The State Bank of Viet Nam (SBV) has given the green light to credit agencies and gold businesses to trade in gold through overseas accounts, in a bid to bring domestic prices on par with world markets.
According to the regulations, credit agencies and gold businesses need to have an effective internal accounting system, a risk management system for gold trading, and at least one year experience in gold import and export activity.
Besides, gold trading, banks and other financial institutions need to have at least 500kg of gold in deposits, and gold companies should have at least VND100 billion (US$6.3 million) as equity capital to be eligible for trading through overseas accounts.
Meanwhile, financial institutions must maintain a gold status of not over 20% of their equity; the limit is 100% for gold companies.
The businesses, after gaining more international experience, are expected to provide more financial options for gold traders on the domestic market.