Proposal for early policies to increase gold supply

The association proposes that the Prime Minister soon issue policies and regulations to truly encourage the Vietnamese gold jewelry industry to develop and become a center for high-quality gold jewelry manufacturing and export in the region.

The association requests the Prime Minister to issue breakthrough policy mechanisms and clearly regulate that gold jewelry production and export enterprises can import raw gold based on the volume contracted with foreign suppliers and registered with the commercial bank where the enterprise opens a transaction account. When there is a need to import raw gold, the enterprise only needs to present the import documents to the commercial bank.

According to the association’s estimates, the demand for gold as raw material for jewelry production averages about 50 tons per year, equivalent to about 5 billion USD per year (about 416 million USD per month). After processing and manufacturing, half is used to meet domestic demand, and the remaining half is for export. Thus, 25 tons for export could generate revenue between 3.5 and 4 billion USD.

Therefore, enterprises importing raw gold for jewelry production and manufacturing not only meet domestic market demand but also export, thereby regenerating foreign currency for the country.

Proposal to allow gold jewelry production and trading enterprises to borrow gold from the public

According to the association, importing the above amount of raw gold requires about 5 billion USD per year, averaging about 416 million USD per month, which is very small compared to the interbank foreign exchange market’s average daily trading volume of about 1 to 1.2 billion USD (about 25 to 30 billion USD per month).

This amount is within the capacity of commercial banks and does not significantly affect the foreign exchange market supply and demand.

Regarding the source of raw gold purchased on the domestic market and from the public, the association states that to date, there are no government or regulatory documents or guidelines on purchasing or mobilizing domestic gold as raw material for jewelry production and manufacturing, leading to a waste of domestic resources.

Therefore, the association requests the Prime Minister to issue specific regulations and guidelines on the mechanism and methods for mobilizing and purchasing gold from the public as input raw material for gold jewelry production and manufacturing.

This includes allowing gold jewelry production and trading enterprises to borrow gold from the public at an interest rate agreed upon in accordance with civil law for gold jewelry production.

Global gold prices rose to nearly 4,900 USD per ounce before declining again this evening, April 15. U.S. Treasury Secretary Scott Bessent continues to call on the Fed to lower interest rates. Will gold prices rebound?

Vietnam Gold Business Association

The Vietnam Gold Business Association (VGBA) is a trade organization representing gold and precious metal enterprises in Vietnam. Established to promote cooperation and sustainable development within the industry, it plays a key role in advising the government on gold market policies and regulations. The association works to stabilize the domestic gold market, enhance transparency, and support the interests of its member businesses.

Prime Minister

The term “Prime Minister” refers to the head of government in many parliamentary systems, a role that originated in 18th-century Great Britain with Sir Robert Walpole, who is widely regarded as the first de facto prime minister. The position evolved from the monarch’s chief advisor to a democratically accountable leader, shaping modern governance worldwide. Today, prime ministers typically lead the executive branch, chair the cabinet, and represent their nation both domestically and internationally.

Vietnam

Vietnam is a Southeast Asian country with a rich history shaped by centuries of Chinese influence, French colonization, and the Vietnam War. Its cultural heritage is reflected in ancient temples, traditional festivals, and iconic landmarks like Ha Long Bay and the Cu Chi Tunnels. Today, Vietnam is known for its vibrant cities, diverse cuisine, and resilient spirit that blends tradition with modernity.