Philippine School of Business Administration

R. Papa St., Sampaloc, Manila

Submitted by:
Nicasio, Naiomi Marice S.
 TABLE OF CONTENTS

I. INTRODUCTION
1. Mission/ Vision
2. Seal/ Logo/ Marker
3. Brief History

II. Organizational Profile

III. Monetary Tools

IV. Financial Supervision

V. Payments and Settlement Systems

VI. Currency Management

VII. International Reserves Management

VIII. Conclusion

I. Introduction
Central banks are important public institutions. Since the start of the Global Financial Crisis, they have
again been subject to close scrutiny. This is in large part due to the fact that some of the most influential
central banks have become strongly involved in the public sector’s efforts to mitigate the effects of the
financial crisis. For instance, the Federal Reserve System (Fed), the Bank of Japan (BoJ), and the
European Central Bank (ECB), among others, have pursued policies of highly increased levels of market
liquidity and low interest rates in order to stimulate economic growth. Meanwhile, important changes
have also occurred in numerous other aspects of central banking. This dissertation sheds light on
selected issues and tendencies in central banking that receive less attention due to the often ubiquitous
focus on monetary policy issues in scholarly articles and the media. The underlying idea for this work was
that a lot of data on different central bank issues is available but either not in the right format or not
extensively used.

Mission and Vision

SBV has a function of State management of currency and banking operations, and acts as a bank for
credit organizations. The bank is allowed to issue currency and conduct monetary services in favor of the
Government. SBV’s operations are aimed to stabilize currency value, help assure safe banking activities
and a secured system of credit organizations, and boost socio-economic development in conformity with
socialist orientations.”

Overall goal and mission: Managing the monetary policy in a proactive and flexible manner in close
coordination with the fiscal policy and other macroeconomic policies in order to control inflation within the
target level of about 4% for 2021, supporting the macro-economic stability, contributing to the economic
growth recovery, and maintaining the stability of the forex and the money markets.

The Law on the State Bank of Vietnam 2010 stipulates:"The national monetary policy consists of national-
level decisions on monetary affairs made by competent state authorities, including decisions on the
objective of currency value stability which is denoted by the inflation rate, and decisions on the use of
tools and measures to obtain the set objectives."

Greetings

GREETINGS OF SBV GOVERNOR ON LAUNCHING OF SBV WEBSITE’S NEW INTERFACE

 ---------------------------------------------------------------

On the occasion of the launching of the new interface of Website of the State Bank of Vietnam(SBV
Website), I would like, on behalf of the Party Committee and theManagement Board, to express my warm
congratulation and best wishes to the Editorial Board, staff, media workers, collaborators as well as
domestic and foreign readers.

Over the past years, the SBV Website has gradually developed and become an important tool
inseminating the directives, policies, and legal texts of the Communist Party and the State, and
mechanisms and policies of the banking sector to the public. The SBV Website has been becoming an
effective and useful channel of information on monetary and banking operations, thus contributing to
disseminating knowledge, providing orientation and bringing about the full support of the society for
banking operations, stabilizing the psychology of the people and investors from within and without in light
of the movements of the domestic and world economy. The SBV Website is the SBV official channel of
information on monetary policy and banking operations, published in Vietnamese and English, in the
timely service of domestic and foreign readers. Over the past years, the SBV Website has effectively
been disseminating macro-economic policies, especially the interest rate subsidy policy in order to
proactively prevent economic slowdown, stabilize macroeconomy, and ensure social protection, thereby
positively contributing to the successful implementation of the tasks of the banking sector in particular and
the national socio-economic development in general.I would like avail myself of this opportunity to
commend the achievements of the SBV Website over the past years.

The fulfillment of the upgrading project and the opening of the Website’s new interface show the
enormous efforts and determination of the SBV Office, the Website’s Editorial Board and the relevant
entities in order to gradually improve and develop the SBV Website, hence meeting the higher and higher
requirement of information and communication of monetary and banking operations in the new
circumstances. This is also a favorable condition for the Editorial Board to further renovate the collecting
and updating of information on monetary and banking operations, and to make the information speedy,
accurate, timely and effective.

