Prime Minister Pham Minh Chinh has instructed the State Bank of Vietnam (SBV) to enhance supervision over the gold market with the objective of reducing the difference between local and international gold prices to a mere 1-2%.
On Saturday in Hanoi, during a working session with permanent government officials and delegates from various ministries, agencies, associations, and businesses, Prime Minister Chinh emphasized the need to combat clandestine practices such as market manipulation, illegal gold trafficking, and other unlawful actions.
The Prime Minister emphasized the importance of finding ways to enhance supply and curb speculative demand. To augment supply, he urged dismantling the grip of monopolies and allowing additional businesses into gold trading. Regarding demand management, he proposed employing taxes, levies, and other financial measures to discourage speculation.
He called for stringent inspections and audits to eliminate smuggling and profiteering, aligning them with present economic conditions. The chief emphasized that a nationwide gold market database should be operational by June.
To ensure long-term stability, he assigned the SBV, the Ministry of Finance, and other institutions the responsibility of fostering an entrepreneurial climate so dynamic that individuals may opt for starting businesses rather than stockpiling gold. He proposed implementing a gold exchange platform as a means to regulate transactions through clear guidelines.
In order to strengthen the market’s integrity, he suggested separating the state’s regulatory functions from commercial gold trading, aiming to reduce potential conflicts of interest. Additionally, recognizing the appeal of gold jewelry, he promoted its manufacture as a means to boost industrial development and generate employment opportunities.
