The State Bank of Vietnam has just issued Official Dispatch No. 345/NHNN-QLNH to the Ministry of Finance and Official Dispatch No. 10035/NHNN-QLNH to the Ministry of Public Security regarding coordination in gold market management.
Specifically, the State Bank requested the Ministry of Finance to strengthen guidance, inspection and supervision of compliance with regulations on the issuance and use of invoices and documents in gold trading activities, especially invoices and documents in the purchase and sale of raw gold and gold bars, and strictly handle acts of issuing and using illegal invoices.
With the Ministry of Public Security, the State Bank also requested that this agency coordinate to limit the situation where some businesses take advantage of high gold prices to speculate, profit, and smuggle gold across the border, causing market disruption.
“ The State Bank requests the Ministry of Public Security to continue to coordinate with the State Bank and relevant ministries and branches in combating, investigating and handling violations of the law on gold trading within the scope of functions, tasks and powers assigned in Decree 24 ,” the document stated.
According to the State Bank of Vietnam, recently, the international gold price has fluctuated sharply due to the impact of complicated geopolitical and diplomatic tensions in the world. The slow recovery of the world economy and the Fed's move to prepare to change the USD interest rate policy have increased the demand for investment in gold. In the country, the price of SJC gold bars has increased sharply due to the impact of the increase in international gold prices and people's psychology when seeing the continuous increase in international gold prices.
Faced with new developments in the gold market, the State Bank has actively implemented solutions according to regulations to stabilize the gold market, proactively developing scenarios and plans to respond to fluctuations in world and domestic gold prices to prepare handling measures.
Previously, the State Bank of Vietnam said that in January 2024, it will report a summary of Decree 24/2012/ND-CP, including proposals to amend and supplement a number of regulations on gold market management to suit the new market context.
According to Deputy Governor Dao Minh Tu, the goal of Decree 24 is to prevent the gold-ization of the economy, without affecting the macro-economy. However, amending Decree 24 is necessary because this Decree was issued 11 years ago, has a certain historical role, but economic and social conditions have also changed.
Regarding the proposal to remove the monopoly of SJC gold bars according to the provisions of Decree 24, the Deputy Governor said that regardless of the variety of gold, the ultimate goal is to stabilize the gold bar market, ensuring the interests of 100 million people. The interests of the group of gold trading enterprises are very small, the State does not protect the price of gold bars, but always respects the people's rights to buy, sell, preserve and store gold.
“ The State does not encourage the trading of gold bars, and does not protect the price of gold bars. However, it is also unacceptable to have such a large price difference between domestic and international gold, between SJC gold and other types of gold bars. All of these issues will be considered in the upcoming amendment of Decree 24. The direction of the amendment to ensure both management and marketability will be implemented by the State Bank in the coming time and will seek public opinions ,” said Deputy Governor Dao Minh Tu.
At the end of 2023, Prime Minister Pham Minh Chinh signed Official Dispatch 1426/CD-TTg dated December 27, 2023 on solutions to manage the gold market.
Accordingly, the Prime Minister requested the State Bank to closely monitor the developments in world and domestic gold prices to promptly implement solutions according to regulations to stabilize the gold market.
Urgently find effective solutions to manage and operate domestic gold bar prices according to market principles, not allowing the gap between domestic and international gold bar prices to be as high as in the past to negatively affect macroeconomic management, and report implementation results in January 2024.
At the same time, strengthen the inspection, examination, control, and strict, comprehensive, focused, and key supervision of the gold market, the activities of gold trading enterprises, stores, agents distributing and trading gold bars, and other entities participating in the market; promptly detect loopholes and shortcomings to proactively, positively, and effectively handle them according to authority and report issues beyond authority, propose appropriate and correct handling measures to competent authorities...
The Prime Minister also assigned the State Bank to make a comprehensive assessment of the domestic gold market situation and state management of the gold market, including the production and trading of gold bars, SJC brand gold, jewelry gold, etc.
Review the legal framework, mechanisms and policies related to the management of the gold market and the trading of gold bars, gold jewelry... and summarize the implementation of Decree No. 24/2012/ND-CP dated April 3, 2012 of the Government on the management of gold trading activities to promptly propose to competent authorities to consider amending and supplementing regulations, ensuring the improvement of the effectiveness and efficiency of state management tools for the gold market, developing a transparent, healthy, effective and sustainable market, to be completed in January 2024.
Although gold prices cooled down quickly after the Prime Minister's telegram and the State Bank's message of readiness to intervene in the gold market, in the first days of 2024, gold prices still fluctuated very erratically, continuously increasing and decreasing sharply during the day despite the world gold price almost standing still.
(Source: Investment Newspaper)
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