At the National Assembly question session on the morning of November 25, Governor Nguyen Van Binh said that in the coming time, the State Bank will exclusively produce gold bars and use the SJC brand as SBV’s brand.
Dr. Le Tham Duong, Head of the Department of Banking and Finance, Ho Chi Minh City Banking University, said that this is the right decision.
The first is to avoid corporate monopoly (for-profit business).
SJC will become a national gold brand.
`The State Bank already has a monopoly on printing money, so now it is completely reasonable to have a monopoly on the production of gold bars. Furthermore, taking SJC as a national brand is also worthy because this brand accounts for 90% of the market.
However, Dr. Duong believes that the State Bank should also loosen the conditions on gold bar production and processing so that other businesses such as SBJ, PNJ or Agribank can process gold bars for the State Bank according to the law.
At the same time, the gold bar distribution stage should also be loosened.
However, Mr. Duong added that the Governor’s above approach at this time is completely correct, but this is only one of the temporary solutions to well control the gold market.
Representatives of Sacombank-SBJ also agreed with the State Bank’s use of SJC as the National gold brand.
According to her, the SBJ brand being wiped out in the future means a huge loss of money that the company had to spend to import production machinery lines and build the brand (according to estimates of no less than
Mr. Nguyen Thanh Truc, General Director of Agribank Gold Company also expressed his agreement with the Governor’s decision.
In addition, when SJC becomes a brand of the State Bank, Mr. Truc expects that Agribank Gold Company can also use its machinery and equipment to produce SJC gold bars for the Central Bank.
Meanwhile, Ms. Nguyen Thi Cuc, Deputy General Director of Phu Nhuan Jewelry Company PNJ, said that the Governor’s decision does not come as a surprise to businesses and the market.
`This is an appropriate decision. However, to be effective in stabilizing the gold market depends on whether the State Bank’s resources are strong enough,` Ms. Cuc said.
Regarding the fate of PNJ when it can no longer produce gold bars, this deputy general said that the company will strongly shift to parallel business with two gold bar brands SJC and PNJ (when the gold decree comes into effect, the
On the gold market today, after the Governor’s announcement that SJC will become a brand of the State Bank, there is not much impact on people’s gold buying and selling.
According to Mr. Nguyen Cong Tuong, currently price is the strongest influencing factor on investors’ trading activities, and the decision to use SJC as a national brand has almost no impact.
Similarly, at businesses that own non-SJC gold bars, there is no situation of people rushing to sell gold.
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