While responding to legislators’ questions on the State management over the gold market at the 15th National Assembly’s eighth sitting on November 11, State Bank of Vietnam Governor Nguyen Thi Hong noted that Vietnam is not a gold producing country and all efforts for stabilizing the market have therefore been dependent on imported gold.

In this context, the State Bank of Vietnam (SBV) has taken suitable measures to stabilize the domestic gold market to ensure that microeconomic balances, including foreign exchange rates are not fluctuated, according to the Central Bank Governor.

The SBV Governor highlighted several ongoing issues in the gold market, with a persistent price gap between domestic and international prices, market instability driven by psychological factors and expectations, potential risks to monetary and foreign exchange markets, and limited incentives for citizens to convert gold holdings into VND for investment in business and production activities.

As a result, the domestic-international gold price gap has narrowed from VND15 – 18 million ($593 – 711) to just VND3-4 million per tael, she said, attributing the achievements to auctions and direct sales through State-owned banks and the Sai Gon Jewelry Company Limited (JSC).

According to her, along with continuing consideration of rational intervention to stabilize the market and deliver on the goals of the monetary policy, the central bank will join hands with competent ministries and sectors to step up market supervision and strengthen the State management over the market to ensure economic security, financial security, national monetary security, and social order.

The central bank has directed relevant credit institutions and licensed businesses to strictly comply with legal regulations on gold trading activities and maintain close coordination with media outlets and relevant agencies to provide information related to the market management policies and regulations, aiming at stabilizing public sentiment and promoting social consensus, the Governor added.

On the issue relating to establishing a gold exchange in Vietnam raised by a Deputy to the National Assembly, the SBV Governor underscored the need for thorough assessment.  

She said that while some countries, such as China with its prominent Shanghai Gold Exchange, have established successful gold trading platforms, others in the region have opted not to.

She noted that a gold exchange could enhance market transparency and improve accessibility for individuals and businesses, but Vietnam, as a gold importer, needs to make careful consideration regarding infrastructure investment for a gold exchange.