Brian Jeffrey
In a recent Q&A session, Governor Nguyen Thi Hong of the State Bank of Vietnam addressed the National Assembly representatives’ concerns regarding the management of the gold market.
Deputy Duong Khac Mai from Dak Nong highlighted the disparity between domestic and international gold prices, warning that the Vietnamese gold market is volatile, unsustainable, and could disrupt foreign exchange and monetary stability.
“With gold prices soaring to unprecedented levels, what steps can we take to instill confidence in the Vietnamese Dong and dissuade citizens from stockpiling gold, thereby encouraging investment in local development?” Mai inquired.
Governor Nguyen Thi Hong acknowledged the current instability in the gold market, explaining that fluctuations in gold prices are an issue faced globally. “Prior to central bank actions, international gold prices were around 2,300–2,400 USD per ounce, now exceeding 2,700 USD. Since the year’s onset, prices have surged over 50%,” she detailed.
The Governor noted that the State Bank of Vietnam’s interventions are focused on decreasing the discrepancy between domestic and international prices, especially given the recent increase in demand which has heightened the risk of gold smuggling.
“Consequently, we worked to reduce the difference to approximately 3–4 million VND per tael,” Governor Hong explained.
She also pointed out that gold prices are influenced by various global economic factors, which fluctuate based on international financial metrics like interest rates, currency exchange rates, and oil prices.
“We intend to keep observing market trends and will adapt our interventions according to our monetary strategy,” she assured.
In light of this, the Governor confirmed the review of Decree 24 to implement measures that align with current market dynamics while reinforcing the State Bank’s strategy to mitigate gold as a speculative investment.
“Regarding the cultural practice of purchasing gold for savings, the State Bank will monitor the situation and formulate applicable measures to responsibly manage gold supply in the market,” she stated.
Representative Tran Thi Thanh Huong from An Giang pointed out the lack of centralized oversight in the gold market, which involves multiple ministries and agencies. She emphasized the necessity for improved coordination to enhance regulatory efficiency and requested the Governor’s insights on potential solutions.
In response, Governor Hong mentioned that investing in gold contributes to “idle assets” and stressed the importance of reducing gold hoarding as part of Vietnam’s anti-“goldization” policy. “When individuals hoard gold, their funds are effectively immobilized,” she expressed.
However, by converting gold into Vietnamese Dong, people can redirect their resources towards business opportunities, bank deposits, or stock and bond investments, which could support economic growth.
To address this, the Governor explained that Decree 24 focuses on minimizing “goldization” by discouraging the accumulation of gold, particularly high-value gold bars.
This policy has positioned the State as the primary entity responsible for the production, import, and export of gold bars while tightly regulating their trade.
“Currently, we are in the process of reviewing Decree 24, taking into account the concerns of National Assembly representatives, and will implement measures to reduce gold accumulation further,” Governor Hong concluded.
Quang Phong, Thu Hang, Tran Thuong
