The Prime Minister to request that the price of gold bars in Vietnam not be too high compared to the world's price

The Prime Minister to request that the price of gold bars in Vietnam not be too high compared to the world's price (Internet image) 

Regarding this issue, LawNet would like to answer as follows:

On December 27, 2023, the Prime Minister issued Official Telegram 1426/CD-TTg on gold market management solutions.

The Prime Minister to request that the price of gold bars in Vietnam not be too high compared to the world's price

To stabilize and develop a safe, healthy, effective, and sustainable gold market, the Prime Minister requests that the State Bank of Vietnam focus on performing the following tasks:

- Closely monitor developments in world and domestic gold prices to urgently implement prescribed solutions to stabilize the gold market; actively develop scenarios and plans to respond to fluctuations in world and domestic gold prices to prepare appropriate, effective, and timely handling measures and tools according to authority.contributing to promoting socio-economic development, stabilizing the macro-economy, definitely not allowing the "goldenization" of the economy; Do not let negative impacts on exchange rates, interest rates, the money market, foreign exchange, financial safety and security, and national currency.

- Urgently have effective solutions to manage and operate domestic gold bar prices according to market principles; do not let the difference between domestic and international gold bar prices as high as in the past negatively affect macroeconomic management; and report on implementation results in January 2024.

- Strengthen inspection, examination, control, and supervision closely and comprehensively, with a focus on the gold market, the activities of gold trading enterprises, stores, gold bar trading and distribution agents, and other entities participating in the market;

Promptly detect loopholes and inadequacies to proactively, positively, and effectively handle them according to authority, report issues beyond authority, and propose appropriate and prescribed handling measures to competent authorities; Strictly handle violations according to the law, especially acts of smuggling, profiteering, speculation, manipulation, and taking advantage of price-pushing policies by organizations and individuals... causing instability and safety in the gold market;

In case gold business activities are detected with signs of violating the law, promptly transfer documents and records to the authorities for strict, public, and transparent handling according to the law.

- Overall and comprehensive assessment of the domestic gold market situation and state management of the gold market, including content on production and trading of gold bars, SJC brand gold, and gold jewelry, and identify specifically the achieved results, limitations, inadequacies, problems and causes, and lessons learned to have a basis for proposing management solutions in the coming time, ensuring strictness, feasibility, efficiency, compliance with regulations, authority, and stabilization of the gold, foreign exchange, and currency markets, contributing to limiting the goldification of the economy,
ensure national financial and monetary security.

- Review the legal framework, mechanisms, and policies related to gold market management and business activities of gold bars, gold jewelry, etc.; at the same time, summarize the implementation of Decree 24/2012/ND-CP on management of gold business activities to promptly propose to competent authorities to consider amending and supplementing regulations, ensuring improved effectiveness and efficiency of state management tools for the gold market, and developing a transparent, healthy, effective, and sustainable market, completed in January 2024.

- Be more proactive in information and communication work, promptly providing public and transparent official information on financial, monetary, foreign exchange, and gold market management policies and guidelines; strengthening confidence in the value of the Vietnam Dong; stabilizing people's psychology; and creating social consensus.

More details can be found in Official Dispatch 1426/CD-TTg, dated December 27, 2023.

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