The gold market after the regulations of Decree 24/2012/ND-CP on the management of gold business activities and some suggestions

Abstract

Gold plays an instrumental role in the world economy in general and Vietnam in particular, even
though it is no longer a currency. In an attempt to stabilize the fluctuated gold market in the early 2000s, the
Vietnamese government issued numerous documents, including (i) regulations on the termination of the
gold trading floor and domestic gold trading accounts, (ii) regulations on the termination of gold mobilizing
and lending activities of credit institutions, (iii) regulations on the management of gold business activities,
(iv) regulations on the sanctions for administrative violations in the field of foreign exchange and gold.
Decree 24/2012/ND-CP, regulations on the management of gold business activities, is supposed to be the
most comprehensive document, which contributes to the restructuring and reorganization of the entire
Vietnamese gold market under the control of the State Bank. This paper analyzes the context of Decree 24
issuance and evaluates the outcomes of Decree 24 application based on the following criteria: (i) restructure
the gold market and put a restraint on the “goldalized” economy, (ii) stabilize the gold price and reduce the
impacts of gold price on the macro-economy, in turn, proposing suggestions regarding the gold market
management in the current context.