Government steps up gold market reform

Government steps up gold market reform

Persistent issues, including market manipulation, price speculation, and significant discrepancies between domestic and international prices, and gold smuggling continue to pose problems.

People seen inside a gold shop in Hà Nội. — VGP Photo

The Government is stepping up efforts to tighten control over the gold market as part of broader measures to stabilise the macroeconomy, curb inflation and promote growth.

At a recent meeting on gold market management, Prime Minister Phạm Minh Chính directed the Ministry of Justice and the State Bank of Việt Nam (SBV) to revise Decree No 24/2012/NĐ-CP on gold trading under a simplified process, with completion due by June 2025.

The SBV has recently implemented interventions such as gold auctions and distributing bullion through commercial banks and SJC to narrow the gap between domestic and global gold prices. These actions have helped stabilise the market, though challenges remain.

The Prime Minister said persistent issues, including market manipulation, price speculation, and significant discrepancies between domestic and international prices, and gold smuggling continued to pose problems, while management in some localities remained inadequate.

“Our goal is to manage the gold market efficiently, contribute to macroeconomic stability, control inflation, and support growth," the PM said.

"At the same time, we need policies to tap into the idle gold among the public for socio-economic development, while preventing market manipulation and smuggling.”

One of the key long-term proposals is the establishment of a national gold exchange. According to Dr Nguyễn Trí Hiếu, Director of the Global Institute for Financial and Real Estate Market Research and Development, such an exchange would increase transparency and sustainability.

PM Chính also stressed the need for a strict legal framework, with all transactions conducted electronically through licensed institutions, ensuring proper oversight and risk control.

Participants should receive certificates convertible into physical gold under simple conditions to foster public trust, he added.

Huỳnh Trung Khánh, Vice President of the Việt Nam Gold Traders Association, supported the idea but stressed the importance of legal groundwork. He noted that revisions to Decree 24 should explicitly include provisions on establishing and operating a gold exchange.

“The revised decree will open the door to the next steps, such as allowing members to open accounts, issue gold certificates to customers and support digital trading,” Khánh said.

SBV Governor Nguyễn Thị Hồng supported the proposal, noting that many countries have successfully launched gold exchanges. However, she emphasised the need for infrastructure investment and close coordination between the SBV and other ministries to assess feasibility and potential impacts, as Việt Nam is not a gold-producing country.

Alongside this initiative, the SBV has been rolling out measures to stabilise the gold market, according to Hồng. These include releasing bullion into the market through auctions and direct sales, which have significantly reduced the gap between domestic SJC gold prices and global benchmarks.

The SBV is also working with governmental ministries to inspect gold trading businesses and transfer investigation results to the authorities. It has pledged to monitor both domestic and international developments closely and called for stronger cooperation from localities and ministries.

Information campaigns will be stepped up to raise public awareness and stabilise sentiment. At the same time, agencies such as the Ministry of Public Security, the Ministry of Industry and Trade, and the Ministry of Finance will intensify inspections to prevent manipulation and smuggling.

The PM assigned the SBV, the Ministry of Finance and other agencies to improve the business environment to encourage people to channel capital into production and entrepreneurship instead of hoarding gold.

The Government also aims to separate State management from private gold business operations, and promote gold jewellery manufacturing to create jobs and stimulate economic activity.

Nguyễn Tu Mi, Chairman and CEO of Mi Hồng Co Ltd in HCM City, said that establishing a national gold exchange would be essential.

A regulated and transparent platform would reduce the influence of speculation and offer the public a reliable trading channel, he added. 

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