Forming a diverse and competitive market
Recently, in a working session with the Central Committee for Policy and Strategy on mechanisms and policies for gold market management, General Secretary To Lam emphasized the need to shift from administrative management thinking to a disciplined market thinking, from "ough to control" to "open to manage"; eliminate the thinking of "if you can't manage, then ban".
General Secretary To Lam also outlined tasks and solutions related to gold market management such as amending Decree 24 2012 soon in the direction of marketization with a roadmap and strict control; creating more effective connections between the domestic gold market and the international market; eliminating the monopoly on controlled gold bars; expanding controlled import rights to increase gold supply...
Discussing this content, National Assembly Delegate (NAD) Pham Van Hoa (Dong Thap) said that the important directive message of General Secretary To Lam during the working session with the Central Committee for Policy and Strategy attracted great attention and received great support from voters.
Analyzing the shortcomings, especially related to the supply and price of gold bars in recent times, delegate Hoa said that amending Decree 24/2012/ND-CP is urgent to end the monopoly situation. This needs to be implemented as soon as possible, ideally in 2025.
According to Mr. Hoa, when there are many enterprises qualified to produce gold bars, a diverse, competitive market will be formed with the ability to stabilize prices. Gold prices will then be determined according to market signals.
Of course, the role of the State in managing and regulating is indispensable, especially in managing the amount of imported and consumed gold. This also helps to manage the gold market more effectively, prevent tax losses, combat smuggling while creating a healthy competitive environment and narrowing the gap between domestic and world gold prices.
When supply is more abundant, demand will be less scarce. In fact, there was a time when people fell into a state of "thirst for gold" because they were afraid they could not buy, leading to the psychology of hoarding. With the gradual elimination of the monopoly on gold bars in a controlled manner, expanding import rights and implementing solutions as directed by General Secretary To Lam, we have the basis to manage the gold market more effectively, stabilize the macro economy and better mobilize resources for socio-economic development" - delegate Pham Van Hoa emphasized.
No "golding" the economy
In the same discussion, economic expert, Associate Professor, Dr. Dinh Trong Thinh commented that changing the way the gold market is managed is a necessary requirement at the present time.
However, Mr. Thinh said that opening the market must be associated with the goal of improving efficiency, combating "goldenization" of the economy and ensuring that gold is not only a stored property but also a financial tool for growth. Therefore, the State Bank needs to play the role of managing the gold market to avoid the "goldenization" of the economy.
Mr. Thinh also said that it is necessary to create conditions for businesses to import raw materials to produce jewelry, ensuring to meet market demand. At the same time, this also contributes to reducing product costs.
The amendment of Decree 24/2012 in the direction of marketization has a roadmap, aiming to effectively connect domestic and international markets.
