The State Bank of Vietnam’s (SBV) monopoly over the import and export of gold bars has come under scrutiny at the National Assembly as the gap between domestic and world gold prices has widened, VN Express is reporting. Domestic gold prices of late have typically been US$500 to US$600 higher per tael that world prices.
Note: A deregulated gold market would increase competition and may lower the price, however, the issue is not only with supply. The perceived safety of gold as an asset is also driving up demand as interest rates reach new lows and the economy falters for a myriad of reasons–lower exports, a stronger US dollar, and fluctuating fuel prices on the back of global geopolitical instability to name just a few.