Gold transactions in HCM City. — Photo vietnamplus.vn

HCM CITY (Biz Hub) — Those working in the gold, jewellery and fine art trades are facing difficulties caused by the Government Decree 24/2012/NĐ-CP on gold trade management.

The May 2013 decree requires gold and jewellery producers to apply for a certificate from the State Bank of Viet Nam before doing business. The certificate regulates the quality, labeling and specificity of gold products.

Nguyen Thi Thanh Huyen, a representative from the municipal Department of Planning and Investment, said the Business Registration Offices of the provincial Department of Planning and Investment have the authority to grant certificates for gold businesses while the central bank's local branches would issue certificates for gold and jewellery production.

However, several firms in the city were not aware of the decree's regulations and faced challenges concerning its implementation.

Ho Truc Tuong from the Ngoc Hai Gold and Jewellery Company, addressed the difficulties the gold and jewellery sector was facing at a conference held in HCM City on Wednesday. He said before the decree took effect, central bank certificates were not compulsory for gold production in household businesses. Household businesses only had to have a minimum capital of VND5 billion (US$222,000) to produce jewellery.

Household gold businesses were confused about the new regulations, he said.

Some experts in the sector, however, said that the central bank certificates were necessary to enable the Government to manage the gold trade and ensure market transparency. However, it was difficult to clarify whether household businesses produced jewellery or not.

Violations found

The Ministry of Science and Technology asked localities to implement check-ups on the quality and labeling of gold and jewellery producers and traders to increase awareness of the trade regulations.

By the end of last month, 43 localities in the country had conducted check-ups on around 1,300 businesses and had fined several firms, collecting a total of over VND2.1 trillion in fees.

Of those firms fined, 59 per cent violated labelling, 15 per cent used unqualified measuring tools, and 2 per cent failed to ensure quantity.

Dinh Thi Ngoc, from the Bao Tran Gold Trading Firm, said it was hard to choose the right machine to test gold content, as there were so many machines on the market.

Ngọc asked management agencies to publicise the regulations and instructions for choosing a standard machine.

Nguyen Van Dung, chairman of the Sai Gon Jewellery Association, said that the development of the city's gold and jewellery firms had not met its potential, due to a shortage of facilitating policies for gold imports.

Without these policies, several firms have had to turn to imported materials with unclear origins. In addition, local gold and jewellery products have faced fierce competition from imported products.

Phan Van Dong, chief inspector for the municipal Department of Science and Technology, said they were working on promoting check-ups of gold and jewellery producers.

He also promised to listen to businesses' difficulties and swiftly submit them to the relevant ministries, Dong said. — VNS