The question and answer session of Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong at the 8th Session of the 15th National Assembly received much attention from National Assembly deputies and the public because of questions surrounding gold prices.
The Governor of the State Bank of Vietnam affirmed that the current gold price is also a headache for the world, not just Vietnam. Since the beginning of the year, the international gold price has increased by more than 50%.
Therefore, the State Bank of Vietnam quickly intervened to stabilize gold prices, aiming to narrow the gap between domestic and international gold prices. Because the larger the gap, the stronger the phenomenon of gold smuggling.
According to Governor Nguyen Thi Hong, thanks to the State Bank's measures such as organizing auctions and selling gold bars directly to people through state-owned banks and SJC company, the gold price has decreased, the difference is only 3-4 million VND/tael compared to the world price.
But according to some National Assembly deputies, the decrease in gold prices is only a necessary but not sufficient condition for the gold market to stabilize. Currently, the scarcity is still occurring, making it difficult for people to buy gold.
Delegate Trinh Xuan An (Dong Nai Delegation) questioned that Decree 24 does not prohibit businesses from importing raw materials to make gold jewelry and fine arts, but we still have the mindset of "if we can't manage it, we ban it", affecting the rights of the people.
Therefore, this delegate believes that jewelry businesses should import gold to serve the people, the economy, and to collect taxes.
Delegate Le Thanh Hoan (Thanh Hoa delegation) also commented that this is the right time to change the mindset about how to manage the gold market after more than 10 years of implementing Decree 24.
Regarding this issue, the Governor of the State Bank said that Decree 24 has regulations on management methods for the gold bar and jewelry and fine art gold markets.
The State Bank of Vietnam does not prohibit the import of gold jewelry materials. Decree 24 clearly stipulates that depending on the objectives of monetary policy in each period, there will be decisions on gold production, import and export.
Since our country does not produce gold itself, market intervention depends entirely on international gold imports. Therefore, the State Bank will closely monitor market developments to come up with appropriate policies to stabilize the gold market.
Not only did National Assembly delegates propose measures to open the door for businesses to import gold, but many financial and economic experts also agreed with this solution.
Dr. Dinh The Hien - Director of the Institute of Informatics and Applied Economics - assessed that the demand for gold imports is there but not so great that it would consume a large amount of foreign currency, causing exchange rate instability.
Therefore, this person supports allowing some reputable businesses with financial potential and gold trading systems to import gold to meet domestic demand.
If we still import gold every year in a properly managed quantity, gold prices will no longer be a problem that makes people excited and management agencies have a headache.
Meanwhile, financial expert Dr. Nguyen Tri Hieu said that it is necessary to find ways to increase the supply of gold. Mr. Hieu realized that allowing businesses to import gold will bring benefits to consumers and stabilize the market.
Dr. Hieu "suggested" that the State Bank must calculate the amount of foreign exchange, on that basis, assign "quota" to gold traders, allowing them to import according to the set quantity.
