Vietnam further tightens gold trading amidst non-stop price hikes

By Quang Minh

Fri, May 17, 2024 | 10:52 am GMT+7

The Vietnamese government is taking more aggressive action toward reining in the local gold market as prices of the metal remain high despite the central bank releasing more supply.

A gold store under Bao Tin Minh Chau in Hanoi. Photo courtesy of Nhan Dan (The People) newspaper.

At a meeting in Hanoi on Thursday with government agencies to discuss the coordination of fiscal and monetary policies, Prime Minister Pham Minh Chinh ordered the immediate adoption of various tools and measures to regulate and stabilize the gold market more effectively and in a timely manner.

He called on relevant authorities to narrow the gap between Vietnamese and global gold prices, as well as inspecting the gold market and strictly handling violations.

The government chief also requested the serious implementation of electronic invoices in gold trading. Traders who fail to do so by June 15 will have their licenses withdrawn.

The Ministry of Public Security was asked to enhance screenings and inspections, and strictly deal with gold smuggling and speculation.

Amid ongoing global uncertainties, Chinh emphasized the need for proactive and flexible management of fiscal and monetary policies.

The State Bank of Vietnam (SBV) needs to prevent the exchange rate from affecting macroeconomic fundamentals and inflation control, Chinh said. In addition, the PM requested the bank to work on measures to cut lending rates by 1-2 percentage points to stimulate business.

He set a target for credit growth of 5-6% in the second quarter, as lending has been lacklustre since the start of this year.

Earlier on Tuesday, Deputy Prime Minister Le Minh Khai asked the Ministry of Public Security and the Government Inspectorate, and the ministries of finance and industry & trade to join inspection teams led by the SBV.

Gold prices slid slightly on Friday morning. State-owned Saigon Jewelry and Germ Stone Co. (SJC) offered the metal at VND87.4-89.9 million ($3,532.5) a tael, while Doji fixed the quote at VND87.4-89.5 million.

The SBV has sold just 14,900 taels of gold in six auctions with 100,800 taels on offer.

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