Vietnamese Gov’t to strengthen gold market management

Prime Minister Pham Minh Chinh today [March 20] signed off Directive No. 22, ordering the strengthening of measures to manage the gold market.

Locals buying gold. Photo: Duy Khanh/The Hanoi Times

The Prime Minister has recently instructed the State Bank of Vietnam (SBV) to closely monitor the fluctuations in global and domestic gold prices and promptly take measures to stabilize the gold market.

However, the global and domestic gold markets have exhibited complex developments, with significant fluctuations in domestic gold prices, affecting the stability, safety of financial and monetary markets, and social confidence.

In particular, the SBV is tasked with closely monitoring global and domestic gold price movements to promptly implement prescribed measures to stabilize the gold market, conduct comprehensive assessments, and propose solutions to address the recent high disparity between domestic and international gold prices, minimize the impact of gold on the economy, especially on exchange rates, interest rates, monetary and foreign exchange markets, and financial security.

The implementation results are expected to be submitted to the Prime Minister by March 22, noted the directive.

The SBV will also thoroughly review the legal framework, mechanisms, and policies related to gold market management and trading activities. The goal is to develop a transparent, healthy, efficient, and sustainable market that promotes socioeconomic development and macroeconomic stability.

Furthermore, the SBV shall conduct inspections, and investigations of the gold market, activities of gold trading businesses, stores, distributors, and other entities participating in the market.

The authority should strictly handle violations according to the law, especially smuggling of gold across borders, speculation, manipulation, and taking advantage of government policies to inflate the price of gold by organizations, and individuals, causing instability and safety risks to the gold market.

In case of detecting gold trading activities with signs of irregularities, records, documents,  and evidence shall be immediately handed over to competent authorities for strict and transparent handling by the law. The Prime Minister will be briefed on the implementation results in March.

Moreover, they should be more proactive in information and communication work,  provide timely, official, public, and transparent information on the management policies of financial, monetary, foreign exchange, and gold markets, strengthening public confidence in the value of the Vietnamese dong and stabilizing public sentiment and fostering social consensus.

In this directive, the Prime Minister has requested the Ministry of Public Security to lead and coordinate with the SBV and relevant inspection, examination, law enforcement, and related agencies to promptly implement measures as prescribed to strictly handle violations related to the gold market and gold trading activities, especially smuggling, manipulation, speculation, price inflation affecting gold prices...