I do hope that in the coming time, the SBV Website will continue to bring into full play its obtained
achievements, and to make more proactive and creative efforts to be worthy of an information bridge
between the central bank and the public, thereby meeting the expectation of domestic and international
readers who are interested in the SBV as well as banking operations in the economy.
Best regards,

HISTORY
Before the August Revolution in 1945, Vietnam was a feudal-colonial country under the French
colonialists’ rule. The banking and credit system was founded and protected by the French colonialists
through the Indo China bank. It functioned as both the central bank of the whole Indochinese region
(Vietnam, Laos and Cambodia) and a commercial bank with commercial banking operations and
investment.

After the August Revolution, one of the key tasks of the August Revolution then, was to build an
independent and autonomous monetary and banking system to serve for the national cause of revolution
and construction. The task was fulfilled by 1950, when the anti-French resistance war grew stronger,
obtaining many triumphs in the battlefield, and expanding the liberalized region. In this context, the
development required economic and financial activities to be improved and promoted to meet new
demands. On the basis of the new economic and financial policy set out in the 2nd Congress of the
Vietnam Workers’ Party (February,1951), President Ho Chi Minh signed Decision 15/SL on the
establishment of the Vietnam National Bank – Bank of the first people’s democratic state in Southeast
Asia in order to carry out five urgent missions: issuing banknotes, managing treasury, carrying out credit
policy in order to facilitate production and coordinating with the trade authorities for monetary
management and struggling against the enemy. The foundation of the Vietnam National Bank was the
result of the struggle to develop an independent, and autonomous monetary and credit system, marking a
new development step, i.e, changing the quality of the national monetary and credit sector.

During anti – American resistance war ( 1955 – 1975), the performance of the Vietnam National Bank
focused on currency management and circulation under the socialist economic management principles;
formulated and promoted bank credit scheme for state - owned and collective enterprises; improved non-
cash payment, established payment centers as commercial banks; expanded international credit and
payment relationship; implemented the state exclusive scheme for foreign exchange management.

The Vietnam National Bank was renamed as the State Bank of Vietnam on October 26, 1961.

From 1975 to 1985 - the ten-year postwar economic recovery period: The banking sector had quickly
taken over the banking system of the old regime in the South, revoked the old banknotes in both the
South and the North and issued new kinds of banknotes of the Socialist Republic of Vietnam. In this
period, basically, the state banking system did not implement the market – oriented monetary, but still
served as a budget tool.

In March, 1988, the Council of Government issued Decree No. 53/HDBT laying the foundation to
"transform the banking system to commercial operations”. In May 1990, the Ordinance on the State Bank
of Vietnam and ordinance on banking, credit co-operatives and finance companies, were enacted,
thereby officially changing the operation mechanism of the banking system of Vietnam from one-tier to
two – tier system, in which the SBV implements the state management of currency trading and banking,
and implements the task of a central bank; The tier of commercial banks and credit institutions conduct
currency trading, credit, payment, foreign exchange and banking services in line with law.

From 1990 up to now, the functions, roles and responsibilities and structure of the SBV continue to be
supplemented and completed in line with the Law on the State Bank of Vietnam and the Law on Credit
institutions.

