Response to An Giang Voters’ Petition on Gold Price Control
The State Bank of Vietnam has responded to the petition of An Giang voters regarding the control of the gap between domestic and international gold prices, addressing issues of frequent gold price fluctuations and speculative, hoarding, and market manipulation behaviors.
No Gold Price Control
According to the State Bank of Vietnam, as the country does not mine gold, domestic gold supply largely depends on imports. Consequently, domestic gold prices are influenced by global gold price movements.
The central bank also stated that under the 2012 Price Law and its 2023 amendment, gold is not classified as an essential commodity and does not fall under the category of goods and services subject to price stabilization. The State Bank of Vietnam only intervenes in the gold market when price fluctuations negatively impact the foreign exchange market, exchange rates, or monetary policy.
The draft decree 24 is undergoing a review by the Ministry of Justice
Regarding gold market management policies, the State Bank of Vietnam has collaborated with relevant ministries and sectors to evaluate and summarize Decree 24/2012 on gold business management. Based on the evaluation results, the bank has submitted to the Prime Minister proposed amendments aimed at enhancing the effectiveness and sustainability of gold market management. Currently, the draft decree amending Decree 24 is under review by the Ministry of Justice.
In terms of inspecting and supervising gold business activities, the State Bank of Vietnam has coordinated with the Ministry of Public Security, the Government Inspectorate, the Ministry of Finance, and the Ministry of Industry and Trade to conduct inspections of compliance with legal regulations.
Intensifying Gold Market Inspections
On May 30, the State Bank announced the results of an inter-sectoral inspection of six enterprises and banks that account for over 90% of the gold bullion market share. The bank has also instructed its regional branches to closely coordinate with relevant authorities to inspect and supervise local gold business activities.
The State Bank of Vietnam affirmed that it will continue to strengthen inspections and examinations of the gold market to ensure transparency and efficiency in its operations, while strictly handling speculative, hoarding, and price manipulation behaviors.
Why Has SJC Company Temporarily Halted the Purchase of One Tael Gold Bars?
“SJC Company is temporarily halting the purchase of certain types of SJC gold bars. Specifically, the company is no longer accepting purchases of bent or deformed SJC gold bars, as well as SJC gold bars with only one word imprinted on them.”
The Latest Move by SJC: Refusing to Buy ‘Single-Word’ Gold
“After a period of refusing to repurchase SJC gold bars with a single-word label, SJC Company will resume the repurchase of these gold bars, as well as deformed gold bars, starting next week.”
Gold Auction Set to Resume as Central Bank Seeks Support from Police and Finance Ministry
On April 15, 2024, the SBV sent a document to the relevant Ministries and agencies requesting their coordination in implementing the Prime Minister’s instructions on gold market management. At the same time, it also issued a directive to the SBV branches in provinces and centrally run cities and the licensed credit institutions and enterprises to perform the tasks assigned by the SBV.
Outsource your gold business to the market
The State Bank currently has a monopoly on the production of SJC gold bars as well as the import of gold. According to experts, if the gold business is handed over to the market, the price of gold bars will immediately cool down and reduce the price difference between brands, lowering the domestic gold price compared to the international gold price.
