Page 31 - Bullion world volume 4 issue 6 june 2024

Bullion World | Volume 4 | Issue 6 | June 2024

Vietnam’s Bold Moves to Rein in Gold

Market Manipulation and Smuggling

Mr Spencer Campbell, Director, SE Asia Consulting Pte Ltd, Singapore

Government's Crackdown on Gold Market
Manipulation
The Vietnamese government is taking decisive action
to address soaring gold prices and the widening gap
between domestic and international rates. Alarmed by
potential manipulation and illicit activities, authorities
have launched a comprehensive investigation into the
gold industry. Deputy Prime Minister Le Minh Khai has
mandated an immediate probe into the operations of all
key players in the market. The State Bank of Vietnam
(SBV) has been tasked with scrutinising gold production
and trading enterprises, retail stores, and distribution
agents, leaving no stone unturned.

Measures to Tighten Control and Ensure Transparency
To restore order and transparency, the government has
introduced a series of measures aimed at tightening
control over the gold market. By the end of the second
quarter of 2024, all gold transactions will be required
to use electronic invoices. This move is expected to
enhance market monitoring, facilitate the tracking of
suspicious transactions, and identify potential violations. Mr Spencer Campbell
In collaboration with other agencies, the SBV will
intensify oversight, enforcing existing regulations more
Implementing Prime Minister's Directions on
strictly and introducing new measures to deter illegal Managing Gold Market
practices and protect consumers.
On May 12, 2024, the State Bank of Vietnam (SBV)
met with the Ho Chi Minh City (HCMC) People's
Committee to implement the Prime Minister's
directions on coordinated gold market management.
Key attendees included SBV Deputy Governor Pham
Thanh Ha and HCMC Vice Chairman Nguyen Van
Dung, along with leaders from the Police Department,
Market Surveillance Authority, and Department of
Information and Communications.

The meeting resulted in agreed measures to manage
the gold market effectively, prevent price manipulation,
and enhance digital transformation in monitoring. This
includes mandatory e-invoices for all gold transactions
and strict implementation of anti-money laundering
regulations.
The SBV will also continue organizing gold bullion
auctions to stabilize the market, urging caution among
the public amid international price fluctuations.

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