Amending Decree 24 should consider opening a gold exchange and trading gold accounts.

Experts point out the points that need to be removed and amended in Decree 24 to manage and operate the gold market more effectively. Illustration photo: LDO

Open gold exchange to create a centralized, transparent market

Faced with the unusual developments of gold prices and the gold market in recent times, authorities have applied many measures to stabilize gold prices.

However, according to experts, the current important long-term solution is to amend Decree 24 to manage and operate the gold market. According to Associate Professor, Dr. Ngo Tri Long - former Director of the Institute for Price Market Research ( Ministry of Finance ), the long-term solution is to urgently amend Decree 24, because Decree 24 currently has many shortcomings.

The expert said that Decree 24 mainly talks about physical gold including gold bars, jewelry gold and raw gold, not about gold accounts or gold certificates. Or in other words, "paper gold". "Paper gold" is gold purchased on account, traded through gold exchanges and not physical gold.

However, in Vietnam there is currently no gold exchange. Therefore, according to Associate Professor Dr. Ngo Tri Long, in amending Decree 24, it is necessary to consider opening a gold exchange.

The expert analyzed: “Currently, in Vietnam, there is no centralized market, no centralized gold trading place. Therefore, price transparency is not clear, and there are many small retail stores, showing fragmentation, with many independent sales segments, so the market is not transparent. An opaque market will easily lead to price manipulation, speculation, etc. Therefore, I think that opening a gold exchange is necessary to create a centralized, transparent market.”

In addition, according to Associate Professor Dr. Ngo Tri Long, one of the tools to manage the market in the current context, in addition to economic measures, it is necessary to apply administrative measures such as inspection and examination. The State must conduct strict and rigorous inspection, examination and supervision of gold and silver trading stores to bring the market into stable operation.

Prof. Dr. Tran Tho Dat - Chairman of the Science and Training Council, National Economics University, said that in the context of many unpredictable economic fluctuations, gold will certainly still be a favorite investment asset, requiring management for this market to operate effectively. He said that referring to the experience of other countries to allow gold to be traded on futures exchanges like other commodities, on the condition that participating members meet appropriate standards. If there are non-physical gold trading tools, the pressure on the physical gold market will no longer exist.

4 points to be resolved in Decree 24

Regarding the management of the gold market, Dr. Can Van Luc - an economic expert also said that it is necessary to control the story of smuggling and trading in fake gold. This is basically what the management agencies have done in the past, but need to pay more attention in the coming time.

“When we manage the gold market better, the gold price will be closer to the world price, the phenomenon of gold smuggling will decrease, thereby contributing to increasing the amount of foreign currency, attracting foreign currency from the people and businesses. Not reducing it, but even increasing foreign exchange reserves through that method.”

Regarding the amendment of Decree 24, Dr. Can Van Luc said that the Government, the State Bank, management agencies and experts have discussed a lot in the past time about the need to soon amend Decree 24.

For the current gold market, the amendment of Decree 24, the expert said, needs to focus on the following groups of solutions.

Firstly, it is necessary to allow an increase in the supply of gold to meet the needs of people and families in Vietnam. By allowing a number of qualified businesses to meet the criteria to be able to import gold into Vietnam.

Second, the exclusive national brand SJC must be eliminated.

Third, it is necessary to strengthen coordination between the State Bank and various agencies and ministries to inspect, evaluate and monitor the market, ensuring more publicity, transparency and effective operation.

Fourth, it is necessary to strengthen international cooperation, both to combat gold smuggling and to ensure supply and demand so that the gold market can be better connected in the future.

"I think, if we can resolve these four points, Decree 24 will basically meet the requirements for operating and managing the gold market better in the coming time. And I believe there will be very good support for macroeconomic stability in general, including the foreign exchange sector in particular," the expert affirmed.

Source: https://laodong.vn/kinh-doanh/sua-nghi-dinh-24-nen-xem-xet-mo-san-vang-giao-dich-vang-tai-khoan-1353401.ldo