The State Bank requires Vinhomes to comply with regulations when exchanging gold for houses

The above content was posted by the State Bank on May 29, after Vinhomes announced a program for customers who own idle gold sources to convert into cash to buy real estate of this company. The entire process of converting gold into money or vice versa will be done through gold, silver and gemstone companies.

Accordingly, the management agency requires Vinhomes to comply with regulations on payment, foreign exchange, gold management and real estate business. This business also needs to ensure the rights of buyers and avoid adverse impacts on the market.

The State Bank said that mobilizing idle gold from the people to serve socio-economic development is encouraged. The regulator also wants to limit hoarding, speculation and not using gold as a means of payment.

Therefore, programs related to mobilizing loans or using gold as a means of direct or indirect payment must ensure compliance with the law. The management agency will monitor and strictly handle violations.

According to Vinhomes’ program, businesses will not directly receive gold from customers. Instead, gold, silver and gemstone companies will be responsible for pricing and converting into money. Investors use this money to buy real estate from Vinhomes.

Regarding participation conditions, the company said the minimum gold level to convert to buying a house is from 50% for high-value homes. After 5 years, depending on profit margin and demand, customers can choose to continue holding the house or receive back an amount equivalent to 110% of the converted gold amount (applied according to the gold price at the time after 5 years).

Besides the option to pay off the house after 5 years, this company adds the option to allow customers to pay after 3 years, with a return of 2% per year. This amount will also be calculated according to the gold price at the time the customer returns the property.

Billionaire Pham Nhat Vuong’s business said it will buy gold price insurance to cope with future price fluctuations.

Currently, Vinhomes is the largest investor in the domestic real estate market. This year, the business targets revenue of 285,000 billion VND and consolidated profit after tax at a record level of 60,000 billion VND.