II. Organizational profile

Pursuant to Decree No. 26/2014/NĐ-CP issued by the Government on April 7, 2014 on the organization
and operation of the banking inspection and supervision, the Banking Supervision agency is a state
supervision body having the organization structure as follows:
1. The Banking Supervision Agency under the SBV.
2. The Supervision units under municipal and provincial branches of the SBV established in
provinces and municipalities where supervision departments under the SBV Banking Supervision Agency
do not exist.
The SBV Banking Supervision Agency is a unit having the same rank as general departments
subordinated to the SBV, which advises and assists the SBV governor in the state management of credit
institutions, foreign bank branches, the state management in supervising, working on claims and
accusations, preventing corruptions and money laundering, monitoring deposit insurance; conducts
inspections, and supervises banks in the fields under the management of the SBV; prevents money
laundering and terrorist financing in accordance with the laws and as assigned by the SBV governor.
Pursuant Decision No. 35/2014/QĐ-TTg issued by the Prime Minister on June 12, 2014, on the functions,
missions, authority and organization of the SBV Banking Supervision Agency, the agency is comprised of
11 departments:
- Department for inspection and supervision of domestic credit institutions (Department I);
- Department for inspection and supervision of foreign credit institutions (Department II);
- Department for administrative inspection, appeals, accusations, and corruption preventing and
fighting (Department III);
- Department for banking system safety supervision (Department IV);
- Department for banking operation safety policies (Department V);
- Department for management of credit institution and banking operation licensing (Department
VI);
- Department of human resources (Department VII);
- Office;
- Office for banking supervision, Hanoi city (Office I);
- Office for banking supervision, Ho Chi Minh City (Office II);
- Office for preventing and fighting money laundering (Office III);
Supervision units of the SBV municipal and provincial branches are under the organization of the SBV
branches which assist SBV branch directors in state management, conducting administrative inspection,
dealing with appeals, accusations and violations, preventing and fighting corruption and money
laundering, fighting terrorism financing, inspecting and supervising banks in the local area as assigned
and authorized by the SBV governor, and as regulated by law.
The supervision bodies of municipal and provincial branches of the SBV operate under the management
and direction of SBV branch directors and the direction and guidance of the SBV Banking Supervision
Agency in banking inspection and supervision, working on appeals and accusations, preventing and
fighting corruption and money laundering, and fighting terrorism financing.

III. Monetary Policy Tools

The Government shall submit its proposals to the National Assembly to consider and determine the
annual inflation targets. The Prime Minister and the SBV Governor shall determine the use of tools and
management measures to implement the national monetary policy objectives based on the Government's
regulations.

According to the 2010 Law on the State Bank of Vietnam, the SBV Governor shall determine the use of
tools for implementing the national monetary policy, including the re-financing, the interest rates, the
exchange rates, the reserve requirements, the open market operations, as well as other tools and
measures as stipulated by the Government.

- Re-financing: Refinancing is a form of credit extension by the SBV, aiming to provide short-term loans
and payment facilities for credit institutions. The SBV stipulates and performs the refinancing for credit
institutions in the forms of extending loans guaranteed by valuable papers; discounting valuable papers;
and other forms of refinancing.
- Interest rates: The SBV shall announce the re-financing interest rates, the key interest rates and other
interest rates to implement the monetary policy, and to prevent high-interest lending. In the case of
unexpected developments in the money market, the SBV may stipulate the mechanism for managing the
interest rates applied to lending-borrowing transactions among the credit institutions, and between the
credit institutions and their customers, as well as other credit relations. (See SBV's Table of Interest
Rates)

- Exchange rates: The exchange rates of VND against different foreign currencies shall be determined
on the basis of foreign currency supplies and demands in the market with certain State regulation. The
SBV shall announce the exchange rates, determine the exchange rate regime and the mechanism for
regulating the exchange rates. (See Table of Central Exchange Rates)

- Reserve requirements: Reserve requirements mean the amount of money that the credit institutions
must deposit at the SBV to facilitate the implementation of the national monetary policy. The SBV shall
stipulate the ratio of reserve requirements for each type of credit institutions and each kind of deposits at
the credit institutions. The SBV shall also stipulate the interest payment on the reserve deposits, and any
excess deposits applicable to each type of credit institutions for each kind of deposit.(See Table of
Reserve Requirements)

- Open market operations: The SBV shall perform the open market operations by purchasing and
selling valuable papers with the credit institutions; and shall stipulate the types of valuable papers to be
traded via the open market operations.

