The surge in gold smuggling activity arises from a confluence of factors, including a shortage of official supplies and heightened flight-to-safety demands amid economic challenges. Economists highlight that the necessity for dollars to finance gold imports has exacerbated pressure on the dong, resulting in its depreciation and complicating the central bank’s efforts to manage inflation.
For the Vietnamese government, stabilizing the gold market has emerged as a critical priority. Smugglers exploit the elevated local prices of gold, infiltrating the market with the precious metal. This influx of smuggled gold contributes to distortions in exchange rates and undermines the strength of the dong, thereby detrimentally impacting the economy.
Top authorities, including Prime Minister Pham Minh Chinh and members of the National Financial and Monetary Policy Advisory Council, have emphasized the urgency of finding effective solutions to combat this pervasive issue.
