PM Pham Minh Chinh (middle) speaks at the meeting. (Photo: VNA)

Prime Minister Pham Minh Chinh has directed the State Bank of Viet Nam (SBV) to intensify oversight of the gold market, aiming to narrow the gap between domestic and global gold prices to a slim 1-2% margin, as part of a broader effort to stabilise the economy, tame inflation, and spur growth.

Chairing a working session in Ha Noi on May 24 between permanent Government members and representatives of ministries, agencies, associations and businesses, PM Chinh called for a crackdown on shadowy practices like market manipulation, gold smuggling, and other illicit activities.

The PM stressed that it is necessary to have a solution to increase supply and choke off speculative demand. To boost supply, he called for breaking the stranglehold of monopolies and opening gold trading to more enterprises. On the demand side, he advocated using taxes, fees, and other fiscal tools to deter speculative buying.

Delegates at the meeting (Photo: VNA)

He demanded rigorous inspections and audits to root out smuggling and profiteering, and a fast-tracked revision of Decree 24, the aging framework governing the gold market, to bring it in line with current economic realities. By June, a national gold market database must be put into operation, the leader noted.

For long-term stability, he tasked the SBV, the Ministry of Finance, and other agencies with creating a business environment so vibrant that people might choose entrepreneurship over hoarding gold. A gold exchange platform, he suggested, could formalise trading under transparent rules.

To fortify the market’s integrity, he proposed a separation between the State’s regulatory role and commercial gold trading, a move to curb conflicts of interest. He also saw opportunity in the luster of gold jewelry, advocating for its production as a way to spark industry growth and create jobs.