Image Credits: Central Banking
The State Bank of Vietnam (SBV) is implementing comprehensive strategies to stabilize the gold market, addressing significant price disparities in collaboration with various ministries and local authorities. As of the end of the week, gold ring prices reached all-time highs, with buying prices at VNĐ82.75 million ($3,362) per tael and selling prices up to VNĐ83.45 million per tael.
Throughout the week, gold ring prices consistently hit new record levels. For SJC gold bars, prices remained stable following a recent increase, with buying prices at VNĐ81.5 million per tael and selling prices at VNĐ83.5 million per tael. This stability follows the SBV’s earlier decision to boost the supply of SJC gold bars through select commercial banks and the Saigon Jewelry Company.
To ensure effective market regulation, local SBV branches have been instructed to monitor and supervise gold trading activities in their jurisdictions. The SBV has mandated that licensed credit institutions and businesses adhere strictly to legal regulations surrounding gold trading, particularly in invoicing and record-keeping.
In tandem with this, the Ministry of Public Security, the Ministry of Industry and Trade, and the Ministry of Finance have been called upon to enhance inspections and impose strict penalties on illegal activities such as gold smuggling and market manipulation, which undermine market stability.
The SBV has also organized auctions of gold bars and directly sold gold to four state-owned commercial banks and SJC to meet rising demand from consumers. By coordinating with various ministries and local governments, the SBV aims to maintain public order and ensure the effectiveness of its intervention measures.
Thanks to synchronized efforts by the SBV and effective coordination with relevant authorities, the disparity between domestic SJC gold bar prices and international gold prices has narrowed, contributing to a more stable gold market.
Furthermore, the SBV has intensified inspections of gold trading businesses to ensure compliance with legal standards and electronic invoicing regulations. The recent issuance of Inspection Decision No. 324/QĐ-TTGSNH2 aims to audit compliance among six licensed credit institutions and gold trading companies, which account for over 92% of the gold bar trading market.
Additionally, the Ministry of Planning and Investment is tasked with regulating the issuance of business registration certificates for gold trading enterprises, ensuring these companies declare their capital upon establishment and adhere to accounting regulations as per Decree 24. This decree mandates that enterprises must prove the origin of their gold to prevent fraud and legalize unofficial gold sources.