General Secretary: Eliminate state monopoly on gold bar brands

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

In the 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.

Along with that, we need to eliminate the mindset of banning if we can't manage it; respect ownership rights, property rights, and freedom of business; and ensure transparency in the market.

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

General Secretary To Lam emphasized that the mechanisms and policies for managing the gold market in Vietnam have been adjusted and improved in recent years. However, it is necessary to frankly acknowledge that the mechanisms and policies for managing and regulating the gold market have been slow to be renewed and have not kept up with the development of the market.

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 outflow. There is a monopoly situation 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.

The General Secretary clearly stated his viewpoint, strongly shifting from administrative thinking to disciplined market thinking, from "tightening to control" to "opening to govern"; it is imperative to thoroughly grasp and eliminate the thinking of "if you can't manage, then ban".

At the same time, the gold market must operate in accordance with market principles and under state management.

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; ensure transparency in the market.

General Secretary To Lam speaks. Photo: Central Policy and Strategy Committee

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

Deploying the establishment of the National Gold Exchange

Regarding tasks and solutions, the General Secretary proposed to complete the legal framework, quickly amend Decree 24/2012 of the Government towards marketization with a roadmap and strict control; creating a more effective connection between the domestic gold market and the international market.

The General Secretary said that it is necessary to eliminate the state monopoly on gold bar brands in a controlled manner on the principle that the state still manages gold bar production activities, but can license many qualified enterprises to participate in gold bar production. This is to create an environment of equal competition, thereby helping to diversify supply sources and stabilize prices.

In addition, the General Secretary also noted 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.

Along with that is to 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.

Emphasizing the development of attractive alternative investment channels to mobilize gold from the population into the economy, the General Secretary noted the need to improve management efficiency and inter-sectoral coordination, especially in preventing and combating gold smuggling.

At the same time, 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 also noted that maintaining macroeconomic stability and confidence in the Vietnamese currency is a fundamental, long-term solution to converting resources from gold into economic development. In addition, it is necessary to soon build 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 requested research and reference to international experience to propose the establishment of a National Gold Exchange or to allow gold to be traded on the Commodity Exchange; or to establish a Gold Exchange in the International Financial Center in Vietnam.

At the same time, research and apply taxes on gold trading transactions to improve market transparency, the ability of management agencies to monitor the market and limit gold trading for speculative purposes; research to eliminate 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.

Source: https://baonghean.vn/tong-bi-thu-xoa-bo-the-doc-quyen-nha-nuoc-ve-thuong-hieu-vang-mieng-10298449.html