A report from VEPR and Think Future Consultancy suggests that instead of relying on large gold imports to stabilize prices, measures such as inspections and electronic invoices could be more effective in managing the gold market. This is particularly relevant to Vietnam, where gold prices have been consistently rising since 2023 and can differ by as much as 20 million VND per tael from domestic to world prices.
Experts believe that the price difference does not solely reflect supply and demand in the market, requiring more than just mass gold imports for price stability. Administrative measures like market inspections, electronic invoicing, and addressing price manipulation can help reduce the price gap without depleting foreign exchange reserves. These measures can deliver immediate efficiency in managing the gold market.
Historical examples show that periods of price stability in Vietnam were achieved without massive gold imports or breaking market monopolies. Electronic invoicing has already been introduced to enhance transparency in small-scale precious metals transactions. Prime Minister Pham Minh Chinh recently emphasized the importance of implementing electronic invoicing in the gold market to ensure compliance and transparency. He also instructed the State Bank to enforce regulations and penalize violations to maintain market integrity.
In the long run, experts suggest considering solutions to eliminate monopolies in the gold market and avoid reliance on foreign exchange reserves for price stabilization. Low interest rates can create asset bubbles, and crowd psychology plays a significant role in driving fluctuations in precious metal prices.
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