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Vietnam scrutinizes 4 gold firms, 2 banks amid surge in local gold prices

Vietnam scrutinizes 4 gold firms, 2 banks amid surge in local gold prices

Friday, May 24, 2024, 13:42 GMT+7
Vietnam scrutinizes 4 gold firms, 2 banks amid surge in local gold prices
Deputy Governor of the State Bank of Vietnam Pham Quang Dung speaks at a conference to announce an inspection into gold trading at four gold firms and two banks on May 23, 2024. Photo: SBV

The State Bank of Vietnam on Thursday announced an inspection into four gold firms and two banks for their gold trading activities amid a recent surge in domestic prices.

The entities subject to the scrutiny are Saigon Jewelry Company (SJC), DOJI Gold & Gems Group Joint Stock Company (DOJI), Phu Nhuan Jewelry Joint Stock Company (PNJ), Bao Tin Minh Chau Company, TPBank, and Eximbank.

The inspection team includes representatives from the Government Inspectorate, the Ministry of Public Security, the Ministry of Finance, and the Ministry of Industry and Trade.

The process is set to last 45 days.

The inspection will center on compliance with legal regulations on gold business, anti-money laundering practices, invoice issuance, use of receipts and accounting policies, and tax obligations.

The team will scrutinize gold business activities at these entities from January 1, 2020 to May 15 this year, though that period could be extended if necessary.

It is also possible that other entities might be added to the list during the inspection, according to Deputy Governor of the SBV Pham Quang Dung.

Dung stated that the central bank plans to work with relevant ministries and agencies to closely manage gold business activities and impose harsh sanctions on violators.

The SBV will continue to adopt various measures, enhance its supply of gold bars, and narrow the price gap between domestic and global gold prices to stabilize the local gold market.

In early May, the local prices of the yellow metal constantly soared to new highs. In particular, the selling price of SJC-branded gold bullion reached a peak of VND92.4 million (US$3,632) per tael on May 10, nearly VND20 million ($785) higher than the global price.

A tael is equivalent to 37.5 grams or 1.21 troy ounces.

Following an announcement of the inspection, the local selling price of gold stood at VND89.5 million ($3,500) per tael on Friday morning, down VND300,000 ($11.7) per tael.

Meanwhile, gold was traded at $2,329 per ounce in the global market the same day, equivalent to VND71.5 million per tael, down $34 per ounce.

Despite a fall in prices of SJC-brand gold bars, the gap between domestic and international prices remains wide, at VND17.96 million ($703) per tael, as the global rates have dropped sharply over the past few days.

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Tieu Bac - Anh Hong / Tuoi Tre News

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