New thinking in gold market management

At a meeting with the Central Policy and Strategy Committee on May 28, General Secretary To Lam requested a fundamental change in the mindset of managing the gold market. Management is for development, not tightening for control; the market's self-regulating capacity must not be stifled, and the mindset of "if you can't manage, ban" must not be maintained.

In recent times, the management and regulation mechanism of the gold market in Vietnam has been slow to innovate and has not kept up with the development of the market. The main reason is that the management mindset is still heavily administrative, mechanical intervention, inflexible and does not encourage competition. The lack of a clear legal framework to manage and mobilize gold resources among the people has caused the economy to miss out on a valuable source of capital.

The General Secretary stated that the urgent requirement is to shift from a hard control mindset to a soft management mindset; to make the gold market operate in accordance with market principles, with State management. The core is to respect the property rights and freedom of business of the people and enterprises...

On that basis, the General Secretary pointed out key solutions to restructure and develop the gold market. Specifically, perfecting the legal framework, amending Decree 24/2012/ND-CP towards marketization with a roadmap and strict control; diversifying supply sources, ending monopoly; building a flexible gold market stabilization mechanism, expanding controlled imports; perfecting the data system and market monitoring, ensuring complete and accurate information; recognizing people's gold hoarding as a legitimate form of savings and investment; improving the State Bank's management and risk management capacity...

These are fundamental strategic directions to build a healthy, stable gold market, linked to the macro management goals. More importantly, it is a necessary step to improve the thinking of managing the market economy in a modern, effective and international standard direction.

In order for the above solutions to be put into practice soon, it requires the synchronous movement of the subjects in the gold market ecosystem. First of all, the management agency needs to urgently complete the institution, issue a clear and transparent legal framework for the gold market, in which the principles of respecting ownership rights, property rights and freedom of business are ensured; strengthen supervision and strictly handle acts of speculation, monopolization and price manipulation.

As a direct coordinating agency, the State Bank needs to gradually diversify the entities that are allowed to produce and trade gold bars; expand the distribution system to ensure equal access. In addition, the authorities need to soon build a comprehensive gold market database to serve flexible and accurate management; research and issue financial products associated with gold, in order to attract gold resources from the people.

On the side of gold trading enterprises, it is necessary to transform the business model towards openness, transparency, healthy competition, and full compliance with market standards.

Finally, people - as legal owners of gold - need to be guaranteed full rights and access to fair policies. Along with that, people need to change their perception from hoarding mentality to legal and effective investment.

Only when all parties act together can the gold market truly operate in a transparent and effective manner and become an important resource mobilization channel to serve the goal of high economic growth in the coming time.

Source: https://hanoimoi.vn/tu-duy-moi-trong-quan-ly-thi-truong-vang-703957.html