SJC is a state-owned gold trading enterprise under the administration of the Ho Chi Minh City People’s Committee. Established more than 35 years ago, the company has a network of over 200 retail locations and dozens of official agents, including outlets authorized to trade SJC bullion.

In 2012, the State Bank of Vietnam (SBV) designated SJC as the national gold brand. The company produces SJC-branded bullion and is responsible for ensuring the quality of its gold bars.

According to preliminary findings, the suspects allegedly exploited price-stabilization transactions, creating fake documents and records to secure illicit profits. Currently, the Police Investigation Agency is working to consolidate evidence, expand the case, and fully recover the assets for the state.

SJC’s monopoly on bullion: huge revenue, minimal profit

SJC consistently reports high annual revenues but low profits, particularly in the bullion sector. For example, the company's 2023 audited financial report recorded over VND 28.4 trillion (about USD 1.1 billion) in revenue, but post-tax profit was only around VND 61 billion. Production costs consumed nearly all revenue, totaling almost VND 28.2 trillion.

This discrepancy suggests that input costs were exceptionally high. Notably, during the first four months of 2023, SJC gold prices frequently exceeded international rates by more than VND 10 million per tael, at times reaching VND 18 million higher.

For several years, SJC has maintained this pattern of substantial revenue but minimal profit. In 2022, the company reported revenue of nearly VND 27.2 trillion, with a post-tax profit of just VND 49.2 billion. Comparable figures include:

- 2021: VND 17.7 trillion in revenue, VND 43.3 billion profit.

- 2020: VND 23.5 trillion in revenue, VND 55.8 billion profit.

- 2019: VND 18.6 trillion in revenue, VND 52.5 billion profit.

- 2018: VND 20.9 trillion in revenue, VND 27.8 billion profit.

- 2017: VND 22.9 trillion in revenue, VND 81.3 billion profit.

At the end of 2023, SJC's inventory, primarily gold, was valued at VND 1.446 trillion - a substantial portion of its total assets of VND 1.898 trillion.

Despite its advantages, especially in holding the bullion monopoly, SJC’s profitability lags behind other companies in the industry. In 2023, for example, Phu Nhuan Jewelry (PNJ) reported VND 33.1 trillion in net revenue, a gross profit of VND 6.058 trillion, and a post-tax profit of over VND 1.971 trillion. Similarly, PNJ's 2022 post-tax profit exceeded VND 1.810 trillion, while the first nine months of 2024 saw nearly VND 29.2 trillion in revenue and VND 1.382 trillion in post-tax profit.

Doji Jewelry Group, chaired by Do Minh Phu, earned VND 491 billion in post-tax profit in 2023 - about VND 1.3 billion per day - though profits declined from VND 1.017 trillion in 2022. Earlier figures include VND 150 billion and VND 187 billion in 2019 and 2020, respectively.

While SJC has a monopoly, the company’s business results have yet to reflect this competitive edge.

Since late 2023, gold prices - both SJC bullion and domestic jewelry - have surged to new highs. In May, SJC gold peaked at VND 92.5 million per tael, with late October and early November prices approaching VND 90 million per tael, but only about VND 4-5 million above international levels.

According to reports as of late 2023, Tran Van Tinh serves as Chairman (appointed in November 2019), with Le Thuy Hang as CEO (also appointed in November 2019) and Tran Hien Phuc as Chief Accountant (since May 2023). SJC’s current auditor is A&C Auditing and Consulting Co., Ltd.

SJC’s role in gold price stabilization

Since June 3, SJC, along with four state-owned commercial banks - Agribank, BIDV, Vietcombank, and Vietinbank - has been authorized by the SBV to buy gold for direct resale to the public after SBV suspended bullion auctions at the end of May. This move aims to reduce the price gap between SJC gold and international bullion. By October 29, the SBV had injected 11.46 tons of gold into the market through these five entities.

Previously, nine gold auctions starting April 22 (three of which failed) did not effectively narrow the price gap. These auctions provided 1.8 tons of gold, yet the domestic-international price difference at times reached VND 18 million per tael, particularly in May. Some National Assembly delegates have expressed concern that such disparities could encourage smuggling, deplete foreign reserves, and undermine economic stability.

In a May 29 hearing, SBV Governor Nguyen Thi Hong explained that the government is working diligently to address the domestic-international gold price gap, with the SBV increasing market supply through auctions, though with limited success.

The SBV has since transitioned to direct sales via the five authorized organizations, including SJC, and has implemented transparency measures to monitor market transactions closely. An interagency inspection team has been established to review compliance with anti-money laundering laws, examine transaction records, and identify potential illegal activities in gold trading to prevent speculation and price manipulation.

The investigation at SJC centers on allegations of exploiting price-stabilization transactions.

Manh Ha