IV. Financial Supervision

Banking inspection and supervision aim to contribute to assuring the safe and sound development of the
system of credit institutions and the financial system; to protect lawful rights and interests of depositors
and credit institutions’ clients; to maintain and increase public confidence in the system of credit
institutions to ensure the compliance with monetary and banking laws and policies; and to contributeto
raising the effectiveness and efficiency of state management in the monetary and banking sector.

The contents of banking inspection and supervision include: (i) Inspection; (ii) Supervision; (iii)
Formulating policies, legal documents; granting licenses.
(i) Inspection
Contents of banking inspection:
Inspecting the compliance with monetary and banking laws and regulations and other relevant
regulations, and the the compliance with licenses issued by the SBV;
Examining and assessing the risk degree, risk management capacity and financial status of the
entities subject to banking inspection; assessing potential risks, the quality and efficiency of the
governance and management systems, auditing and internal supervision systems of the credit institutions
and foreign bank branches, including the system of risk detection, measurement and supervision through
analyzing the factors affecting the operational safety, the quality and effectiveness of risk management
system, the ability to prevent risks of credit institutions and foreign bank branches;
 Proposing the state authorities to amend, supplement, and abolish existing legal documents or
promulgate new ones to meet the requirements of state management of monetary and banking
operations;
Requesting entities subject to banking inspection to take measures to limit, minimize and resolve
risks to ensure safety and prevent violations in banking operations;
Detecting, preventing and promptly dealing with violations; and requesting competent authorities to
handle violations of monetary and banking laws.
Types of banking inspection:
Regular inspection according to plans approved by the authorities.
Ad-hoc inspection in the case of detecting signs of violations, potential risks, threats to the
operational safety and healthiness of the entities subject to inspection; and at as a need of dealing the
appeals and accusations, of preventing and fighting corruption and money laundering, of fighting terrorism
financing, or under the assignment by the state management authorities.
(ii) Supervision
Contents of Banking Supervision:
Collecting, synthesizing and processing documents, information and data of the entities subject to
banking supervision as required; combining the supervision of the the whole credit institution system with
that of individual credit institutions and foreign bank branches;
Examining and monitoring the compliance with the regulations on safety of banking operations and
other related regulations; the implementation of the supervision conclusions, recommendation, and
decisions;
Regularly analyzing and assessing financial status, operations, administration, management and risk
degree of credit institutions and foreign bank branches; Conducting annual rating for credit institutions on
the basis of operational safety levels;
Detecting and warning of factors and negative trends that may endanger the safety of credit
institutions, foreign bank branches and the credit institution system; the risks and threats of violating
monetary and banking regulations and laws;
Proposing and recommending measures to prevent and handle risks and violations of laws.
Banking supervision is conducted on the basis of a centralized system with the combination of monetary
and banking laws compliance supervision and risk-based supervision. So far supervision consists of not
only the supervision of observance of laws and safety ratios, but also assessing and warning of risks in
the operations of credit institutions. In addition to the supervision of individual credit institutions,
macroprudential supervision systems are to be built and utilized, such as the Financial Projection Model
(FPM), Financial Soundness Indicators (FSIs), stress-testing models and assessing commercial banks’
operating efficiency based on the Data Envelopment Analysis (DEA) model.
(iii) Formulating policies, legal documents; granting licenses
Formulating policies, legal documents:
The SBV Banking Supervision Agency advises and assists the SBV Governor in formulating and
issuing legal documents or submitting to higher relevant authorities to issue policies and legal documents
regulating banking organization and performance, safety of banking operations, banking inspection and
supervision, deposit insurance, and preventing and fighting money laundering and terrorism financing
under the SBV’s management responsibilities.
Granting licenses:
The SBV Banking Supervision Agency advises and assists the SBV Governor while banking
supervision departments at the municipal and provincial SBV branches advise and assist SBV branch
directors (as SBV branch directors assigned or authorized by the SBV governor) in licensing as follows:
 Issuing, amending, revoking licenses of credit institutions; licenses to open branches, and
representative offices of foreign credit institutions and other institutions conducting banking activities, and
licensing other type of banking operations;
Issuing and revoking licenses of credit information service institutions;
Certifying the registration of credit institution charters;
Approving the buying, selling, separating, merging, acquisition, transforming legal type , and
dissolving credit institutions and foreign bank branches; approving the list of appointed candidates for
credit institutions’ board of directors, management board, supervisory board and chief executive officer
(director), except for the personnel at 100% state-owned commercial banks, and those positions assigned
or nominated by the state capital holder of more than 50 percent of the charter capital of state-owned
commercial banks; approving the nominees for foreign banks’ chief executive officer (director); approving
the establishment and dissolvent of credit institutions’ domestic branches, representative offices, units
