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Apr 12, 2024 / 17:04

PM orders urgent measures to address volatile gold prices

The measures are aimed at ensuring a stable and efficient gold market.

The State Bank of Vietnam (SBV) has been instructed to "immediately address" the high discrepancy between domestic and international gold prices.

 Locals buying gold in a jewelry shop in Tran Duy Hung Street, Hanoi. Photo: Pham Hung/The Hanoi Times

Last week, the gold market experienced continuous fluctuations. At one point, gold bars reached an all-time high of nearly VND85 million ($3,402), while gold rings hit VND78 million ($3,122) per tael. The gap with international gold prices widened significantly, with domestic gold rings being more expensive by VND5.5-6.5 million ($220-260), while a tael of gold cost around VND13 million ($520) more.

On  April 11, Prime Minister Pham Minh Chinh instructed the SBV and relevant agencies to strictly implement Decree 24/2012 on gold market management, closely monitor global and domestic gold prices, and promptly devise solutions to stabilize the market.

The central bank has also been instructed to intervene promptly and "immediately address" the situation where the discrepancy between domestic and international gold prices remains high. This measure is aimed at ensuring a stable and efficient gold market.

The Government leader also requested regulatory agencies to prioritize the interests of the nation and people, encourage the production and export of fine jewelry and create employment opportunities.

The Prime Minister tasked relevant parties with managing the supply of gold and jewelry according to market developments without affecting the exchange rate, state reserves, profiteering, speculation, manipulation, or price inflation.

Information technology and digital transformation must be strengthened in the supervision and management of the gold market, and electronic invoices must be issued for the purchase and sale of gold to increase transparency. For businesses that do not comply, the strongest penalty will be the immediate revocation of operating licenses.

Furthermore, relevant authorities must continue to study and propose amendments to Decree 24 to reflect current realities and prevent the economy from becoming overly reliant on gold, with implications for exchange rates, inflation, and macroeconomic stability.

Chinh also urged the relevant agencies to continue inspecting and monitoring the market, strictly penalizing violations such as cross-border gold smuggling, profiteering, speculation, manipulation, and hoarding goods to inflate prices.