Who is behind interest group opposing Vietnamese Prime Minister in effort to stabilize gold prices?

The General Department of Taxation recently proposed that the State Bank research and submit to competent authorities to issue regulations requiring payment – not using cash, for gold trading transactions.

Public opinion is skeptical that this is a proposal of the gold interest group, which has been manipulating the gold market in Vietnam for a long time.

Cong An Nhan dan newspaper reported on May 4 that “Recommend not to buy or sell gold in cash.” The newsletter said that in order to tighten tax management for the gold and silver business, the General Department of Taxation has proposed to the State Bank to study and submit to competent authorities and regulations requiring non-cash payments for gold business transactions, and at the same time, issue regulations to control these transactions.

This petition has caused social networks and political forums of Vietnamese people at home and abroad to conduct hot discussion. Most of the comments expressed disagreement. According to this recommendation, when people save money in cash and want to buy gold, they are required to go to the bank to open an account, then deposit this amount of money, and then have to do so for gold buying or selling transactions.

Many doubts that recommendations mentioned above were manipulated by gold interest groups. This group, which has been manipulating the gold market, now wants to use the authorities to make the gold market even more out of control.

Meanwhile, Prime Minister Pham Minh Chinh has repeatedly requested government agencies to stabilize the gold market. But, the gold market continues to dance, as if challenging the Government.

The most obvious manifestation of gold interest groups is the failure of the State Bank’s gold auctions, which are continuously canceled for many different reasons. Moreover, the more the Prime Minister issued directives to stabilize, the more gold prices skyrocketed. Now, SJC gold bars have reached the mark of VND87 million per tael – something that has never happened before.

Public opinion believes that, around the world, countries only encourage reducing the use of cash. No country has ever issued a regulation that prohibits the purchase and sale of a certain item in cash, in a certain line of business.

And in fact, there is no business in the world that is subject to such non-cash payment regulations.

So, why does the Ministry of Finance want to apply that bad thing in the field of gold trading?

Meanwhile, there are opinions saying that there are many signs that the state is tightening gold management. Customers buying and selling gold are required to sign and write their full name. Some shops even require you to present your Citizen Identification Card when buying gold. Not to mention the case when people urgently need money and have to sell gold. If they don’t have a bank account, how can they receive payment? Then how to withdraw money?

There are many angry opinions saying “The government should quickly ban gold trading.” Or all transactions, buying, selling, and exchanging gold must go through an intermediary called “gold credit.” That way, the State will firmly grasp the total amount of gold accumulated among the people, to mobilize according to the policy of “there is still a lot of gold kept by the people.”

According to Dr. Ngo Tri Long – Economic expert, former Deputy Director of the Price Market Research Institute under the Ministry of Finance, said that the General Department of Taxation’s proposal has low feasibility. Because, not 100% of people who buy gold are for investment, and buy in large quantities.

Dr. Long commented that this proposal is only suitable for those who buy gold for investment and trading in large quantities.

Huynh Trung Khanh – Vice Chairman of Vietnam Gold Business Association, commented:

“If we use mandatory administrative measures in non-cash payment for gold bar transactions to control the gold market, it will go “underground.” Furthermore, the business of gold and fine art jewelry is moving towards an unconditional business, so the proposal not to use cash in gold trading transactions is a contradiction.”

Public opinion says that, with the mindset of “what cannot be managed, it is banned” and Vietnamese state leaders always think that there is still a lot of gold in the people, so they always find every way to rob the people. They started forcing people to declaring and managing the origin of gold, and now they want to ban cash transactions.

This is the Vietnamese government’s “process” of robbery. /.


Tra My – Thoibao.de