In less than a year, the Government has issued numerous directives and instructions to manage the gold market. Most recently, on April 11, 2024, the Government Office issued Notice No. 160, summarizing the Prime Minister's conclusions from a meeting on solutions for managing the gold market in the coming period, with more specific directives and more decisive and coordinated solutions.
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| Hopefully, with strong actions from the Government and the State Bank, the domestic gold market will stabilize in the near future, harmonizing the interests of all parties. (Illustrative image) |
According to experts, in a market economy, fluctuations in gold prices are normal, but if timely solutions are not implemented to address these fluctuations, they will affect economic recovery and development, as well as the major balances of the macroeconomic economy. In Vietnam, the State has a monopoly on gold trading, so gold prices are influenced by the international market. Since 2012, with the regulatory tool of Government Decree 24/2012/ND-CP, the gold market has been tightly managed, preventing the "goldization" of the economy. The State Bank of Vietnam does not release additional gold into the market, and SJC has become the State's exclusive gold supplier. Since supply is not abundant, even slight fluctuations can cause businesses to hoard, speculate, or simply react psychologically, leading to a sharp increase in gold prices.
The scarcity of supply, rising domestic gold prices, and the large difference between domestic and international prices have led to an increase in gold smuggling. While the domestic gold market has closed, the three neighboring countries of Laos, Cambodia, and China have all opened their gold markets. For many years, gold smuggling, especially in the southwestern border provinces and the central region bordering Laos, has been continuously escalating, with many cases involving extremely large quantities, and with the complicity of both anti-smuggling forces and airline flight attendants.
In June 2023, functional units of the Ministry of Public Security and the Quang Tri Provincial Police investigated and dismantled a massive gold smuggling ring across the border led by Nguyen Thi Hoa (residing in Quang Tri province). Within just one year, the suspects smuggled over 3 tons of gold, worth approximately 5,000 billion VND, from Laos to Vietnam through the Lao Bao border gate (Quang Tri province), selling it to gold shops in Vietnam for illicit profit...
Numerous gold smuggling cases have been uncovered, but this is only the tip of the iceberg. Given the complex developments in the global and domestic gold markets, domestic gold prices have fluctuated sharply, rising rapidly and showing a significant difference compared to international prices. The Prime Minister has issued several decisive directives. The State Bank of Vietnam has also been preparing intervention plans to stabilize the gold market.
It is known that, this April, the State Bank of Vietnam established an inter-agency inspection team to conduct inspections of gold trading activities of enterprises and credit institutions nationwide for the years 2022 and 2023. Hopefully, with the strong actions of the Government and the State Bank of Vietnam, the shortcomings and violations of organizations and individuals will be clarified, rectified, and handled so that the gold market can soon return to normal.
Gold is an extremely sensitive asset, closely linked to exchange rates, interest rates, the money market, foreign exchange, and national financial and monetary security. Therefore, it is necessary to strictly implement the Prime Minister's directive and for the State Bank of Vietnam to urgently review and draft a Decree amending, supplementing, or replacing Decree No. 24/2012/ND-CP to develop a stable, healthy, transparent, efficient, and sustainable gold market, preventing the "goldization" of the economy.
Furthermore, there are anti-monopoly solutions that both manage the gold market and harmonize the interests of all parties. The disparity in gold prices between domestic and international markets needs to be addressed immediately, particularly by preventing smuggling and avoiding profiteering, speculation, manipulation, and price gouging. Relevant agencies should encourage the export of gold jewelry to balance foreign exchange reserves and increase gold reserves to enhance the stability of the gold market...
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