price fluctuations on exchange rates, inflation and macroeconomic stability; repel the “goldenization” of the economy.

To achieve the above goals, Decree 24 has proposed 6 basic solutions.

The first, The legal gold ownership rights of organizations and individuals are recognized and protected according to the provisions of law.

Monday, The State through the State Bank has the exclusive right to produce gold bars. Only the State Bank is allowed to produce gold bars. Since May 25, 2012, no organization or individual is allowed the right to produce gold bars. Gold bar production.

Tuesday, Organizations and individuals can only buy and sell gold bars at qualified credit institutions and businesses licensed by the State Bank to trade gold bars.

Before Decree 24/2012/ND-CP on gold market management was issued, the business of buying and selling gold bars took place freely at nearly 12,000 businesses, causing difficulties for management and increasing the risk of “goldenization” of the economy.

(State bank)

Wednesday, Organize the export of raw gold and import of raw gold to produce gold bars.

Thursday, strictly prohibit the use of gold as a means of payment.

Friday, Fine art gold jewelry production is a conditional business activity that must be granted a Certificate.

At the same time, the State Bank has issued synchronous legal documents to effectively manage the gold market according to the new legal framework, the core of which is Decree 24, including: (1) documents regulations on terminating capital mobilization and lending activities in gold; (2) documents regulating the purchase and sale of gold bars on the market of the State Bank (3) documents regulating gold bar production activities and (4) documents regulating administrative sanctions in monetary and banking sectors, including gold trading activities.

WHY CHOOSE SJC TO PRODUCE GOLD BARS?

Since May 25, 2012 (the effective date of Decree 24), the State has the exclusive right to organize gold bar production; No organization or individual has the right to produce gold bars. This is an important measure to strictly control gold bar production activities, the amount of gold bar supply on the market and prevent the production of gold bars from smuggled raw gold.

Pursuant to Decree 24, the State Bank has organized the production of gold bars by hiring Saigon Jewelry Company Limited (SJC Company) under the People’s Committee of Ho Chi Minh City to participate. SJC gold bars for the State Bank.

The selection of the SJC gold bar brand to produce gold by the State Bank does not create a corporate monopoly because SJC Company is no longer allowed to directly produce gold bars but only does the business of buying and selling gold bars, producing and selling gold bars. Trading in gold jewelry and fine arts like other licensed businesses.

State bank

The State Bank explained that before Decree 24 was issued, there were 8 different brands of gold bars in circulation on the market. However, SJC gold bars account for over 90% of the amount of gold bars in circulation. At the same time, during this period, businesses and credit institutions licensed to import raw gold to produce gold bars hired SJC Company to reprocess them into SJC gold bars. Thus, the SJC brand is a reputable brand, accepted by the market and accounts for the largest proportion of transactions.

“To have its own brand of gold bars, the State must invest a lot of capital to build its brand and organize the production of its own brand of gold bars. The fact that the State Bank has a gold bar brand can cause great costs (financial and time) for people when switching from other gold bar brands to the State Bank brand. In addition, choosing a gold bar brand other than SJC also leads to huge conversion costs for people,” the State Bank explained and said in reality during the implementation period, the gold bar processing capacity SJC’s has so far still met the market’s demand for gold bars.

The State Bank’s use of the SJC gold bar brand to produce the State Bank’s gold bars is carried out on the basis of the consent of the People’s Committee of Ho Chi Minh City (the agency representing the State owner at the State Bank). SJC Company) and SJC Company. The parties have agreed that the State Bank can use the SJC gold bar brand for free and according to the Law on Product Quality, SJC Company must comply with quality assurance conditions for SJC gold bar products and Be responsible before the law and consumers for the quality of products they produce.

Therefore, the State Bank affirms that the State Bank’s choice of the SJC gold bar brand to produce gold does not create a corporate monopoly because SJC Company is no longer allowed to directly produce gold bars. Since Decree 24 took effect, SJC Company’s main function is only to buy and sell gold bars, produce and trade gold jewelry and fine arts like other licensed businesses. The choice of the SJC gold bar brand to produce gold bars is based on practical, legal grounds and for the benefit of society and the people.

Trả lời

Email của bạn sẽ không được hiển thị công khai. Các trường bắt buộc được đánh dấu *