At the regular Government meeting for April 2025 held on the morning of May 6, the issue of amending Decree No. 24/2012/ND-CP continued to be emphasized by Prime Minister Pham Minh Chinh and required relevant agencies to urgently complete it.
First, we need to look back at the context of the gold market at the time Decree No. 24/2012/ND-CP was issued. At that time, the domestic gold market had many problems, causing difficulties in managing monetary policy. The Decree was issued with the goal of tightening the management of gold trading activities, controlling supply and demand, stabilizing the market and greatly supporting the stability and safety of the national financial system. Decree No. 24/2012/ND-CP was successful in preventing and ending the gold-ization.
Gold is “separated” from macroeconomic activities and variables, ensuring the stability and safety of the national financial system. Vietnam’s foreign exchange reserves were often in deficit before 2012, but after Decree No. 24/2012/ND-CP, they have been continuously supplemented and increased. The exclusive mechanism for gold bar production through the State Bank of Vietnam (SBV) and the SJC brand is expected to create a centralized management framework, limiting speculation.
However, after more than a decade of implementation, the shortcomings of the management mechanism under Decree No. 24/2012/ND-CP have been clearly revealed. Firstly, the monopoly of gold bar brands has caused the market to lack competition, leading to the gap between domestic and international gold prices remaining at an unusually high level, causing direct damage to people - especially those who need to store gold to preserve their assets in the context of economic instability.
Second, the monopoly model makes the supply inflexible. When demand increases suddenly, the State Bank cannot respond promptly to add gold to the market, causing local "price fever" waves, affecting social psychology and macroeconomic stability. Third, currently, only SJC gold bars are officially recognized, while other types of gold are not convertible, reducing liquidity and distorting the real value of gold in the market.
From a legal and policy perspective, the amendment of Decree No. 24/2012/ND-CP is necessary and should be implemented in the direction of expanding the market, creating a healthy and transparent competitive environment. In my opinion, it is necessary to end the monopoly mechanism of gold bar production, allowing qualified enterprises to participate in the production and trading of gold bars under the licensing and strict supervision of the State Bank; establish unified technical standards and quality standards for gold bars, to ensure the ability to convert between brands; strengthen propaganda and equip financial knowledge, helping people understand the benefits of converting gold into currency for reinvestment; improve the State Bank's market regulation capacity, allowing proactive intervention in the supply and demand of raw gold in accordance with market fluctuations. At the same time, avoid the phenomenon of management agencies performing business and production functions gold bar
In fact, the shortcomings in the current management mechanism not only make it difficult to control the gold market but also lead to serious consequences for the macro economy. The trend of people hoarding gold on a large scale has posed many risks. First of all, gold is not a popular means of payment in the modern economy, the flow of money into gold will reduce the amount of money in circulation, reduce purchasing power and limit capital for production and business, thereby negatively affecting economic growth.
In addition, the large gap between domestic and international gold prices can facilitate smuggling, making it difficult to manage foreign exchange, increasing pressure on the exchange rate and national foreign exchange reserves. More seriously, the shift of assets to gold reflects a decline in confidence in the domestic currency and the economy, creating a chain effect on the financial market, banking system and investment environment.
The amendment of Decree No. 24/2012/ND-CP should aim at effective management and encouragement to mobilize resources from gold for production and business, contributing to the development of the country. Effective management of the gold market is not simply regulating a precious metal but is also an essential factor in stabilizing the macro economy, ensuring financial and monetary security and strengthening confidence in the State's management policies.
Source: https://baolangson.vn/sua-doi-nghi-dinh-so-24-2012-nd-cp-de-giu-on-dinh-thi-truong-vang-5047347.html
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