and overseas branches, representative offices and other types of overseas commercial presence of credit
institutions; approving credit institutions’ establishment and purchase of subsidiaries and affiliates;
approving credit institutions’ capital contribution and stake purchase; approving other management,
organization, finance and operation issues subject to the SBV approval or license as regulated by law;
Handling issues related to credit institutions and foreign bank branches’ organization,
administration and management to ensure the safe and sound banking operations in accordance with
laws;
Representing the rights and responsibilities of the state capital owner at the credit institutions in
accordance with laws;
Constructing and organizing, observing the implementation of plans to consolidate and reconstruct
credit institutions and foreign bank branches.
The SBV Banking Supervision Agency has the right to decide some of the above contents according to
the assignment and authority given by the SBV Governor.
V. Payments and Settlement Systems
Pursuant to Article 28 of the Law on the State Bank of Vietnam (SBV), the SBV shall organize, manage,
and oversee the national payment system, provides payment services for commercial banks; participates
in organization and overseeing the performance of payment systems and conducts the state management
of payment tools.
At present, payment transactions in Vietnam are processed through several payment systems: (i) the
payment system operated and managed by the SBV including electronic/paper clearance and interbank
electronic payment systems; (ii) the bank card switching and clearing system; (iii) the securities clearing
and settlement system; and (iv) the internal and bilateral payment systems operated and managed by the
credit institutions.
The international payment transactions processed through international SWIFT and WESTERN UNION
remittance services which are provided by the credit institutions directly cooperating with international
payment service providers. Since 2007, the Joint stock Commercial Bank for Foreign Trade of Vietnam
(Vietcombank) has been appointed by the SBV as a clearing bank for Visa card transactions of domestic
Visa member credit institutions via their accounts opened with VCB. VCB also provides payment services
for Visa card transactions in the domestic market. From 2012, the Joint Stock Commercial Bank
forInvestment and Development of Vietnam (BIDV) has been appointed as the clearing and settling agent
for Master card domestic transactions.
The globalization and economic integration and the informatics technology development lead payment
operations to an extensive expansion with a faster speed and increase of both quantity and value of the
transactions. The development of the payment system also comprises various risks for payment
operations requiring the central banks to oversee it closely and effectively.
The objectives of the SBV oversight of the national payment systems:
- To ensure the stability, safety and the effectiveness of the national payment system as well as
other payment systems, tools and services in the economy.
- To enhance the role of the national payment system as the most effective channel for the
monetary policy transmission and implementation.
- To prevent the payment system risks, especially the systematic risks, and contribute to
maintaining financial stability.
- To ensure the legal interests and obligations of participating members of the payment systems.
- To protect users of payment tools and services, strengthening the public's confidence in the
banking sector.
The main contents of the SBV's oversight of payment operations:
Since 2008, the SBV has established a professional unit operated under the Payment Department to
supervise payment systems. On the basis of assigned functions and mandates, the Payment Department
cooperates with relevant entities to research and gradually implement the tasks of supervising in
accordance with the international requirements for payment supervision of a central bank, specifically:
 - To formulate a set of data criteria on payment system, information collection system, database,
and formulating periodical reports on the system oversight and operations.
- To organize and implement the overseeing activities including:
+ Overseeing the IBPS with online oversight, synthesizing and analyzing information, results
and reports on IBPS operations daily and overseeing the compliance;
+ Overseeing the retail payment systems;
+ Formulating the periodical reports on other payment systems (every 6 months).
In order to complete the legal framework, accelerate the capacity of comprehensive oversight for
payment systems in Vietnam in accordance with international standards and the specific conditions of
Vietnam, the SBV Governor issued the Decision No 1490/QD- NHNN dated July 29, 2014 to promulgate
the SBV’s strategy for payment system supervision for the period 2014 – 2020.
The State Bank of Vietnam provides treasury services through money collection and payment for account
holders, and transportation, counting, classification and disposal of currency in circulation.
Treasury services provision includes:
• Providing treasury services through money collection and payment: the State Bank of Vietnam issues
and collects currencies from circulation by cash collection and payment and other professional operations
in accordance with Circular No.23/2012/TT-NHNN of the State Bank of Vietnam dated September 8, 2012
on stipulating regime of cash regulations and cash transactions.
• Identifying genuine or counterfeit banknotes: the State Bank of Vietnam identifies counterfeit or
suspicious banknotes upon the demand from institutions and individuals in accordance with Circular No.
28/2013/TT – NHNN of the State Bank of Vietnam dated December 5, 2013 on dealing with counterfeit
and suspicious banknotes.
• Collecting and exchanging damaged banknotes: the State Bank of Vietnam collects and exchanges
damaged banknotes; publicizes specimen banknotes and stipulates regulations on collecting and
exchanging damaged banknotes; selects, classifies and assesses damaged banknotes in accordance
with Circular No.25/2013/TT – NHNN dated December 2, 2013 on collecting and exchanging damaged
banknotes.

