During a meeting with the State Bank of Vietnam (SBV) on 29/4, Prime Minister Le Minh Hung called on the banking sector to establish an effective gold market management mechanism with a realistic roadmap.

According to the Prime Minister, citizens are entitled to hold gold as a commodity or asset. However, the State does not encourage this because it does not create added value for the economy.

"We must minimize the mindset of hoarding and speculating on gold," the Prime Minister emphasized. He added that with a stable macroeconomic foundation, a transparent, predictable legal framework, citizens and businesses will reduce gold accumulation. They will instead shift towards production, business, or depositing money in banks, allowing the government to mobilize resources for growth.

In late January, the government directed the State Bank of Vietnam to promptly complete documentation and consider proposing the establishment of a national gold exchange or trading floor.

The National Assembly has set an economic growth target of 10% or more annually until 2030, aiming for Vietnam to join the top 30 economies by GDP globally. The total capital required for the economy is projected to be approximately 1.7-2 times that of the previous term, with the state budget only covering about 20-22%.

Prime Minister Le Minh Hung acknowledged that the global and regional situations will remain complex, rapidly and directly impacting macroeconomic management. Therefore, monetary policy (exchange rates, interest rates, credit) must be managed to maintain macroeconomic stability, control inflation, and ensure the safety of the credit institution system.

"Macroeconomic stability is the foundation of a house; it must be firmly reinforced before adding floors, renovating, or rebuilding," he stated.

Regarding future tasks, the Prime Minister instructed the State Bank of Vietnam, along with ministries and agencies, to develop operational scenarios for the entire year and for each quarter. The government leader advised the banking sector to manage credit growth flexibly, directing capital towards production, priority sectors, and growth drivers.

The State Bank of Vietnam is tasked with promptly reviewing and amending regulations on exceeding credit limits for strategic national projects. This must be linked to controlling credit quality and evaluating project efficiency. They need to carefully calculate, control, and supervise credit in potentially risky areas, including studying real estate classification to set appropriate limits and encourage the development of social housing and industrial parks.

The SBV, in collaboration with the Ministry of Finance, will revise regulations and implement measures to develop capital markets and an international financial center. This aims to alleviate pressure on the banking system. For example, Decree 153 on corporate bonds needs to clearly define criteria, standards, and conditions, allowing all qualified credit institutions to manage collateral for individual corporate bonds.

Phuong Dung