General Secretary: Eliminate monopoly on gold bars, study imposing tax on gold trading

General Secretary To Lam requested to eliminate the state monopoly on gold bars, allow more businesses to produce gold bars, expand controlled imports, and study the application of taxes on gold trading transactions.

On the afternoon of May 28, 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.

General Secretary To Lam delivered a concluding speech at the working session with the Central Policy and Strategy Committee on gold market management.

Concluding the working session, General Secretary To Lam highly appreciated and basically agreed with the content of the report of the Central Policy and Strategy Committee as well as the comments of the delegates at 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.

Accordingly, the General Secretary said that 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 gold smuggling and foreign currency outflows.

There is a monopoly in the market, which does not stimulate competition and promote 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. At the same time, the management method is still mainly traditional, slow to innovate, lacking modern business forms, keeping up with world trends.

Head of the Central Policy and Strategy Committee Tran Luu Quang reports at the meeting

Allow many businesses to produce gold bars

From that, the General Secretary suggested that in the coming time, there should be a strong shift from administrative thinking to disciplined market thinking, from "tightening to control" to "opening to manage". It is necessary to thoroughly grasp and eliminate the thinking 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.

The General Secretary noted that it is necessary to avoid rigid intervention, restrict the movement and promote the advantages of the market, ensure the principle of respecting ownership rights, property rights, and freedom of business of people and enterprises; and ensure transparency in the market.

At the same time, it is necessary to identify people's gold storage as a form of savings and investment as a legitimate need, and it is necessary to respect and approach the construction of appropriate management mechanisms and policies based on this viewpoint.

Regarding tasks and solutions, the General Secretary stated that it is necessary to quickly amend Decree 24 of 2012 of the Government 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.

At the same time, the state monopoly on gold bar brands will be eliminated in a controlled manner, based on the principle that the State still manages gold bar production activities, but can license many qualified enterprises to participate in gold bar production, in order to create an environment of equal competition, thereby helping to diversify supply sources and stabilize prices.

In addition, the General Secretary emphasized the need to expand 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 manufacturing and exporting high-quality gold jewelry, transforming stored gold into products with added value.

General Secretary To Lam requested to study the establishment of a national gold exchange.

Research on establishing a national gold exchange

The General Secretary also requested the development of attractive alternative investment channels to mobilize gold from the population into the economy. Improve the efficiency of management and inter-sectoral coordination, especially in preventing and combating gold smuggling.

According to the General Secretary, it is necessary to maintain macroeconomic stability and confidence in the Vietnamese currency, considering this a fundamental, long-term solution to convert resources from gold into economic development.

Early establishment of information and data system on gold market to increase publicity and transparency, to collect taxes, manage, and assess the impact on foreign exchange gold market, exchange rate, and different investment channels.

The General Secretary also emphasized the need to focus on studying a number of solutions for early and appropriate application with a roadmap. Specifically, research and reference international experience to propose the establishment of a national gold exchange; or allow gold to be traded on commodity exchanges; or establish a gold trading floor in the International Financial Center in Vietnam.

Next, research on applying tax on gold trading transactions to improve market transparency, the ability of management agencies to monitor the market and limit gold trading for speculative purposes. At the same time, research on eliminating export tax 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.

According to Le Hiep (TNO)

Source: https://baogialai.com.vn/tong-bi-thu-xoa-bo-doc-quyen-vang-mieng-nghien-cuu-ap-thue-mua-ban-vang-post325371.html