Shifting from tightening to control to open to manage
This afternoon (May 28), General Secretary To Lam had a working session with the Central Committee for Policy and Strategy on mechanisms and policies for effective management of the gold market in the coming time.
Attending the meeting were Politburo members: Standing member of the Secretariat Tran Cam Tu; Director of the Ho Chi Minh National Academy of Politics, Chairman of the Central Theoretical Council Nguyen Xuan Thang; Secretary of the Party Central Committee, Chairman of the Central Inspection Committee Nguyen Duy Ngoc.
At the meeting, Secretary of the Party Central Committee, Head of the Central Policy and Strategy Commission Tran Luu Quang presented the Assessment Report, proposing effective mechanisms and policies for the gold market in the coming time.
Mr. Tran Luu Quang affirmed that the viewpoint of the Central Policy and Strategy Department is the gold market management according to the market principles, with the appropriate management of the State; eliminating unacceptable thinking, prohibited; respect ownership, property rights, business freedom; ensure transparency in the market.
Concluding the meeting, General Secretary To Lam emphasized that the mechanism and policies for managing the gold market in Vietnam in recent years have had positive adjustments and improvements.
However, it is also necessary to frankly admit that the mechanisms and policies for managing and regulating the gold market have been slow to be innovated, have not kept up with the development of the market and the requirements of practice, and need to be urgently innovated and perfected.
General Secretary To Lam suggested thoroughly grasping a number of requirements on viewpoints, goals, tasks and solutions for the coming time.
In particular, in terms of viewpoints, strongly shift from administrative thinking to disciplined market thinking, from "tightening to control" to "opening to govern"; it is necessary to thoroughly grasp and eliminate the thinking of "if you can't manage, then ban"; at the same time, it is necessary to move the gold market in accordance with market principles and have state management.
Quickly amending Decree 24/2012/ND-CP towards marketization
Regarding the goal, effectively manage the gold market, stabilize the macro economy, mobilize resources for socio-economic development.
Regarding tasks and solutions, General Secretary To Lam stated:
(1) Completing the legal framework, quickly amending Decree 24/2012/ND-CP in the direction of marketization with a roadmap and strict control; creating more effective connections between the domestic gold market and the international market;
(2) Eliminate the State monopoly on the gold bar brand in a controlling manner on the principle that the State still manages gold bar production activities, but may grant licenses to many qualified enterprises to participate in gold bar production to create an equal competitive environment, thereby helping to diversify supply and stabilize prices;
(3) Expand controlled import rights to increase gold supply, contribute to reducing the imbalance between domestic and world gold prices, and limit cross-border gold smuggling;
(4) Encourage the development of the domestic jewelry gold market to gradually turn Vietnam into a center for the processing and export of high-quality jewelry, converting accumulated gold into products with added value;
(5) Develop attractive alternative investment channels to mobilize gold from within the population into the economy;
(6) Improve the effectiveness of inter-sectoral management and coordination, especially in preventing and combating gold smuggling;
(7) Promote the role of the Gold Business Association, act as a bridge between gold enterprises and management agencies, promptly reflect difficulties, make recommendations and coordinate the implementation of market stabilization measures when necessary;
8. Maintain macroeconomic stability and confidence in the Vietnamese currency, considering this a fundamental, long-term solution to convert resources from gold to economic development;
9.Early build an information system and data on the gold market to increase publicity and transparency, to collect taxes, manage and assess the impact on the foreign exchange gold market, exchange rates, and different investment channels.
The General Secretary also emphasized the need to focus on researching a number of solutions to soon apply them appropriately and have a roadmap:
(1) Research and refer to international experience to propose the implementation of the establishment of a National Gold Trading Department; or allow gold to be traded on Commodity Trading Departments; or establish a Gold Trading Station in the International Financial Center in Vietnam;
(2) Research and apply taxes to gold trading to improve market transparency, market monitoring capacity of management agencies and limit gold trading for speculative purposes;
(3) Research on eliminating export taxes on gold for handicrafts to encourage the development of Vietnam's production and export of gold for jewelry.
General Secretary To Lam assigned the State Bank Party Committee to preside over and coordinate with the Central Committee for Policy and Strategy and relevant agencies to report and make specific proposals.
