HÀ NỘI  – Prime Minister Phạm Minh Chính has directed the State Bank of Vietnam (SBV) to intensify oversight of the gold market, aiming to narrow the gap between domestic and global gold prices to a slim 1-2 per cent margin, as part of a broader effort to stabilise the economy, tame inflation, and spur growth.

Chairing a working session in Hà Nội on May 24 between permanent Government members and representatives of ministries, agencies, associations and businesses, the PM called for a crackdown on shadowy practices like market manipulation, gold smuggling, and other illicit activities.

The PM stressed that it was necessary to have a solution to increase supply and choke off speculative demand. To boost supply, he called for breaking the stranglehold of monopolies and opening gold trading to more enterprises. On the demand side, he advocated using taxes, fees, and other fiscal tools to deter speculative buying.

He demanded rigorous inspections and audits to root out smuggling and profiteering, and a fast-tracked revision of Decree 24, the ageing framework governing the gold market, to bring it in line with current economic realities. By June, a national gold market database must be put into operation, the leader noted.

For long-term stability, he tasked the SBV, the Ministry of Finance, and other agencies with creating a business environment so vibrant that people might choose entrepreneurship over hoarding gold. A gold exchange platform, he suggested, could formalise trading under transparent rules.

To fortify the market’s integrity, he proposed a separation between the State’s regulatory role and commercial gold trading, a move to curb conflicts of interest. He also saw opportunity in the lustre of gold jewelry, advocating for its production as a way to spark industry growth and create jobs. - VNA/VNS