Speaking to Thanh Nien this afternoon, May 29, Vice President of the Vietnam Gold Business Association Huynh Trung Khanh said that the recent sudden stop of the gold auction by the State Bank was probably due to the fact that the auction results did not meet expectations.

"Summing up more than 1 month since the first gold auction, the amount of gold sold is also quite large, but the difference between the price of Vietnamese gold and the world gold price has not decreased, but even increased. Before the auction, the price difference was about 10 million VND/tael, but now after 9 auctions, the price difference is up to 16 - 17 million VND/tael."

Regarding the new market stabilization solution that the State Bank will implement from June 3, which is that the State Bank will sell gold directly to four state-owned commercial banks to supply the market, according to Mr. Khanh, the form is different from bidding but is still a solution to contribute to increasing supply for the gold market.

The recent gold auctions were unsuccessful, the key factor was price. Therefore, implementing a new solution, the most important thing is still the price and the quantity sold, whether there is a quantity limit or not.

"The closer the gold price to the final buyer is to the world price, the faster the gap between Vietnam's gold price and the world gold price will be reduced. For example, the world gold price is currently around 72 - 73 million VND/tael. The State Bank sells gold directly to 4 state-owned commercial banks, then the gold is sold to the people for around 80 million VND/tael, which is a great result," said Mr. Khanh.

Gold expert Tran Duy Phuong analyzed that the State Bank stopped gold auctions because the auctions were ineffective. Although gold auctions have somewhat relieved the market's "thirst" for gold, they have not met the State Bank's wishes as well as the Prime Minister's direction to reduce the gap between domestic and world gold prices to a reasonable level.

Assessing the new moves to stabilize the gold market from the State Bank, Mr. Phuong emphasized: "With the potential and determination of the State Bank as well as the direction of the Government, the price of SJC gold at about 80 million VND/tael is within reach."

Some economic experts note that there must be clear and strict regulations on how banks sell gold to people after buying gold from the State Bank.

It is expected that the State Bank will set a reasonable price based on the calculation of the world gold price, so that it is as close to the world price as possible. As for commercial banks selling gold to the people, the State Bank needs to stipulate a certain price range for commercial banks to comply with, similar to the exchange rate range with the USD.

In the long term, gold imports must still be allowed.

In the long term, according to Mr. Khanh, the fundamental solution to stabilize the gold market is to remove the monopoly and allow gold imports.

Speaking to Thanh Nien , Mr. Shaokai Fan, Director of Asia-Pacific region (excluding China) and Director of Global Central Bank at the World Gold Council, said that Vietnam does mine gold but the output is not enough to meet domestic demand.

Stressing that to increase supply, people must either rely on gold imports or sell the gold they are holding, according to Mr. Shaokai Fan: "In the current strong buying trend, the only way is to import gold to meet domestic demand."

When talking about the issue of gold market management, economic expert Ngo Tri Long reiterated his views that he has shared with the press many times: the important solution that needs to be done quickly is to amend Decree 24 on gold trading management.

Management thinking must change. The State Bank only performs its functions properly, creating a level "playing field" in accordance with international practices. According to the expert, there must be many gold products, avoiding a single brand. In addition to physical gold, attention must be paid to gold certificates, using derivative instruments...