The "dancing" gold price situation continues to be of concern to delegates in the National Assembly's agenda on May 23.
Is speculation causing market turmoil?
Discussing the socio-economic situation in the group, delegate Ha Sy Dong (Quang Tri delegation) mentioned the "dancing" of gold prices, which shows the recent instability of the gold market from international to domestic. This has really caused negative and unexpected impacts on the foreign exchange market and the USD/VND exchange rate.
“The world and domestic gold prices have both increased sharply since the beginning of 2024, reaching an all-time peak, when demand increased dramatically mainly due to geopolitical risks and can be partly assessed as being due to speculative activities in this chaotic context?”, the delegate asked.
Delegates said that in the past 2 years, the domestic gold price has always been 15-20 million VND/tael higher than the converted international gold price. This has made the domestic gold market more sensitive, stimulating speculation and smuggling, strongly affecting the free exchange rate and indirectly putting pressure on the official exchange rate.
"What many people are wondering is who is really causing the sudden increase in demand for gold in the country and why?", the delegate asked, saying that it certainly does not come from the majority of ordinary people.
"Is this mainly due to a group of interests with illegal acts such as asset dispersion and speculation causing market disruption?", Mr. Dong continued to question and suggested that if that is true, there must be a fundamental solution.
However, Mr. Dong said that, according to his own observations in many forums, "he has not found an answer to this question yet".
Many businesses have temporarily closed.
At the conference hall discussion on the results of monitoring the settlement of voters' petitions sent to the 6th session, Tay Ninh province delegate Tran Huu Hau reiterated some voters' opinions on gold management, production and trading.
Among them, there are some specific problems from businesses and have led to the phenomenon that many businesses have temporarily closed.
Mr. Hau said that on April 25, Tay Ninh Business Association organized a dialogue between gold trading enterprises and relevant management agencies. From there, Tay Ninh Business Association compiled and sent a number of recommendations to the Tay Ninh National Assembly Delegation.
Specifically, the biggest difficulty for gold trading enterprises today is proving the origin and provenance of goods to the authorities. Meanwhile, the majority of gold trading enterprises are private enterprises that have converted from individual business households, i.e. gold and silver shops, to enterprises according to the requirements of the State Management Department. Therefore, the assets, goods, and business capital are still unclear.
“For example, family gold, sometimes passed down from many generations, is put into business without being recorded in capital, and is not declared when registering to establish a business,” the delegate cited.
In addition, the purchase of gold from people to sell is a habit, so businesses do not declare information. On the other hand, people are also reluctant to provide personal information.
Therefore, to facilitate buying and selling, businesses do not collect information and do not declare it.
In addition, gold purchased from many people is melted together by businesses, now it is impossible to clearly identify the source of the gold.
The reality is that many businesses still operate according to the habits of household businesses, not following accounting standards properly, leading to discrepancies between books and reality, making it difficult for the State to inspect and manage...
From that situation, gold trading enterprises proposed to allow enterprises to self-declare inventory goods according to a time specified by the State.
This declaration is considered the basis for determining the origin of existing gold. After that time, all imported and exported goods must be properly and fully implemented by the enterprise with related management regulations.
If the State allows this, it will solve the current difficulties and problems of businesses and management agencies in handling gold of unknown origin.
This will also help the state to count the amount of gold that businesses currently hold and put into business, which is an important database serving the state management of currency and macroeconomic management.
Explaining later, State Bank Governor Nguyen Thi Hong said that these are recommendations related to many ministries and branches, so she asked for permission for the State Bank and ministries and branches to research.
Chairman of the Economic Committee Vu Hong Thanh (Quang Ninh delegation) is worried that the gold market's developments will affect the macro economy, while Decree 24 has not been amended yet, despite being mentioned many times.
Therefore, he said, the Economic Committee is expected to hold an explanation session related to gold market management.
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Source: https://vietnamnet.vn/nhu-cau-mua-vang-tang-dot-bien-tu-ai-chac-khong-phai-nguoi-dan-thuong-2283764.html
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