VI. Currency Management

All foreign exchange payment transactions and remittance are freely undertaken by residents and non-
residents via their current accounts in accordance with the law on foreign exchange management. All
foreign exchange payment transactions and remittance related to the export and import of goods and
services must be made via bank accounts at the licensed credit institutions.
Residents having foreign currency income from export of goods and services or from other current
revenues in foreign countries must transfer those revenues to foreign currency accounts opened at the
licensed credit institutions in Vietnam matching with the date of contracts or date of the payment
documents, for the exception of the cases that the SBV allow to retain the whole and a part of foreign
currency revenue from abroad.
Vietnamese national residents are permitted to buy/sell, to transfer or to carry foreign currencies abroad
in accordance with the SBV’s regulations for the following purposes: overseas study and healthcare,
business, travel and visit, for payment of fees and charges; supporting relatives; inheritance remittance to
overseas heirs; remittance for overseas settlement purposes and one way transfer for other legitimate
needs.
In the territory of Vietnam, all kinds of transactions, payments, listing, advertisement, price quoting,
contracting, agreements and other transactions made by residents and non-residents are not allowed to
be denominated in foreign currencies, except for certain cases in accordance with SBV’s regulations.
Credit institutions, foreign bank branches and other organizations are allowed to provide foreign
exchange services in the international and domestic markets under the approval from the SBV.
Residential enterprises, cooperatives, unions of cooperatives, credit institutions and foreign bank
branches are allowed to borrow and pay foreign debts on the basis of self – borrowing and self-
repayment principles in accordance with laws. Individual residents are permitted to borrow and pay
foreign debts on the basis of self – borrowing and self- repayment principles in line with the Government’s
regulations. Resident borrowers are required to comply with applicable regulations and conditions on
overseas borrowing and payment; register the debts, open and utilize bank accounts, withdraw and
transfer money to pay the debts, report the loan utilization in accordance with regulations.
For foreign debts guaranteed by the Government, after the Ministry of Finance signs a guarantee letter for
debtors, the SBV will confirm the registration/ registration of changes of foreign debts in accordance with
the applicable regulations on management of corporate borrowing and repayment of foreign debts.
Economic organizations conduct overseas lending operations, except for the export of deferred payment
goods and services; and to serve as a guarantee for non-residents at the approval of the Government.
The SBV is responsible to guide the procedures for opening and using foreign debt accounts, transferring
capital abroad and collecting foreign debts, registering and recovering the debts and other capital transfer
transactions related to lending and foreign debt collection by the economic organizations.

