Abolishing the monopoly on gold bar production: Expectations for transparency and stabilization of the gold market

(HTV) - The Government has just issued Decree 232, officially abolishing the monopoly mechanism on gold bar production after 13 years. The new regulation is expected to help the gold market become more transparent, competitive and closer to world gold prices.

Gold market changes after 13 years of monopoly

Under the revised Decree 232, the State will no longer have a monopoly on gold bar production. Instead, qualified businesses and banks will be granted production licenses.

This opens up opportunities for many gold bar brands to reappear alongside SJC, creating a healthy competitive environment. Many experts consider this an important turning point to help the gold market become more transparent, clear and connected with the international market.

Customers transact at a gold shop in Ho Chi Minh City.

Dr. Chau Dinh Linh - lecturer at Banking University of Ho Chi Minh City commented: "This is a breakthrough step, breaking the monopoly, returning the market but still having control, creating favorable conditions for many participants."

Dr. Chau Dinh Linh - lecturer at Banking University of Ho Chi Minh City

Expectations of narrowing the gap between domestic and world gold prices

Currently, there are 38 businesses and banks licensed to trade in gold bars. However, to be allowed to produce, businesses must have a charter capital of VND1,000 billion and credit institutions must have a charter capital of VND50,000 billion.

People crowded a gold shop in Ho Chi Minh City to buy gold, in the context of strong fluctuations in domestic gold prices.

Associate Professor Dr. Nguyen Huu Huan (Ho Chi Minh City University of Economics ) said: "Eliminating the monopoly mechanism will help gold prices become more competitive, bringing SJC gold prices closer to those of other brands, contributing to narrowing the gap with the world."

However, the gold market cannot cool down immediately. On the morning of August 27, the price of SJC gold bars still jumped to 126-128 million VND/tael. According to experts, to reduce the difference, in addition to eliminating the monopoly, Vietnam needs to supplement the supply, even allowing the import of gold bars.

Dr. Can Van Luc emphasized: "It is necessary to increase supply soon by allowing the import of gold bars, balancing demand and foreign exchange reserves."

Dr. Can Van Luc - economic expert

Roadmap to transparency of the gold market

People line up at a gold shop in Ho Chi Minh City.

Experts say that eliminating the monopoly is just the beginning. To stabilize the market and bring it closer to international standards, the Government is aiming to build a gold trading floor.

Associate Professor, Dr. Nguyen Huu Huan analyzed: "The trading floor will help publicize information and increase liquidity. When connected with the world market, domestic gold prices will approach international gold prices."

Meanwhile, Dr. Chau Dinh Linh hopes: "This roadmap will contribute to making the gold market more transparent."

Gold bars and plain rings are displayed for sale at a gold shop.

Gold liberalization – a test of macroeconomic management capacity

Liberalizing the gold market is not only an economic issue, but also a measure of macroeconomic management capacity. Decree 232 is seen as the key to calming the gold rush, while affirming the commitment to transparency and market stability in the long term.

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Source: https://htv.com.vn/xoa-bo-doc-quyen-san-xuat-vang-mieng-ky-vong-minh-bach-va-binh-on-thi-truong-vang-222250828110206971.htm