In May, SBV launched an inspection campaign focussing on law compliance of gold trading enterprises. — Photo diendandoanhnghiep.vn

The State Bank of Việt Nam (SBV) has said it will further implement measures to regulate gold prices in the country.

The information was part of the bank’s response to the concern of Thái Nguyên Province voters, following the seventh session of the 15th National Assembly, which highlighted the need to enhance measures to manage and ensure a fair gold market.

As global gold prices rose and reached a historic peak of US$2,700 per ounce on September 26, domestic gold prices also increased, with a significant gap compared to international prices.

The difference, which was only around VNĐ3 million ($121) per tael from 2014 to 2021, had escalated significantly and reached as high as VNĐ18 million ($725) per tael.

“This troubled public sentiment and challenged macroeconomic and monetary stability,” SBV said in its response.

In compliance with directives from the Government and the Prime Minister, based on current legal regulations, SBV had coordinated with various ministries, sectors and localities to implement comprehensive solutions to address the high price disparities and stabilise the gold market, it said.

As a result, the difference between the domestic SJC gold price and the converted international gold price was reduced to approximately VNĐ4 million ($161) per tael on September 25.

SBV said it would continue to work to further narrow the gap.

It would collaborate with related ministries and agencies to inspect the operations of gold trading enterprises, and the shops and agents involved in buying and selling gold bars.

Efforts would be focused on inspecting two credit institutions and four gold trading enterprises.

“SVB is committed to firmly addressing any violations and proposing strict actions to the authorities, including potential criminal law violations, if applicable,” it said.

The bank is also finalising a report proposing amendments to the Government’s Decree 24 from 2012, which includes provisions on managing the production of gold bars to refine the legal framework for regulating gold trading activities.

The report takes into consideration practical circumstances while selectively adopting international experiences, particularly from countries with similar business environments and political institutions to Việt Nam.

In May, SBV launched an inspection campaign focussing on law compliance of gold trading enterprises.

The inspection team comprised representatives from SBV, the Government Inspectorate, the Ministry of Public Security, the Ministry of Finance and the Ministry of Industry and Trade. — VNS