Gov’t to renew regulations on gold market management

In an official dispatch issued on May 13, the Government chief tasked the SBV to closely monitor, take measures to stabilize the gold market.  

Pham also underlined the importance of developing a safe, healthy, effective and sustainable gold market and not allowing gold price fluctuations to affect the stability and safety of the financial and monetary markets, to stabilize the macro economy, control inflation, and promote economic growth and social psychology.

The central bank was requested to closely monitor the developments in world and domestic gold prices, promptly implement solutions according to regulations when necessary to stabilize the gold market; avoid negative impacts on exchange rates, interest rates, the money and foreign exchange markets, and national financial and monetary safety and security.

The SBV takes the prime responsibility for inspecting enterprises and credit institutions trading in gold in accordance with the SBV's Inspection Decision No. 324/QD-TTGSNH2 dated May 17, 2024.

The Ministry of Public Security was assigned to work with the SBV and relevant agencies in inspecting gold trading activities and prevent gold smuggling, speculation, illegal trading, or market manipulation.

The Ministry of Public Security, the Ministry of Industry and Trade, the Ministry of Science and Technology, the Ministry of Finance, the Ministry of Justice, and the Ministry of Culture, Sports and Tourism and relevant agencies and localities must proactively work with the SBV on gold market management; promptly share and provide information, and report issues arising beyond their authority to competent authorities.

Viet Nam gold price rose modestly Tuesday morning as global rates hover around the lowest in a week. Gold ring price was unchanged at VND115 million per tael, up 42.5 percent since the beginning of the year.

Since 2014, none of licences has been issued for gold imports for the production of gold bars, resulting in limited raw material supply. This has led to fluctuations in domestic gold prices, a significant price disparity between SJC-branded gold and other brands, and potential instability in the financial market and currency.

Therefore, there is a need to amend Decree 24/2012/ND-CP to ensure effective management of the gold market while maintaining its integrity. Under the current decree, the SBV holds a monopoly on gold bar production, while gold jewelry and art are managed by relevant authorities. The State Bank, therefore, will re-assess the role of Decree 24/2012/ND-CP to determine its effectiveness and propose necessary changes./.