Should more businesses be allowed to import gold?

Recently, the State Bank has issued many directives to stabilize the gold market. These efforts have brought about many positive results, the most notable of which is that the price of SJC gold is approaching the world gold price. However, the scarcity is becoming more and more serious, which requires comprehensive measures. According to experts, one of them is to allow more businesses to import gold.

State Bank's efforts to stabilize the gold market are effective

On November 11, State Bank Governor Nguyen Thi Hong answered questions before the National Assembly. State management of the gold market was the issue that most delegates were most concerned about.

Delegate Luu Van Duc, National Assembly Delegation of Dak Lak province, asked the Governor to inform how the State Bank has implemented Notice No. 160 on the Prime Minister's conclusion at the meeting to discuss solutions to manage the gold market?

Responding to delegate Luu Van Duc, Governor of the State Bank Nguyen Thi Hong provided information that from 2014 to 2019, the Vietnamese gold market was relatively stable and people's demand for gold decreased. However, from 2021, the world gold price increased, accordingly, the domestic gold price also increased.

However, from 2021 to June 2024, the State Bank has not intervened in the market. From June 2024, the world gold price reached its peak, the difference between the world and domestic gold prices increased, so the Government and the State Bank have directed strongly.

The proposed measure was to organize an auction with 9 sessions conducted. After that, the State Bank switched to the plan of selling SJC gold directly through 4 State-owned commercial banks.

“ Therefore, the difference between domestic and international gold prices from about 15-18 million VND/tael to now only about 3-4 million VND/tael ,” said Governor Nguyen Thi Hong.

Should more businesses be allowed to import gold?

Gold market is still scarce

Thus, it can be seen that one of the biggest instabilities of the market has been resolved. However, Dr. Nguyen Tri Hieu - a banking and finance expert - commented: "This achievement is only 50%, the remaining 50% is not achieved because there is no supply".

Mr. Hieu explained that in the past, the difference between domestic and international gold prices sometimes exceeded 20 million VND/tael. Currently, this difference is only 3-4 million VND/tael. But the problem is that those who want to buy cannot buy or buy in small quantities, limited. People's demand is very large but the market cannot meet it, so this is only a 50% achievement.

In October, many people reported that it was almost impossible to buy gold bars from banks and Saigon Jewelry Company Limited (SJC). At some other locations, customers were only allowed to buy a limited quantity. To be able to trade, people had to go to the “black market”, which was fraught with risks.

Mr. Lam Tu (Hanoi) said that more than 2 months ago, he bought 10 taels of gold. After that, buying and selling was very difficult, so he followed the advice of his friends and joined groups about gold exchange.

According to Mr. Tu, the group he joined was very active, with quite a large number of buy and sell orders, mainly sell orders. However, even though he had joined the group for a long time, he still did not dare to buy because he was worried about it being “illegal” and the goods being of poor quality.

“ I feel completely secure when buying gold in big stores. But when buying online, how do I know it’s real gold? What if scammers take advantage of the shortage to sell fake goods? ” Mr. Tu worried.

Import gold to increase supply

To solve the shortage in the gold market, Dr. Nguyen Tri Hieu said that it is necessary to find ways to increase supply.

Mr. Hieu supports the view that allowing businesses to import gold when it brings benefits to consumers and stabilizes the market, but it must also be based on scientific grounds to avoid affecting exchange rates and foreign exchange. When the supply is abundant, customers are the ones who benefit the most because the supply is enough to meet demand, so they do not have to trade on the "black market" which has many potential risks such as poor quality goods.

To import gold, Dr. Hieu “suggested”, the State Bank must calculate the amount of foreign exchange. On that basis, the State Bank assigns quotas to gold traders, allowing them to import according to the quota set by the State Bank. This has been done in the past.

Also at the question-and-answer session held on November 11, pointing out that gold prices continue to be complicated and unpredictable, Governor Nguyen Thi Hong said that our country does not produce gold, so intervention depends entirely on international gold imports. Therefore, the State Bank will closely monitor market developments to come up with appropriate policies to stabilize the gold market.

Source: https://congthuong.vn/co-nen-cho-phep-nhieu-doanh-nghiep-nhap-khau-vang-358272.html