Jewelry businesses, manufacturers thirst for capital

At a meeting to review the implementation of the governmental circulars in managing jewelry organized by the Ho Chi Minh City Jewelry Association on September 21, gold enterprises and manufacturers complained a shortage of capital for production.

Enterprises said that four years after implementation of the governmental decision No.24/2012, they hardly imported material for making jewelry while they could not ask for loans.

For instance, in the circular No.3 guiding to carry out the State Bank of Vietnam’s decision 24/2012, it is said that to ensure safety for credit institutions, jewelry enterprises only ask for fund when they receive approval from the governor of State Bank.

Moreover, enterprises hardly meet the regulation to ask for a bank loan.

By statistic of the Ho Chi Minh City Jewelry Association, tight provision of capital has brought over 70 percent of precious metal businesses to a virtual standstill. Worse, gold enterprises are facing difficulties in material for production; as a result, they had to collect from many sources without origin in the market.

A representative from the State Bank of Vietnam (SBV) in Ho Chi Minh City said that enterprises should follow available regulations on importing gold. SBV is studying about loan capital to create favorite condition to businesses which are thirst for capital.

So far, SBV in HCMC has granted license to 415 enterprises which satisfy the regulation of producing jewelry in the city.

By Nhung Nguyen – translated by Anh Quan

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