Creating a more effective connection between domestic and international gold markets

General Secretary To Lam proposed expanding controlled import rights to increase gold supply, contributing to reducing the gap between domestic and world gold prices, and at the same time limiting gold smuggling across the border.

General Secretary To Lam speaks

On the afternoon of May 28, in Hanoi , General Secretary To Lam had a working session with the Central Policy and Strategy Committee on mechanisms and policies to effectively manage the gold market in the coming time.

Also attending the meeting were comrade Tran Cam Tu, Politburo member, Standing member of the Secretariat; comrades of the Politburo: Nguyen Duy Ngoc, Secretary of the Party Central Committee, Chairman of the Central Inspection Committee ; Nguyen Xuan Thang, Director of the Ho Chi Minh National Academy of Politics, Chairman of the Central Theoretical Council; comrades of the Party Central Committee Secretariat: Le Hoai Trung, Chief of the Party Central Committee Office; Tran Luu Quang, Head of the Central Committee's Policy and Strategy Committee; comrade Ho Duc Phoc, member of the Party Central Committee, Deputy Prime Minister; comrades of the Party Central Committee, leaders of central departments, ministries, branches and agencies.

Shifting from “tightening to control” to “opening to govern”

At the working session, comrade Tran Luu Quang, Secretary of the Party Central Committee, Head of the Central Policy and Strategy Committee, presented a report assessing and proposing mechanisms and policies to effectively manage the gold market in the coming time.

Head of the Central Policy and Strategy Committee Tran Luu Quang affirmed the viewpoint of managing the gold market according to market principles, with appropriate management by the State; eliminating the mindset of banning if it cannot be managed; respecting ownership rights, property rights, and freedom of business; ensuring transparency in the market.

Regarding specific mechanisms and policies, the Central Policy and Strategy Committee proposed two groups of solutions: Solutions that need to be prioritized for immediate implementation and solutions that need to be researched for application or pilot application. The solutions need to be implemented step by step, with a clear roadmap and adjusted to suit reality. The most important thing is to build people's trust in the financial system and state policies, contributing to bringing gold resources to serve economic development.

At the meeting, delegates discussed and proposed a number of solutions to improve the efficiency of management and development of the gold market in our country in the coming time; made a number of recommendations and proposals to innovate the mechanism and policies for gold market management.

Concluding the meeting, General Secretary To Lam basically agreed with the content of the report of the Central Policy and Strategy Committee; highly appreciated the frank, enthusiastic and useful contributions of the delegates attending the meeting.

The General Secretary emphasized that the mechanisms and policies for managing the gold market in Vietnam in recent years have been positively adjusted and improved. However, it is also necessary to frankly acknowledge that the mechanisms and policies for managing and regulating the gold market have been slow to be renewed, have not kept up with the development of the market and the demands of reality, and need to be urgently renewed and improved, as stated in the Report of the Central Policy and Strategy Committee.

Working scene

The gold market is poorly managed, not in line with the general supply and demand developments in the world market, causing consequences for the economy, especially the situation of gold smuggling and foreign currency outflows. There is a monopoly in the market, not stimulating competition and promoting healthy gold trading activities. Management mechanisms and policies have not created the motivation to mobilize idle resources among the people for socio-economic development, people invest a lot in gold. Management methods are still mainly traditional, slow to innovate, lacking modern business forms, keeping up with world trends.

Regarding the viewpoints, goals, tasks and solutions for the coming time, the General Secretary requested a strong shift from administrative thinking to disciplined market thinking, from "tightening to control" to "opening to govern"; it is imperative to thoroughly grasp and eliminate the mindset of "if you can't manage, then ban"; at the same time, it is necessary to make the gold market operate in accordance with market principles, with state management; avoid rigid intervention, restricting the movement and promoting the advantages of the market, ensuring the principle of respecting ownership rights, property rights, and freedom of business of people and enterprises; ensuring transparency in the market; it is necessary to identify people's gold storage as a form of savings and investment, a legitimate need, which needs to be respected and approached to build appropriate management mechanisms and policies on the basis of this viewpoint.

Eliminate the State monopoly on gold bar brands in a controlled manner

Regarding tasks and solutions, the General Secretary stated that the legal framework must be perfected, Decree 24/2012/ND-CP must be quickly amended in the direction of marketization with a roadmap and strict control; creating a more effective connection between the domestic gold market and the international market. The State monopoly on gold bar brands must be eliminated in a controlled manner, based on the principle that the State still manages the production of gold bars, but can license many qualified enterprises to participate in the production of gold bars in order to create an environment of equal competition, thereby helping to diversify supply sources and stabilize prices.

The General Secretary proposed expanding controlled import rights to increase gold supply, contributing to reducing the gap between domestic and world gold prices, and at the same time limiting gold smuggling across the border.

Encourage the development of the domestic gold jewelry market to gradually turn Vietnam into a center for the production and export of high-quality gold jewelry, transforming stored gold into value-added products. Develop attractive alternative investment channels to mobilize gold from the population into the economy. Improve the effectiveness of management and inter-sectoral coordination, especially in preventing gold smuggling.

Promote the role of the Gold Business Association, act as a bridge between gold businesses and management agencies, promptly reflect difficulties, make recommendations and coordinate the implementation of market stabilization measures when necessary.

The General Secretary emphasized that maintaining macroeconomic stability and confidence in the Vietnamese currency is a fundamental, long-term solution to converting resources from gold into economic development. Early establishment of an information and data system on the gold market to increase publicity and transparency, to collect taxes, manage, and assess the impact on the foreign exchange gold market, exchange rates, and various investment channels.

The General Secretary pointed out that it is necessary to focus on studying a number of solutions for early and appropriate application with a roadmap: Study and refer to international experience to propose the establishment of a National Gold Exchange; or allow gold to be traded on the Commodity Exchange; or establish a Gold Exchange in the International Financial Center in Vietnam; study and apply taxes on gold trading transactions to enhance market transparency, the ability of management agencies to monitor the market and limit gold trading for speculative purposes; study and eliminate export taxes on gold jewelry to encourage the development of production and export of gold jewelry in Vietnam.

The General Secretary assigned the State Bank Party Committee to preside over and coordinate with the Central Policy and Strategy Committee and relevant agencies to report and make specific proposals.

At the meeting, expressing his gratitude for the profound and specific guidance of General Secretary To Lam and the opinions exchanged by leaders of ministries, departments and branches, Head of the Central Policy and Strategy Committee Tran Luu Quang affirmed that the Central Policy and Strategy Committee will seriously, fully and comprehensively absorb the opinions at today's meeting to carry out the Committee's specific tasks.

VN (according to VNA)

Source: https://baohaiduong.vn/tao-su-ket-noi-hieu-qua-hon-giua-thi-truong-va-quoc-te-412660.html