VII. International Reserves Management

FDI enterprises and foreign investors participating in business cooperation are required to open direct
investment accounts at the licensed credit institutions. The capital contribution, the transfer of principal
capital, profits and other legitimate incomes must be undertaken via these accounts.
Regarding indirect investments, non-residential foreign investors are required to open indirect investment
capital accounts in VND to perform indirect investment in Vietnam. Investment capital in foreign
currencies must be converted into Vietnam dong to make investment via those accounts.
For overseas indirect investments, residents, which are not credit institutions, are required to open and
use bank accounts, to transfer investment capital abroad, to transfer capital, profit and other earnings
back to Vietnam in accordance with the SBV’s regulations.
The SBV performs the following functions and tasks for the state international reserve management:
To set up the annual level of the state international reserves and the periodical levels of exchange rate
stabilization and gold market management Funds.
To issue regulations on the structure, standards and the levels of investments for the state international
reserves.
To buy from and sell foreign currencies to the State budget, international organizations, to utilize the
state's international reserves in accordance with laws; to implement bilateral swap agreements signed
with other central banks and international financial institutions.
To report to the competent authorities about the state international reserve positions, to provide data on
the state international reserves in accordance with laws.
The legal ownership of gold by entities and individuals are acknowledged and protected in accordance
with laws.
Organizations and individuals engaged in the business of gold must comply with the Government’s
regulations and other relevant provisions. The SBV, on behalf of the Government, manages gold trading
for the aim of developing a stable and sustainable domestic gold market.
- For the gold bullion market:
The State is the sole producer of gold bullions, the sole exporter and importer of raw gold for gold bullions
production. The SBV organizes and manages the production of gold bullions; exports and import raw gold
for gold bullions productions; purchases and sells gold bullions in the domestic market in accordance with
Decisions of the Prime Minister.
Gold bullion trading is a conditional activity licensed by the SBV.
- For gold jewelry market:
Gold jewelry production is a conditional activity under the certificate of eligibility and qualification granted
by the SBV.
Gold jewelry trading is a conditional activity without a granted certificate of eligibility and qualification of
the SBV.
- For the export and import of raw materials for the gold jewelry production:
+ The SBV will consider granting a license of importing raw gold materials to produce gold jewelry for
those enterprises including: the enterprises with the certificate of eligibility and qualification granted by the
SBV; the enterprises with foreign investment; the enterprises investing in gold mining abroad and having
demand for importing their mined gold.
+ The SBV will consider allowing the licensed gold mining enterprises to export the raw gold.
+ Gold trading enterprises which have signed gold jewelry processing contracts with foreign enterprises
are considered by the SBV to be granted the license of temporary import of raw gold and to re-export
finished products.
- The other gold trading are operations under the list of restricted goods and services. Organizations and
individuals shall be eligible to operate the other types of gold trading after getting the permission from the
Prime Minister and license from the SBV.
- Individuals carrying gold when entering and exiting the country:
+ Individuals who travel with passports are allowed to carry gold jewelry, ornaments. They shall not be
permitted to carry gold bars and gold material (except for the settlers).
+ Individuals who travel with other travel documents are not allowed to carry raw gold, gold bullion, gold
jewelry (excluding jewelry for personal use).
+ In case of settling in Vietnam: Foreign individuals who are allowed to settle in Vietnam and Vietnamese
individuals who are allowed to settle in other countries are allowed to carry raw gold, gold bars, gold
jewelry when entering and leaving Vietnam.
The SBV has rights and obligations to conduct the inspection and supervision of the production of gold
jewelry; gold bullion and jewelry trading; the export and import of raw gold and other gold trading.