Brian Jeffrey
The State Bank of Vietnam (SBV) has published a report summarizing the enforcement of Government Decree No. 24 concerning gold trading oversight.
As stated by the SBV, both the 2012 and 2023 Price Laws classify gold bullion as exempt from state price regulation or stabilization. Pricing for SJC gold bullion is set autonomously by banks and trading companies, reflecting current market demand and supply dynamics.
Price announcements are made following applicable legal frameworks, and currently, there is no obligation for companies to sell SJC gold at a predetermined price.
In times of constrained supply, firms frequently set higher buying and selling prices. Consumers are at liberty to decide whether to purchase SJC gold or other brands and must accept the accompanying risks and rewards stemming from price changes.
Importantly, although Decree 24 requires the SBV to stabilize the gold market, it does not grant the central bank the authority to interfere with prices established by businesses selling SJC bullion.
Furthermore, Article 16, Clause 3 of Decree 24 details potential interventions by the SBV in the gold market, including:
The export and import of raw gold, as defined in Clause 1, Article 14 of the same decree.
Regulating gold bullion production by determining production quotas, schedules, and methodologies suited to each situation. The costs involved in production are included in the SBV’s operational budget.
Conducting transactions for gold bullion in the local market and implementing gold mobilization initiatives as per directives from the Prime Minister.
