Anti-smuggling work has helped stabilize the gold market

The selling price of SJC gold bars differs by over 5 million VND/tael compared to the world price. Photo: ST

Information about the results of banking operations in the first 6 months of the year and implementation of tasks in the last 6 months of the year at the press conference held on July 23, 2024, the SBV said that with the attention and direction of the Government, synchronized solutions of Vietnam State Bank and the coordination of relevant ministries and branches, until now the difference between the domestic SJC gold bar price and the converted world gold price has decreased significantly.

Currently, the selling price of SJC gold bars on the domestic market has dropped sharply, with a difference of over 5 million VND/tael compared to the world price.

Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department (SBV), said that currently, world gold prices fluctuate strongly due to extremely complicated world political and economic factors, so the fluctuation of domestical gold prices is also at a high amplitude. Therefore, Mr. Tuan advised people to be very cautious when participating in buying and selling gold.

In the session on July 23, 2024, the selling price of SJC gold listed at SJC Company and 4 state-owned commercial banks was at 79.5 million VND/tael, down 500,000 VND/tael compared to the previous session, but increased by 2.52 million VND/tael compared to a series of sideways sessions before July 18.

The State Bank of Vietnam affirmed that the initial basic goal of handling and controlling the price difference of SJC gold bars compared to the world gold price within a suitable range which has been achieved.

Answering a question from a Customs Magazine reporter about the impact on gold market management through gold smuggling prevention, Mr. Dao Xuan Tuan, Director of the Foreign Exchange Management Department, commented that the coordination of Departments and agencies following the Prime Minister's direction on stabilizing the gold market has never been better than they are today.

According to Mr. Tuan, currently, many cases related to gold smuggling discovered and handled by the Customs and Police have had a positive impact on the anti-smuggling work in the gold market. Furthermore, functional agencies such as Tax authorities focus on requests for processing invoices, electronic invoices, and documents; or the Police, Customs, Market Surveillance, etc. in fighting crimes related to gold trading activities have provided great support in implementing market policies and stabilizing the gold market.

Regarding the future orientation, the Director of the Foreign Exchange Management Department stated clearly that the State Bank will continue to implement policies and solutions under the direction of the Prime Minister; summarize to synthesize into a new policy, amend Decree 24 on managing gold business activities in the direction of ensuring that the gold market develops stably, sustainably, and closer to the market.

Regarding reports about people still having difficulty buying gold through online registration of state-owned commercial banks as well as SJC Company, Mr. Dao Xuan Tuan said that it is true that this phenomenon exists, but the State Bank has directed banks and SJC Company to have appropriate adjustment solutions.

"According to the units' feedback, in recent days, especially yesterday, July 22, there was a phenomenon of placing orders to buy gold but then not coming to pick up the gold. This proves that market demand has reached a certain level," Mr. Tuan stated.

Regarding reports of people buying interest rates to buy gold, a representative of the State Bank said that they have worked specifically with the police to fight this issue. The State Bank of Vietnam has also directed 4 state-owned commercial banks and SJC Company to promptly respond to take appropriate combat measures.

Also at the press conference, Deputy Governor of the State Bank Dao Minh Tu said that the State Bank is inspecting, examining and handling acts of speculation and manipulation of the gold market so that not only the gold market but also the economy can be more transparent, clearer.