Solutions to stabilize the gold market.

Many proposals have been put forward to effectively manage the gold market.

Today, SJC gold prices are trading around 79 million VND/ounce (buying price) and nearly 81 million VND/ounce (selling price). Currently, SJC gold bars are about 15 million VND/ounce higher than the world gold price. Following the Prime Minister's directive on gold market management, the State Bank of Vietnam has completed the review of Decree 24 based on feedback from ministries, agencies, and experts. Many proposals have been put forward to effectively manage the gold market.

According to the State Bank of Vietnam's finalized assessment of Decree 24, the agency will consider abolishing the monopoly mechanism for SJC gold bars and propose applying a specific tax rate to the business of buying and selling gold bars.

Mr. Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam, stated: "Only by analyzing the advantages and limitations, and considering the conditions, can we consider this monopoly mechanism. We propose that the Ministry of Finance review and improve the legal framework to limit tax revenue losses in the operations of gold trading establishments and consider the tax rate as recommended by the Ministry of Public Security and the Gold Association."

A mechanism for intervention should be established to address discrepancies between domestic and international gold prices. This is also one of the proposals put forward to effectively manage the gold market.

Mr. Luong Tam Quang, Deputy Minister of Public Security, stated: "We also propose a reassessment of the management of gold molds, the molds used in the production of SJC gold bars, and the management plan for these molds. SJC is state-owned, not a company. Currently, these molds are located in Ho Chi Minh City, at SJC, and the company is under the management of the Ho Chi Minh City Party Committee. During the survey and assessment, we didn't know if the production facility could be classified as equivalent to a cooperative."

Based on contributions from ministries, sectors, and experts on effective gold management policies, many of which are closely aligned with practical realities, the State Bank of Vietnam will consider supplementing and amending Decree 24 to ensure its early implementation in order to manage and stabilize the domestic gold market.

According to VNA

Source