People are having difficulty buying gold bars.

Mr. Vu Hong Thanh, Chairman of the National Assembly's Economic Committee

In the socio-economic report presented at the opening session of the 8th Session of the 15th National Assembly on the morning of October 21st, the Government stated that measures to stabilize the gold market have been implemented decisively, helping to stabilize the sentiment of the people and businesses. The difference between domestic and international prices has decreased. The sale of SJC gold bars through four state-owned commercial banks and SJC has helped to make this commodity directly accessible to people in need.

Authorities have also increased monitoring, inspection, and handling of speculation, smuggling, and violations in the gold trading business. Currently, 100% of gold trading businesses use electronic invoices connected to the tax authorities.

However, upon review, the National Assembly's Economic Committee concluded that the management of the gold market remains inadequate, putting pressure on the foreign exchange market and exchange rates.

"It is very difficult for people to buy SJC gold bars when ordering online. This shows that the current price of gold bars does not accurately reflect market supply and demand," the auditing agency stated.

In reality, domestic demand for gold is high. Registration slots at state-owned banks and SJC are always full within minutes of opening. The maximum quantity registered for purchase is only 1-2 taels (approximately 37.5 grams). Banks like Vietcombank and VietinBank are constantly changing their methods and delivery times for gold. Instead of same-day delivery, buyers at these institutions now receive their gold two working days after registration and successful transaction.

Other gold bar trading brands such as DOJI, PNJ, Bao Tin Minh Chau, etc., have also almost stopped selling gold bars to the market after the State Bank of Vietnam intervened to "set the price" of this type of gold, due to a lack of supply.

The National Assembly's Economic Committee acknowledged the State Bank of Vietnam's efforts to stabilize the market through auctions of SJC gold bars and the sale of gold to four state-owned commercial banks. These banks supply the precious metal to the market through online sales channels or banking applications (apps), after which people receive the gold directly at branches and agents. This helps reduce the price difference between domestic and international SJC gold bars to around 5-7%.

"However, the current price difference between domestic and international markets will be difficult to maintain once market intervention measures are stopped," the agency noted.

According to data from the National Financial Supervisory Commission, the price difference between the two gold markets has increased sharply from 2020 to the present. This year, at times, the difference reached 20 million VND per tael, 8.3 times higher than the average for the period 2012-2020. This difference is due to high demand for gold, while the supply of gold bars is tightly controlled. On the other hand, the supply of raw gold for the production of gold bars and jewelry is also controlled through annual import quotas.

Supply is scarce amidst continuously rising gold prices. In September, domestic gold prices increased by 22.6% compared to the end of 2023 and nearly 32.3% compared to the same period last year. On average over the first nine months, the precious metal became nearly 26.3% more expensive compared to the same period last year, as world prices reached record highs.

On the morning of October 21st, each SJC gold bar reached 88 million VND in selling price, following the State Bank of Vietnam's intervention in adjusting the selling price. The buying price offered by gold businesses also increased correspondingly to 86 million VND per tael. The difference between domestic and international gold prices currently fluctuates between 2 and 4.5 million VND per tael.

On the morning of October 21st, each SJC gold bar reached 88 million VND in the selling price.

Besides gold, the auditing agency also pointed out difficulties in the corporate bond market. In the first nine months of the year, there were 268 private placements totaling nearly VND 250.4 trillion, and 15 public offerings totaling over VND 27 trillion. The pressure to repay maturing corporate bonds is significant, amounting to nearly VND 79.86 trillion. Of this, approximately VND 35.137 trillion (equivalent to 44%) is real estate bond debt maturing.

The corporate bond market is facing challenges in becoming a channel for raising medium- and long-term capital for the economy, according to the National Assembly's Economic Committee.

The reason is that this market is small compared to the long-term capital needs of businesses. The total outstanding debt in this market as of the end of August was over 1 trillion VND, equivalent to 10% of GDP. This figure is lower than Malaysia (54% of GDP), Singapore (25%), and Thailand (27%).

Furthermore, the issuance structure is unreasonable, with private placements accounting for as much as 88% and public offerings being limited (12%). "This restricts businesses' access to capital from public investors, creating risks to market transparency," the auditing agency commented.

The market also lacks pricing mechanisms, particularly for determining yields at maturity for bonds, as well as data on the probability of default (PD) of issuers. This makes it difficult for investors to assess, increases risk for individual investors, and limits the ability to construct a benchmark yield curve for the market.

"For corporate bonds to become a medium- and long-term capital raising channel, it requires efforts from regulatory agencies, financial institutions, and the issuing companies themselves," the Economic Committee stated.

This year, the government aims for a 7% growth rate, higher than the National Assembly's target (6-6.5%). To achieve this goal, the auditing agency recommends that the government tightly control credit, bad debts, and risks in the stock market, gold, corporate bonds, and real estate...

VN (according to VnExpress)

Source: https://baohaiduong.vn/uy-ban-kinh-te-cua-quoc-hoi-nguoi-dan-kho-mua-vang-mieng-396160.html