Tuesday, January 15th 02:53 PM IST

Vietnam Bullion trade in disarray since new regulation

# Vietnam gold  # SBV  # SJC  # gold monopoly  

Analysts questioned this claims and said gold bar holders are having trouble finding a proper place to sell their precious metal.

HANOI(BullionStreet): Gold bullion trade in Vietnam continued to get affected as majority businesses were kicked out of gold trading market following the new regulation.

Analysts said more than eighty percent gold shops were banned from gold bullion transactions after failed to meet financial requirements necessary to maintain business after the implementation of the January 10 regulation.

However, country's central bank, State Bank of Vietnam claims that there are 2,500 facilities available countrywide, licensed to trade gold bullion, are enough to serve public need.

Analysts questioned this claims and said gold bar holders are having trouble finding a proper place to sell their precious metal.

They added that after the new regulation, gold bullion holders are only allowed to work with the branches of 22 banks, and 16 businesses, while most of their familiar gold shops have been banned from gold bullion transactions.

However, many banks have yet to offer the gold bullion trading service, despite obtaining the licenses, they added.

Gold holders thus have had to visit numerous branches, taking up their whole day, and were still unable to sell the precious metal.

Many others chose to sell to unlicensed gold shops out of urgent need for money and paid around VND200,000 a tael lower than the market price.

Meanwhile, the gap between domestic and global prices narrowed to only VND2.6 million a tael. The highest gap recorded so far was nearly VND5 million a tael.

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