Prime Minister Pham Minh Chinh has again called for stabilizing the gold market and reducing the gap between Vietnamese and global prices.
In a directive Tuesday he instructed the State Bank of Vietnam to find solutions and stand by to intervene to maintain stability. Vietnamese gold prices, historically higher than global rates, are currently around 17% higher.
He told the central bank to increase oversight and intensify inspections to identify and address violations in the gold market – particularly policy abuse, hoarding and price fixing.
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A person holds gold bars in a jewelry shop in HCMC. Photo by VnExpress/Quynh Tran |
At a monetary policy meeting on the same day, Deputy Prime Minister Ho Duc Phoc urged related agencies to concentrate efforts on preventing gold smuggling into the country. He also instructed the State Bank to consider setting up a gold exchange.
The central bank along with local governments and police and tax agencies to conduct surprise inspections of gold trading, business compliance, accounting, taxes, invoicing, and anti-money laundering efforts.
It is preparing to help end the state monopoly on gold production and create a licensing process for the import and manufacture of gold bullion so that banks and other businesses can participate in the market.
In recent months the government has issued multiple directives on gold prices and exchange rate management amid high market volatility.
Over the past month gold prices peaked at VND136 million (US$5,155) per tael of 37.5 grams, and global rates to $3,698 per ounce.
