The State Bank of Vietnam said it has chosen Saigon Jewelry Company Ltd. as its official gold bar supplier, only allowing the company to produce the bullion when being ordered.
The long-anticipated decision means that the firm has to stop production of its own SJC-branded gold bars, according to a statement on the government's website Thursday. The central bank will assigned orders to the company based on market demand and monetary policy.
Saigon Jewelry, managed by the Ho Chi Minh City People's Committee, accounts for more than 90 percent of the domestic gold bar market. It will save money to use the company's facilities instead of investing in a new production line, the central bank said.
The State Bank of Vietnam has also banned commercial banks from receiving gold deposits and offering gold loans.
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