The Prime Minister's request on strengthening measures to manage the gold market in Vietnam

The Prime Minister's request on strengthening measures to manage the gold market in Vietnam (Internet image)

On March 20, 2024, the Prime Minister issued Official Telegram 23/CĐ-TTg, which stipulates the strengthening of measures to manage the gold market.

The Prime Minister's request on strengthening measures to manage the gold market in Vietnam

Specifically, in the recent period, the Prime Minister issued Official Telegram 23/CĐ-TTg on December 27, 2023, regarding measures to manage the gold market. The government also issued Resolution 20/NQ-CP on February 5, 2024, directing the State Bank of Vietnam to closely monitor the fluctuations in global and domestic gold prices in order to timely implement measures to stabilize the gold market. The government leadership has issued numerous directives and urged the State Bank of Vietnam and relevant agencies to expedite the implementation of market management and monitoring measures.

However, the global and domestic gold markets have been experiencing complex developments, with significant fluctuations in domestic gold prices, which have affected the stability, safety of financial and monetary markets, and social psychology. In order to strengthen the management and development of a safe, healthy, efficient, and sustainable gold market, the Prime Minister has requested the following:

(1) The State Bank of Vietnam, in coordination with relevant agencies, shall:

- Implement the assigned tasks and measures to stabilize the gold market promptly, strictly, effectively, and timely, as specified in Resolution 20/NQ-CP on February 5, 2024, Dispatch 1426/CĐ-TTg on December 27, 2023, Directive 06/CT-TTg on February 15, 2024, and the guidance of government leaders in Official Letters 1035/VPCP-KTTH on February 17, 2024, Official Letter 1696/VPCP-KTTH on March 15, 2024, and other related documents.

- Continuously monitor the fluctuations in global and domestic gold prices to promptly implement the prescribed measures to stabilize and maintain the stability of the gold market. Conduct comprehensive evaluations, thorough analysis, and propose effective, timely, and compliant solutions based on market principles to address the recent high price differentials between domestic and international gold, preventing the "goldization" of the economy and negative impacts on exchange rates, interest rates, monetary and foreign exchange markets, as well as financial safety and security. Report the implementation results to the Prime Minister in March 2024.

- Thoroughly review the legal framework, mechanisms, and policies related to gold market management and the trading of gold bullion and jewelry. Immediately summarize the implementation of Decree 24/2012/NĐ-CP on the management of gold trading activities to propose amendments and supplements to enhance the effectiveness of state management tools and appropriate measures for handling issues beyond jurisdiction, while developing a transparent, healthy, efficient, and sustainable market to contribute to the development of the economy and society's stability. Report the proposal to the competent authority before March 22, 2024.

- Conduct inspections and checks on the gold market, the activities of gold trading enterprises, stores, distributors, and buyers and sellers of gold bullion, as well as other entities participating in the market. Promptly detect any shortcomings or weaknesses to proactively and effectively handle them within jurisdiction and report proposals for appropriate measures in accordance with regulations to address issues exceeding jurisdiction. Strictly enforce the law against violations, especially smuggling gold across borders, speculation, manipulation, and exploitation of price-boosting policies by organizations and individuals, which may disrupt the stability and safety of the gold market. In cases of detecting violations in gold trading activities, promptly transfer relevant documents and records to competent authorities for severe and transparent handling in accordance with the law. Report the implementation results to the Prime Minister in March 2024.

- Be more proactive in information and communication work, timely provide official, public, and transparent information on the orientation and policies for managing financial, monetary, foreign exchange, and gold markets, reinforcing trust in the value of the Vietnam dong; stabilizing the psychology of the people; and creating social consensus.

(2) The Ministry of Public Security, in coordination with the State Bank of Vietnam and relevant inspection, control, law enforcement, and regulatory agencies, urgently implements the prescribed measures to strictly handle legal violations related to the gold market and gold trading activities, particularly smuggling, manipulation, speculation, price-boosting, and other unlawful acts.

(3) The Ministries of Public Security, Industry and Trade, Finance, Justice, Science and Technology, Information, and Communications, as well as relevant agencies and local authorities, according to their functions and assigned tasks, should proactively coordinate closely with the State Bank of Vietnam in managing the gold market. They should timely share and provide information and proactively handle tasks and responsibilities within their jurisdiction. They should promptly report to the competent authorities any issues that arise beyond their jurisdiction.

Ho Quoc Tuan

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