Central bank's HCMC office wants gold trading in cash restricted

A 2012 decree, which allows only the central bank to import and export gold and make bullion, has proven effective in hampering the "goldization" of the economy, it said.

It was referring to the hoarding of gold and using it in transactions instead of the country’s currency due to concerns over depreciation.

But a government monopoly on gold supply has some shortcomings, such as creating a large gap between domestic and global prices, it said. In Vietnam, 24-carat gold costs VND81.4 million ($3,445) for a tael of 37.5 grams as against the global price of $2,155, a gap of around $444.

It also said the central bank should limit cash purchases of gold to prevent money laundering.

There should be a policy to regulate retail prices since jewelry businesses determine their own prices and might seek "benefits".

The government has instructed its bodies to inspect the gold market and related agencies to ensure local and global prices do not vary.