According to the investigation conclusion of the smuggling and tax evasion case that occurred at Lao Bao border gate (Quang Tri), Phu Quy Gold and Silver Company and related units, some gold shop owners in Hanoi contacted the gold smuggling "boss" Nguyen Thi Hoa to order gold from Laos to illegally transport to Vietnam for consumption.

In May-June 2023, defendant Tran Anh Son, manager of Minh Hung gold shop, contacted Ms. Hoa to order 128 kg of smuggled gold from Laos with a total value of more than 188 billion VND. After purchasing gold from the "boss lady", Mr. Son divided the gold to increase the quantity and quality of gold and then resold the gold to Phu Quy Gold Company and a number of units and individual customers.

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Defendant Dam Anh Tuan, owner of Tuan Quang gold shop, bought 10 kg of smuggled gold from Ms. Hoa for 5,255,000 VND/tael, with an agreement to deliver the goods in Hanoi. In addition to the 10 kg of smuggled gold mentioned above, Mr. Tuan also bought gold from Ms. Hoa several times but there are no documents or evidence to prove each transaction.

Mr. Nguyen Khac Bong also ordered gold from Ms. Hoa many times. Around May 25 and 26, 2022, the defendant called Ms. Hoa via Zalo or Viber and said: "This side is doing well, get me a dozen, the goods from the other side are nice." The two sides agreed on 10 kg of gold at a price of more than 5.3 million VND/tael; exchange rate 23,880 VND/USD.

Recommendations of the Investigation Agency

Clause 3, Article 4; Clause 1, Article 14 and Clause 3, Article 16 of Decree 24/2012/ND-CP dated April 3, 2012 of the Government stipulate: "The State Bank has the exclusive right to import raw gold (gold blocks, bars, grains) to produce gold bars; organize, manage and produce gold bars".

From 2012 to present, the State Bank has only granted licenses to import raw gold for re-export of products to 11 gold trading enterprises that have contracts to process gold jewelry and fine arts with foreign countries and licenses to import raw gold for production/processing gold jewelry and fine arts for 20 foreign-invested enterprises.

The State Bank does not grant licenses to import raw gold for the production of gold jewelry and fine arts to enterprises that are granted certificates of eligibility to produce gold jewelry and fine arts and enterprises investing abroad in the field of gold mining; and does not grant licenses to any organization or individual to produce gold bars.

After completing the investigation of the case, the Ministry of Public Security's Investigation Agency recommended that the State Bank urgently advise the Government to amend Decree 24/2012/ND-CP in the direction of granting licenses to qualified enterprises to import, produce and trade raw gold, ensuring gold supply to the market.

At the same time, strengthen management and supervision measures, improve effectiveness and efficiency in management to meet people's gold needs; prevent speculation and smuggling activities.

The Investigation Agency also recommended that the gold market management agency strengthen inspection, examination and control of gold bar and jewelry trading activities; monitor the gold market, domestic gold trading establishments, and manage the origin of gold sold at gold shops.

At the same time, handle illegal gold trading establishments without clear sources; ensure transparent gold trading activities in accordance with regulations; effectively prevent speculation and smuggling activities and meet people's gold needs.

Recommend that tax authorities strengthen inspection and examination of compliance with legal regulations in gold trading of all kinds without invoices or documents; issue and use of fake invoices and documents in gold trading activities.

Especially invoices and documents in the trading of raw gold and gold bars. At the same time, strictly handle the acts of issuing and using illegal invoices to legalize smuggled gold and gold of unknown origin.

In this case, the defendants also took advantage of the policy - border residents only need to use their citizen identification card or ID card to be able to pass through the border gate to transport gold in a sophisticated manner.

Therefore, the Investigation Agency recommends that the Customs Department and the Border Guard Command direct customs forces and border guards at road border gates, especially areas with many trails and openings, to strengthen inspection, control, and supervision of registration and management of people and vehicles of border residents who regularly cross the border gates, including personal vehicles; promptly detect and effectively prevent smuggling and trade fraud.