People take a number to buy SJC gold bars at Agribank branch.
Reporter: Sir, today is the third day that 4 State Commercial Banks and SJC Company have sold SJC gold bars directly to people according to the new plan of the State Bank of Vietnam. So what do you think about this plan of the State Bank of Vietnam?
Dr. Can Van Luc: First of all, the fact that the State Bank of Vietnam allowed 4 State Commercial Banks and SJC to buy gold to sell to people clearly contributed significantly to reducing the selling price of gold in the recent past for 3 main reasons:
Firstly, the floor price set by the State Bank of Vietnam is relatively reasonable because it is only slightly higher than the world price plus costs. This will pull the entire price level down to a more suitable level in recent days.
Second, it eliminates the middleman, meaning that all of the gold is sold directly to the people or those in need.
Third, it ensures much more transparency because it requires payment invoices and transfers that exceed 400 million VND and must report the source of the money and the purpose of use. I think this contributes to greater transparency, especially what the purchase is for, how...
In my opinion, in the next few days, gold prices will continue to decrease and will be closer to the world price, of course it also depends a lot on external factors, that is, how the world price will develop.
Reporter: In fact, in the past two days, we have seen a lot of people buying gold, and the demand for gold is still high. What do you think about this situation?
Dr. Can Van Luc: In recent days, it is true that people have lined up in large numbers, many people want to buy many times. However, we should remember that the management agency is the State Bank of Vietnam, which has a regulating valve. That is, if there is a lot of buying and selling, of course, there will be a declaration, clearly declaring the source of money, origin, etc., thereby adding barriers for buyers before considering buying again.
Furthermore, it may be temporarily bustling for the first few days, then when the domestic gold price is close to the world price, the market will be less "hot", because at that time, organizations and speculators will no longer have the motivation to continue speculating and hoarding.
I hope that in the next few weeks the market will stabilize soon, and the domestic gold price will be closer to the world price.
BIDV Chief Economist, Dr. Can Van Luc.
Reporter: So, in your opinion, should we maintain this measure long-term?
Dr. Can Van Luc: I think this is still a temporary solution to solve immediate problems according to the request of the Government and the State Bank of Vietnam to stabilize the market soon. In the long term, I recommend doing 3 things:
One is to continue to increase the supply to the market by allowing some qualified businesses and organizations to import. I think, our Vietnam needs about 55 tons of gold per year (according to statistics from the World Gold Council), which is not too much, somewhere equivalent to more than 3 billion USD.
Second, remove the monopoly element, here the monopoly on production, monopoly on import of gold bars of the State Bank of Vietnam as well as the monopoly of SJC. We have been implementing this for a long time according to Decree 24/2012/ND-CP on management of gold trading activities; and I think Decree 24 has basically completed its mission. We need to soon consider amending the Decree in the direction of removing the monopoly element, and assigning more specific roles and functions, especially the coordination between ministries and branches to better regulate and manage the gold market.
Third, localize for management, in my opinion, for gold jewelry and handicrafts, the market should be self-regulated. As for gold bars, because they are linked to foreign currency, they need to be managed appropriately. I think that the Government and the State Bank of Vietnam have clearly identified this issue and will certainly regulate and stabilize the market in the coming time.
Reporter: Thank you very much!
Source
Comment (0)