According to Lao Dong Newspaper reporters, at Bao Tin Minh Chau branches, for nearly a week now, the image of long lines of people waiting for the opportunity to "hold" gold in their hands is no longer strange.
Many people have to wait outside branches for days in a row with the hope of getting a plain gold ring to take home. However, gold brands now set a daily limit on the number of rings sold due to the scarcity of gold. Many people wait for their turn to pay but have to turn back because their turn is over.
In addition to the need for jewelry, the reason why Vietnamese people like to hold gold comes from many reasons, notably the psychology of hedging against inflation risks and the lack of diversity in financial investment products.
In order to limit the situation of people "hunting" for gold, the State Bank needs to have comprehensive solutions, focusing on developing the financial market and increasing confidence in investment channels other than gold.
One of the important directions is to develop new financial products that suit the needs of each group of people. Talking to Lao Dong, Associate Professor, Dr. Pham Manh Hung, Deputy Director of the Institute of Banking Science Research, Banking Academy said: "We can promote investment-linked savings products, fund certificates, or corporate bonds with competitive interest rates and tightly controlled risks.
"In particular, developing financial products linked to insurance or long-term goals such as retirement can motivate people to switch from gold accumulation to financial investment," Mr. Hung shared.
Currently, transparent, effective, and specialized financial investment products in our country are still relatively few. For example, for individuals and organizations that need to prevent risks related to natural disasters and climate change, in some countries, they can buy climate risk insurance products or weather derivative contracts. However, "Vietnam currently does not have these financial products for investment or protection," said the Deputy Director of the Banking Science Research Institute.
According to experts, the State Bank needs to build a stable and transparent macroeconomic environment to reduce concerns about inflation. When the economy is stable, people will feel more secure when investing in other assets, instead of relying on gold as a tool to preserve value.
Finally, financial education is always an urgent requirement and plays a significant role. According to Associate Professor Dr. Hung, people need to be equipped with knowledge to understand that although gold is stable, it is not a highly profitable investment channel. When they see other investment channels that are both safe and have better profit potential, people will shift away from holding gold.
In the spirit of Decree 24, the State Bank does not encourage people to hold gold. Because when holding gold, the value may be large but people cannot use that money. If they convert gold to VND to deposit in the bank, that money can be used to lend for production and business or invest in shares, stocks, and the stock market to serve production and business.
