Proposing ministries to coordinate inspection of gold market

The Ministry of Industry and Trade, the Ministry of Public Security and the Ministry of Finance have been asked by the State Bank to coordinate in inspecting the buying and selling of gold bars and raw gold.

The move to coordinate gold market management took place after the Prime Minister directed the State Bank to manage and not let domestic gold prices differ too much from world prices .

Accordingly, the State Bank proposed that the General Department of Market Management (Ministry of Industry and Trade) strengthen market inspection and supervision, handle and provide information on violations, especially in the buying and selling of raw gold and gold bars.

At the same time, this agency also requested the Ministry of Public Security to coordinate to limit the situation where some businesses take advantage of high gold prices to speculate, profit, and smuggle gold across the border, causing market disruption.

The Ministry of Finance is proposed to increase guidance and inspection of the issuance and use of invoices and documents in gold trading activities; strictly handle acts of issuing and using illegal invoices.

People buy and sell at a gold shop in Binh Thanh, Ho Chi Minh City. Photo: Quynh Trang — People buy and sell at a gold shop in Binh Thanh, Ho Chi Minh City. *Photo: Quynh Trang*

On the State Bank's side, this agency said it is ready to increase the supply of SJC gold bars to the market and has solutions to limit the impact on exchange rates and inflation.

Since 2012, the State Bank has issued Decree 24 with the policy of "anti-goldification" of the economy. Since then, the State Bank has monopolized the production of gold bars and only hires Saigon Jewelry Company (SJC) to process when needed under the supervision of the operator.

However, in the past decade, the State Bank has not produced more gold bars nor granted licenses to businesses to import raw gold. Therefore, the annual supply of gold bars has not increased but even decreased because there are times when gold bars are processed into raw materials, jewelry and exported abroad.

The State Bank said it is evaluating the implementation of Decree 24. This month, the regulator will submit a summary report on Decree 24, proposing amendments and supplements to a number of gold market management mechanisms in line with the new market context.

Quynh Trang

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