The government has taken steps to prevent the economy from becoming too dependent on gold, which could have negative effects on the macroeconomy. In a resolution dated June 5, the State Bank was tasked with finding both short-term and long-term solutions to manage the gold market effectively. The goal is to ensure that the market operates smoothly and transparently, despite the high price discrepancy between domestic and international markets.
The phenomenon of “goldification” occurs when precious metals become dominant or replace domestic currencies as a widely accepted medium of exchange. This trend has attracted speculators and investors, as gold becomes a preferred form of business. People often value objects in terms of gold, further contributing to its ascent as a preferred asset.
In 2012, Decree 24 helped stabilize the gold market by balancing supply and demand. However, fluctuating gold prices this year have led to a surge in demand for gold as people switch to hoarding it, causing price differences between domestic and international markets to widen.
To address this issue, banks and SJC were authorized to sell gold bars at a stable price in order to stabilize the market. After four days of direct sales by banks and SJC, the gold price dropped by approximately 3 million VND, and the price difference with international markets narrowed significantly.
Deputy Prime Minister Tran Hong Ha announced plans to amend Decree 24 in order to ensure stability in the gold market while preventing economic overload by precious metals. The government has also instructed ministries of finance and state bank to increase inspection and supervision on compliance with regulations through electronic invoicing connection with tax authorities for gold businesses. Failure to comply may result in revocation of business license
