Most people buy gold and keep it in the safe to avoid risks.
Sharing at the seminar "Solutions for developing a safe and sustainable gold market" organized by the Government Electronic Information Portal, National Assembly delegate Hoang Van Cuong said that the State is the exclusive agency for producing gold bars and using the SJC gold brand as the national brand. Therefore, people often choose SJC to store and avoid risks.
This creates inequality between 9999 gold, the same quality but SJC is protected so the price is always higher.
In addition, the situation of gold import is not connected in the country, so it does not create a balance between the domestic and world gold markets. Therefore, when the world increases a little, the price of gold in Vietnam increases very high. The difference in domestic and world gold prices leads to smuggling, the higher the profit, the greater the smuggling.
"This will make it impossible to manage the gold market well, causing tax losses, and not creating competition, transparency and equality," Mr. Cuong shared.
From those analyses, Mr. Cuong suggested that it is necessary to change management methods and amend regulations related to this content.
“There is no need for the state to have a monopoly on gold brands. When the gold supply is free and there is equal competition, there will be no more scarcity,” Mr. Cuong analyzed.
Besides, he said that gold is an interconnected and volatile market, so it is necessary to open up tools to connect the domestic and international gold markets, import and export with appropriate methods, not maintain the licensing mechanism, grant quotas in the form of asking - giving, but need to manage with financial tools, ensure balance in gold imports, avoid financial risks.
He also suggested that there should be a method of managing gold trading such as trading on the floor, contracts and gold credits. When opening a trading floor, we should not rely too much on importing a lot of gold, but use derivatives to balance supply and demand.
Stating that Vietnamese people often have a very high sense of precaution and risk prevention, Mr. Cuong pointed out that in reality, people's need to own and buy gold bars is not for jewelry but mainly for storage, risk prevention, and self-protection.
This delegate raised the question: "If we only maintain the physical gold market, buy gold and put it in the cabinet, in the safe, will that money generate profit and circulate or not?"
Therefore, when there is a gold exchange, the mentality will change, instead of buying gold, buying gold certificates, people will feel more secure and more convenient, not worrying about storing gold. Gold will then be on the market and be a commodity circulating on the market.
In addition, Mr. Cuong also said that when using derivatives, selling gold under contracts and gold import futures according to the market, it also ensures a more transparent market, preventing illegal imports and tax evasion.
Gold trading through futures contracts should be allowed.
Vice President of the Vietnam Gold Business Association, Mr. Nguyen The Hung, said that internationally, gold is considered a commodity, including physical gold (bars, pieces, gold coins and jewelry) and non-physical gold (gold accounts and certificates) commonly traded on the market.
Decree 24/2012 on gold trading management only mentions physical gold, SJC gold bars are chosen as the national brand produced by the state and have the exclusive right to trade in gold bars.
According to a survey, in countries around the world, including in large economies, the central bank does not directly manage gold trading activities, because this is a commodity managed by state agencies, such as the Ministry of Industry and Trade in Singapore and Thailand, the State Bank only manages foreign exchange, regulates cash flow, the central bank only coordinates gold as national reserves, ensuring monetary security.
In fact, in Vietnam, gold is considered a means of storage, risk prevention and inflation prevention. Mr. Hung commented that the Vietnamese currency is stable, the exchange rate is stable, so people do not use gold as a means of payment, and there is no longer the concept of goldification.
Therefore, to increase surplus value in business activities, import and export need to reconsider the way to manage the gold market. If gold is considered a commodity, the State Bank will not manage the gold market.
Dr. Tran Tho Dat - Chairman of the Science and Training Council (National Economics University) - said that it is necessary to change the mindset on how to manage the gold market. The regulatory agency needs to research and develop a strategy with the gold market as an organic part of the financial market, closely linked to the financial market, integrated and connected with the world, and inseparable.
Therefore, the amendment of Decree 24/2012 needs to include this content to develop a transparent, effective, safe and stable market.
According to this expert, many countries allow capital mobilization through gold certificates issued by the State - State Bank to ensure safety. The buying and selling of gold certificates must follow strict rules because this is a special type of commodity.
Because gold is not only a means of speculation but also a safe haven asset, a hedge against risks, a large amount of gold, about 400 tons, lies "dead" in residential areas.
Emphasizing that this is a large number, Mr. Dat suggested that the State Bank should mobilize with specific conditions and criteria for the gold market and gold exchanges, through referring to the experience of many countries to allow commodity exchanges to trade gold through futures and options contracts. Participating members must meet strict standards.
“It is necessary to establish a gold trust fund. The fund certificates can be listed on the stock exchange or participate in modern derivative programs, which will help the fund play the role of a stabilization fund, reduce pressure on macro policies, and contribute to a stable macroeconomic environment,” Mr. Dat suggested.
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