In an official dispatch on enhancing the effectiveness of monetary and fiscal policies, Prime Minister Pham Minh Chinh requested the State Bank of Vietnam to lead and coordinate with relevant agencies to strengthen appropriate and effective gold market management measures.
The State Bank is currently seeking feedback on a draft decree amending Decree 24/2014 on gold trading management. The government leader has requested that they submit this revised draft decree before July 15.
In 2014, Decree 24 was issued by authorities with the goal of combating the "dollarization" of the economy. Since then, SJC has been considered the national gold bar brand. The State Bank has not imported gold to produce gold bars, leading to a decrease in the gold supply. This has resulted in frequent imbalances in supply and demand, with domestic prices rising significantly even when global prices see only slight increases.
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Gold bars at the SJC headquarters in Ho Chi Minh City, 3/2025. Photo: Quynh Tran |
Gold bars at the SJC headquarters in Ho Chi Minh City, 3/2025. Photo: Quynh Tran
At a meeting on gold market management on 24/5, in addition to the price difference between domestic and international markets, the prime minister noted that the gold market has recently experienced manipulation, hoarding, and complex smuggling activities. Therefore, he requested a streamlined amendment to Decree 24 and the development of a gold market database.
According to the draft amended decree, the monopoly on gold bar production will be lifted. Instead, the regulatory authority will control the market by granting quotas and import licenses to eligible credit institutions and businesses on a case-by-case basis. Businesses seeking a gold bar production license must have a minimum charter capital of 1,000 billion VND, while banks need 50,000 billion VND.
In the same dispatch, the prime minister requested the State Bank and relevant parties to submit a draft resolution piloting the digital asset market before July 15.
Regarding monetary policy, the regulatory body needs to closely monitor global and domestic economic developments to manage proactively, flexibly, promptly, and effectively. They also need to direct credit institutions to continue reducing costs to lower lending interest rates, supporting production and business.
The prime minister reiterated the request to promote the credit program for people under 35 years old to buy or lease social housing. Last week, the State Bank announced its fourth interest rate reduction for this group, to 5.9% per year. This rate will apply until the end of 2025.
Regarding fiscal policy, the Ministry of Finance was assigned, along with other agencies, to review and assess the impact of US retaliatory tax policies on Vietnam and report to the government before July 15. This is to help policymakers provide timely support to businesses and individuals in affected sectors.
Vien Thong
