During a Q&A session with Governor Nguyen Thi Hong of the State Bank of Vietnam, many National Assembly representatives voiced concerns regarding gold market management.

Stabilizing the Vietnamese dong and discouraging gold hoarding

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Deputy Duong Khac Mai. Photo: National Assembly

Deputy Duong Khac Mai from Dak Nong expressed concerns about the gap between domestic and international gold prices, noting that Vietnam’s gold market remains unstable, lacks sustainability, and carries risks that affect the foreign exchange and monetary markets.

“Gold prices are reaching record highs, making those who want to buy gold dizzy and regulators deeply concerned. Governor, what measures will help reassure people of the stability of the Vietnamese Dong, encouraging them to refrain from hoarding gold and instead invest in the country’s development?” Mai asked.

Acknowledging the current instability in the gold market, Governor Nguyen Thi Hong pointed out that the volatility in gold prices is a global issue. “Before central banks intervened, international gold prices were around 2,300–2,400 USD per ounce. Now, they have risen to over 2,700 USD per ounce. Since the start of the year, international gold prices have increased by more than 50%,” she explained.

The Governor confirmed that the State Bank of Vietnam’s interventions in the gold market aim to narrow the gap between domestic and international prices. She noted that when this gap is significant and demand rises—as seen recently—smuggling becomes more likely.

“For this reason, we intervened, reducing the domestic-international price difference to around 3–4 million VND per tael,” Governor Hong explained.

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Governor Nguyen Thi Hong.

The Governor also emphasized that gold prices are influenced by external global economic factors, fluctuating as they are impacted by international financial market variables such as interest rates, exchange rates, and oil prices.

“We will continue to closely monitor market developments and consider appropriate interventions based on our monetary policy objectives,” she added.

In addition to reviewing Decree 24 to introduce suitable measures, the Governor reaffirmed the State Bank’s anti-“goldization” policy, which aims to make gold less attractive as an investment or speculative asset.

“When it comes to the tradition of buying gold as a means of saving, the State Bank will assess the situation and implement measures to responsibly supply gold to the market,” she noted.

Discouraging gold hoarding

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Representative Tran Thi Thanh Huong from An Giang.

Representative Tran Thi Thanh Huong from An Giang raised a question about the fragmented oversight of the gold market, with multiple ministries and agencies involved. She suggested that lack of effective coordination has limited regulatory efficiency and called on the Governor to outline potential solutions for improvement.

Governor Hong responded that investing in gold leads to “idle assets,” noting that discouraging gold hoarding is essential to Vietnam’s anti-“goldization” strategy. “When people hold large amounts of gold, their money is essentially frozen,” she said.

However, if these assets are converted to Vietnamese Dong, they can be channeled into business ventures, bank deposits, or investments in stocks and bonds, benefiting economic production and business growth.

Therefore, the Governor explained, Decree 24 (regulating gold trading) is designed to combat “goldization” by discouraging people from holding gold, especially high-value gold bars.

This policy led the State to monopolize the production, import, and export of gold bars, as well as tightly regulate their trading activities.

“Currently, we are reviewing and summarizing Decree 24 in line with the concerns raised by National Assembly representatives, and we will design solutions to further limit gold hoarding,” Governor Hong concluded.

Quang Phong, Thu Hang, Tran Thuong