Dinar Daily
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Latest topics
» Deadly stampede could affect Iraq’s World Cup hopes 1/19/23
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeYesterday at 6:02 am by Ditartyn

» Dave Schmidt - Zim Notes for Purchase (NOT PHYSICAL NOTES)
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeSat Mar 23, 2024 9:25 am by swizzlestick

» ZIGPLACE
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Mar 20, 2024 6:29 am by Zig

» CBD Vape Cartridges
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeThu Mar 07, 2024 2:10 pm by Arendac

» Classic Tony is back
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeTue Mar 05, 2024 2:53 pm by Mission1st

» THE MUSINGS OF A MADMAN
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Mar 04, 2024 11:40 am by Arendac

»  Minister of Transport: We do not have authority over any airport in Iraq
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Mar 04, 2024 11:40 am by Verina

» Did Okie Die?
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Mar 04, 2024 11:34 am by Arendac

» Hello all, I’m new
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Jan 31, 2024 8:46 pm by Jonny_5

» The Renfrows: Prophets for Profits, Happy Anniversary!
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Jan 31, 2024 6:46 pm by Mission1st

» What Happens when Cancer is treated with Cannabis? VIDEO
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Jan 31, 2024 8:58 am by MadisonParrish

» An Awesome talk between Tucker and Russell Brand
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Jan 31, 2024 12:16 am by kenlej

» Trafficking in children
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Jan 29, 2024 7:43 pm by kenlej

» The second American Revolution has begun, God Bless Texas
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Jan 29, 2024 6:13 pm by kenlej

» The Global Currency Reset Evolution Event Will Begin With Gold, Zimbabwe ZWR Old Bank Notes
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeSun Jan 28, 2024 3:28 pm by Mission1st

» Tucker talking Canada
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Jan 24, 2024 6:50 pm by kenlej

» Almost to the end The goodguys are winning
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Jan 22, 2024 9:03 pm by kenlej

» Dinar Daily Facebook Page
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeMon Jan 22, 2024 3:34 pm by Ponee

» The Fundamentals of Finance and Pimpy Live
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeThu Jan 18, 2024 7:17 am by Dinarhater

» Why Won't the Iraqi Dinar Scam Die?
VIETNAM Gold traders slump prior to trading decree I_icon_minitimeWed Jan 17, 2024 5:19 pm by RamblerNash

VIETNAM Gold traders slump prior to trading decree

Go down

VIETNAM Gold traders slump prior to trading decree Empty VIETNAM Gold traders slump prior to trading decree

Post by 1alaskan Wed May 16, 2012 4:45 pm

Gold traders slump prior to trading decree

VietFinanceNews.com - Private gold traders and large firms have witnessed their businesses going down the tubes due to the new decree on gold trading control starting from May 25.

Private gold traders suffering tough times

According to Decree 24/2012/ND-CP signed by the Prime Minister, just a few enterprises will be eligible for gold bar trading with business certificates granted by the central bank.

Gold firms are required to be established and operate in line with the prevailing laws with chartered capital of at least VND100 billion. They are requested to have at least two years’ gold trading experience, tax payments of VND500 million annually in the last two years, and branch networks in at least three centrally-governed cities and provinces.

As such, there are only about 10-20 local entities satisfying the five stringent conditions, meaning small gold shops and private firms have to give up trading gold bars as a result.

Duc, the owner of a large gold shop in Ben Thanh Market in HCMC, said he would move his shop to Tan Dinh Market and lease out the present trading venue. He attributed his relocation to the fact that gold trading is no longer profitable like before.

“Since late last year my business has suffered as gold bar selling and foreign currency exchanges were the two main earners. Jewelry trading alone generates little profit,” Duc stated.

Duc used to manage five shops in Binh Tan District with trading volume reaching hundreds of taels per day but now he only has one store left with daily trading volume staying at less than ten taels.

Duc said his business was stuck in a blind alley due to the strictness of State management-related regulations in the context of the present economic woes. This year Duc’s store has shifted to selling jewelry with gold bar sales contributing a mere 10% to the total.

Tran Quy Hai, another veteran gold bar trader in Binh Thanh District, said the draft version of the decree had even slowed local demand, thus hitting his business activities.

Regardless of gold price falls, gold bar demands from gold shops have narrowed to one-tenth of levels in previous years, said Nguyen Cong Tuong, deputy head of Saigon Jewelry Company (SJC)’s sales department.

Big companies in the same boat

After the issuance of Decree 24/2012/ND-CP on April 4, Nguyen Quang Huy, head of the central bank’s Foreign Exchange Department, reassured the public there would be no discrimination between accredited SJC gold bars and other legal brands.

Despite such reassurance, local demand for gold bars not bearing SJC brands have sharply tumbled.

Phu Nhuan Jewelry JSC (PNJ) has still sold PNJ-ADB gold bars to buyers but the transactions are set with prices much lower than the selling price of SJC gold bars, said Nguyen Thi Cuc, deputy general director of PNJ.

Trading volumes at PNJ have been very small in recent times, with the majority, at 70%, going to SJC gold bars, Cuc noted.

Meanwhile, Sacombank Jewelry Company (SBJ) this year has mainly bought gold bars bearing its brand rather than selling out the gold. Now most consumers are tending to buy SJC gold bars only, according to general director Nguyen Ngoc Que Chi of SBJ.

The same problems are also affecting Agribank Jewelry Co., as cited by chairman Nguyen Thanh Truc, who had already submitted a petition to the central bank to seek solutions to save industry insiders.

The company has primarily bought its AAA gold bars because of a weak appetite from local buyers. At certain times it has no choice but to accept a loss of up to VND700,000 a tael to exchange its own gold for SJC in return.

http://www.vietfinancenews.com/2012/05/gold-traders-slump-prior-to-trading.html

*****************
Being defeated is often a temporary condition. Giving up is what makes it permanent.
Marilyn Vos Savant


Yesterday would have been better, but today is a good day

Remember as always, JMHO
Rantings from just north of sixty

1alaskan
Elite Member
Elite Member

Posts : 4668
Join date : 2011-06-21
Age : 41
Location : Planet far far away

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum