Deputy Prime Minister Le Minh Khai: Decision to inspect the gold market must be announced by the end of the week at the latest

Deputy Governor of the State Bank Pham Thanh Ha reported on developments in the domestic and international gold market; state management of the gold market; bidding to supply gold bars to the market; implementation of the Government's and Government leaders' instructions on gold bar price management, etc.

At the meeting, representatives of the State Bank, the Government Office, the Ministry of Finance, the Ministry of Public Security, the Government Inspectorate, leaders of Ho Chi Minh City, and SJC Company discussed the developments in world gold prices, domestic gold prices, especially SJC gold bar prices; analyzed the reasons for the high difference in domestic SJC gold bar prices compared to world gold prices; inspection, examination, and supervision of the gold market; use of electronic invoices in buying and selling gold; prevention and combat of gold smuggling, etc., thereby proposing solutions to manage the gold market in the short and long term.

Opinions say that gold is not a commodity whose price is stabilized by the state. The state does not intervene, protect or control the price of gold. The State Bank only has a monopoly on the production of gold bars, not the trading of gold bars.

However, gold bars are a special product, both a commodity and a currency. The people’s need to buy, sell and exchange gold bars is legitimate. Therefore, the State Bank has the responsibility to intervene, stabilize the market, “create a level playing field” to ensure the harmony of interests between entities; strictly handle violations of the law, speculation, and manipulation of the gold market…

Representatives of ministries, sectors and enterprises also proposed solutions to increase the supply of gold bars and "cool down the market", including the issue of appropriate floor prices to successfully organize gold bar auctions of the State Bank in accordance with the law, ensuring harmony of interests between the state, enterprises and people...

Fundamentally and in the long term, Decree 24/2012/ND-CP must be amended to remove the monopoly of the SJC gold bar brand. Gold bars must be managed as 9999 quality gold. Jewelry gold is considered a normal commodity.

Implementing the Prime Minister's direction on inspecting and examining the gold market, the representative of the State Bank said that it has directed and proposed to establish an interdisciplinary inspection team with the participation of the Ministry of Public Security, the Government Inspectorate, the Ministry of Industry and Trade, and the Ministry of Finance. Currently, the functional units of the State Bank are conducting a field survey to ensure effective inspection. The survey is expected to be completed tomorrow, May 15; then it will be reported to the Party Committee of the State Bank; it is expected that the inspection decision will be issued next week.

Representatives of ministries and Ho Chi Minh City also pledged to continue to strictly implement the direction of the Government and the Prime Minister on gold market management, strengthen inspection and supervision, proactively fight and strictly handle violations of speculation and manipulation of the gold market; strengthen communication work on gold market management;...

Appreciating the opinions of representatives of ministries, Ho Chi Minh City and SJC Company, Deputy Prime Minister Le Minh Khai requested ministries, branches and localities, based on their assigned functions, tasks and authorities, the directions of the Government, the Prime Minister and legal regulations, to immediately implement measures to resolve the current shortcomings of the gold market; ensuring the stable operation of the gold market with reasonable gold bar prices.

The State Bank of Vietnam fully absorbs the opinions at the meeting, collects more information and data to fully assess supply and demand; the gold trading situation of gold bar trading enterprises, etc. to have appropriate and effective solutions.

Regarding the inspection and examination of the gold market and gold trading activities, Deputy Prime Minister Le Minh Khai requested the Ministry of Public Security, the Government Inspectorate, the Ministry of Finance, and the Ministry of Industry and Trade to send competent and knowledgeable officials to join the interdisciplinary inspection team. The State Bank of Vietnam must announce the inspection decision by the end of this week at the latest.

The Deputy Prime Minister also requested agencies, ministries, branches and localities to inspect and examine the gold market and gold trading activities. If violations are detected, the case must be immediately transferred to the police for handling according to the law.