Recently, the authorities of the southern province of An Giang discovered a smuggling case of up to 51kg of gold. The case is the largest of its kind so far.

According to Duong Anh Vu, a gold industry expert, this volume of gold is worth VND69 billion (over $3 million) and the smuggler could earn VND4 billion (nearly $200,000) of profit. “The profit is obviously very attractive," Vu said.

An advisor for the World Gold Council in Vietnam said that cross-border gold smuggling has existed for decades. Gold mainly comes from Cambodia and China.

Earlier, custom officers detected a smuggling case of 28.5kg at the Noi Bai international airport.

How to prevent smuggled gold

Mr. Nguyen Van Dung, Chairman of the Ho Chi Minh City Jewelry Association, said: "The people's demand for gold jewelry always exists and the output of gold jewelry is rising year by year. Therefore, the demand for raw gold increases as a matter of course. According to the Vietnam Gold Trading Association, the annual demand for raw gold for jewelry production is about 20 tons."

However, since Decree 24/2012 on the management of gold trading was issued in 2012, Vietnam has not imported any material gold bars. Meanwhile, businesses are still producing jewelry products, especially in the peak season (Christmas, New Year, wedding season). That is not to mention some high-tech products which also require raw gold as materials.

Domestic gold prices unusually high

Recently, gold prices in the local market were VND2-3 million/tael higher than the world market. Many experts said that this was an unusual phenomenon and the main reason for the increase in gold smuggling into Vietnam.

However, Mr. Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam, Ho Chi Minh City Branch, said that since Decree 24/2012 governing gold trading activities came into force, the gold market has been stable, without speculation in gold.

"However, the State Bank of Vietnam is still closely monitoring the movement of gold prices in the market and has enough resources to intervene in the gold market when necessary," he said.

The Chairman of the Ho Chi Minh City Jewelry Association said to effectively eliminate cross-border gold smuggling, the State Bank of Vietnam should allow the import of raw material gold through official channels based on the needs of the market and businesses. Once the domestic gold market is connected with the world and the price difference no longer exists, there will be no gold smuggling.

Mai Lan (PL.TPHCM)

Establishment of gold exchange proposed

The Vietnam Gold Trading Association has proposed the establishment of a gold exchange aimed at creating connectivity between global and local gold prices to ensure there is no major price difference and to fight against gold smuggling.