Governor of the State Bank of Vietnam Nguyen Thi Hong (Photo: VNA)

The domestic-international gold price gap has narrowed from 15 – 18 million VND (593 – 711 USD) to just 3-4 million VND per tael, she said, attributing the achievements to auctions and direct sales through State-owned banks and the Sai Gon Jewelry Company Limited (JSC).

Hong said 22 banks and 16 businesses, with branches and trading locations established in many localities, have been actively trading gold bar and some traders’ reluctance to purchasing gold could be due to high volatility of the market.

The SBV will continue to keep close tabs on the market developments to outline policies aimed at stabilising the market, she stated, elaborating that as Vietnam is not a gold-producing country, the bank’s interventions entirely depend on imports.

Regarding the establishment of a gold exchange, Hong underscored the need for through assessment for the work. She said that while some countries, such as China with its prominent Shanghai Gold Exchange, have set up successful gold trading platforms, others in the region have opted not to.

Although a gold exchange could enhance market transparency and improve accessibility for individuals and businesses, the country's position as an importer requires careful consideration regarding infrastructure investment, she stated./.