Implementing a ban on cash transactions for gold purchases in Vietnam is challenging and unprecedented, experts say. Recently, tax authorities suggested that the State Bank of Vietnam enforce non-cash payments for gold to monitor the market and prevent tax losses.
Huynh Trung Khanh, vice president of the Gold Trading Association and advisor to the World Gold Council in Vietnam, noted that no other country has such a policy. “Even in a large market like China, cash transactions for gold are not prohibited. They encourage electronic payments like digital wallets and QR codes,” he explained. Malaysia and Indonesia follow a similar approach.
Economist Ngo Tri Long pointed out that many gold buyers in Vietnam are elderly or live in rural areas, often lacking the technology for electronic transactions. “Banning cash would be difficult for them,” he said. He suggested that mandating cashless payments for transactions over one tael of gold (37.5 grams) might be more feasible.
Huynh Trung Khanh warned that banning cash payments might not stabilize the market or prices and could lead to illegal transactions. He recommended a survey to understand current transaction methods and suggested a gradual implementation if 90% of transactions are not already cashless.
Some analysts believe non-cash payments would help with tax collection and market oversight. Nguyen Van Duoc, CEO of Trong Tin Accounting and Tax Consulting Company, said the ban is necessary since regulators struggle to monitor gold trading. “Most people buy gold without invoices, making it hard for tax authorities to track the market,” he explained.
Recently, gold prices have surged, reaching historic highs. Last Friday, prices hit VND92.4 million per tael before falling 2.6% due to inventory shortages.
The debate continues on balancing market transparency with practical challenges for consumers and enforcement.
(ref: vnexpress.net)