State Bank of Vietnam takes measures to stablise gold market

At the close of the week, gold ring prices were quoted at up to VND82.75 million (US$3,362) per tael for buyers and up to VND83.45 million per tael for sellers. These represent all-time highs for both buying and selling prices for gold rings.

Throughout the week, gold ring prices continued to reach new record levels.

For SJC gold bars, prices remained stable after last week’s hike, with a buying price at VND81.5 million per tael and a selling price at VND83.5 million per tael.

This marked the highest price level for SJC gold bullion since June 3, when the SBV increased the supply of SJC gold bars through select commercial banks and Saigon Gems and Gold One Member Limited Liability Company.

Local branches of the SBV have been instructed to collaborate with relevant authorities to monitor, inspect and supervise gold trading activities in their regions.

The central bank has also required licensed credit institutions and businesses to strictly comply with legal regulations regarding gold trading activities, particularly concerning invoicing and record-keeping.

Additionally, the Ministry of Public Security, the Ministry of Industry and Trade, and the Ministry of Finance have been asked to enhance inspections and impose strict penalties on illegal activities, including gold smuggling, market manipulation and profiteering, which destabilise the gold market.

Notably, the SBV has organised auctions of gold bars and directly sold gold to four State-owned commercial banks and SJC (Saigon Jewelry Company) to meet demand from individuals.

It has also worked with ministries, especially the Ministry of Public Security, and local governments to maintain public order and ensure the effectiveness of intervention measures.

“Thanks to synchronised measures implemented by the State Bank and effective coordination with relevant authorities, the disparity between domestic SJC gold bar and international gold prices has significantly narrowed, resulting in a stabilised gold market,” SBV stated.

The SBV has also strengthened inspections and monitoring of gold trading businesses to address legal violations and ensure strict adherence to electronic invoicing regulations.

Moreover, it has reviewed and improved the legal framework and policies related to market management and gold trading activities. Measures to combat illegal gold smuggling and trading have been intensified.

According to the SBV, recent inspection activities have strictly followed legal guidelines, ensuring transparency without negatively affecting business operations.

The SBV has issued Inspection Decision No. 324/QD-TTGSNH2 to audit compliance with gold trading laws among six licensed credit institutions and gold trading companies, which account for over 92% of the gold bar trading market.

Furthermore, according to the SBV, the Ministry of Planning and Investment is responsible for regulating and guiding the issuance of business registration certificates for gold trading enterprises.

These companies must declare their capital upon establishment and comply with accounting and invoicing regulations following Decree 24, guided by the Ministry of Finance.

Under the decree, enterprises must prove the origin of their gold in order to prevent fraud and legalise unofficial gold sources.