VINACHEM

The State Bank of Vietnam has reported to the National Assembly that domestic gold prices are currently 5-7% higher than global rates, following comprehensive measures to stabilize the market.

The State Bank of Vietnam (SBV) recently submitted a report to the National Assembly detailing the implementation of Resolution No. 62/2022/QH15 regarding the questioning session at the 3rd Session of the 15th National Assembly (banking sector).

The report includes a summary and evaluation of the implementation of Decree 24 on the management of gold trading activities.

Previously, on March 20, 2024, the SBV submitted Proposal No. 28 to the Prime Minister, summarizing and assessing the execution of Decree 24. The proposal outlined four groups of solutions and two sets of recommendations for future market management.

The SBV has worked with ministries, sectors, and local authorities to deploy comprehensive measures to address the significant domestic gold price gap, stabilize the gold market, and contribute to macroeconomic stability. It also instructed local SBV branches to coordinate with relevant authorities to monitor, inspect, and oversee gold trading activities.

Additionally, the SBV mandated that credit institutions and licensed gold trading enterprises comply strictly with legal regulations on gold trading activities and adhere to proper invoicing and documentation procedures.

The SBV has urged the Ministry of Public Security, the Ministry of Industry and Trade, and the Ministry of Finance to strengthen monitoring and inspection, as well as address violations such as gold smuggling, market manipulation, and profiteering that destabilize the gold market.

In 2024, the SBV coordinated with the Ministry of Public Security, the Government Inspectorate, the Ministry of Industry and Trade, and the Ministry of Finance to form an inter-ministerial inspection team tasked with ensuring compliance with policies and laws related to gold trading, as per Decision No. 324 dated May 17, 2024. Direct inspections have concluded, and the draft report is currently being prepared.

Furthermore, under current legal frameworks, the SBV has organized direct auctions of SJC gold bars to supplement the market supply. The bank has collaborated closely with ministries, especially the Ministry of Public Security and local governments, to maintain public order and ensure the effectiveness of market interventions.

Thanks to these comprehensive measures and effective coordination with other agencies, the domestic gold price gap with global prices has been controlled and kept within an appropriate range.

According to the SBV, domestic gold prices are now 5-7% higher than global rates. The stabilized gold market has positively supported the foreign exchange market, exchange rates, and macroeconomic policy implementation.

The SBV reaffirms its commitment to closely managing the gold market and maintaining stable price differentials to support macroeconomic stability.  – Source: VNN –