The State Bank of Vietnam issued this message on 29/5, following Vinhomes' announcement of a program allowing customers with idle gold to convert it into cash for purchasing the company's real estate. Gold, silver, and gemstone companies will handle the entire process of converting gold to cash or vice versa.
The regulatory agency mandated that Vinhomes adhere to regulations concerning payments, foreign exchange, gold management, and real estate business. The company must also safeguard buyer rights and prevent any adverse market effects.
The State Bank of Vietnam stated that it encourages mobilizing idle gold from the public for socio-economic development. The regulatory body also aims to curb hoarding, speculation, and the use of gold as a means of payment.
However, programs involving loan mobilization or using gold as a direct or indirect payment method must comply with the law. The regulatory agency will monitor and strictly penalize any violations.
 |
State Bank of Vietnam headquarters. Photo: Hoang Giang |
State Bank of Vietnam headquarters. Photo: Hoang Giang
Under the Vinhomes program, the company does not directly accept gold from customers. Instead, gold, silver, and gemstone companies are responsible for valuation and conversion into cash. Investors then use this money to purchase Vinhomes real estate.
For participation, the company requires a minimum gold amount of 50% for conversion to purchase high-value units. After 5 years, depending on profit margins and demand, customers can choose to continue holding the property or receive an amount equivalent to 110% of the converted gold, based on the gold price at the 5-year mark.
 |
Vinhomes conversion model. Graphics: Anh Tu |
Vinhomes conversion model. Graphics: Anh Tu
In addition to the 5-year property return option, the company offers an alternative allowing customers to return after 3 years, with a 2% annual yield. The gold price at the time the customer returns the property will determine this amount.
Billionaire Pham Nhat Vuong's company announced it would purchase gold price insurance to mitigate future price fluctuations.
Currently, Vinhomes is the largest real estate developer in the domestic market. This year, the company targets 285,000 billion dong in revenue and a record consolidated after-tax profit of 60,000 billion dong.
Phuong Anh
