Vietnam Ends 13-Year Gold Monopoly, Opening Bullion Production to Licensed Banks and Businesses

A new rule opens Vietnam's tightly controlled gold market

Vietnam is ending its 13-year state monopoly over gold bar production and opening the market to eligible banks and businesses under Decree 232/2025/ND-CP. The reform introduces competition into a market where domestic prices have sometimes exceeded international benchmarks by more than 30%, while keeping licensing, imports and oversight under the State Bank of Vietnam (SBV).

As of August 29, 2025, the change marks a major departure from the system established in 2012, when the central bank and Saigon Jewelry Company (SJC) held exclusive rights over gold bar production and trading. New producers will be able to enter through a licensing system, with minimum capital requirements of VND 1 trillion for businesses and VND 50 trillion for commercial banks.

Vietnam, described as Asia's third-largest gold importer, imported 55 tonnes in 2024, compared with China's 857 tonnes and India's 803 tonnes. Its smaller market has nevertheless faced a persistent problem: buyers often pay substantially more for gold at home than the equivalent metal costs internationally.

Prime Minister Pham Minh Chinh and financial regulators have recognized that the monopoly model was unsustainable. The government wants greater supply, more transparent transactions and closer alignment with international market standards. Its wider aim is to reduce speculative pressure on the Vietnamese dong while protecting economic stability.

For households, the practical promise is more choice and potentially smaller price premiums. For banks and gold businesses, the reform creates opportunities to produce bullion and import raw gold, provided they meet demanding financial, technical and reporting requirements. The transition will still depend on central bank approvals and import quotas.

Why the old system came under pressure

The monopoly introduced in 2012 was intended to stabilize the gold market and curb speculation. Over time, however, restricted supply and the dominance of SJC helped create a market in which domestic prices could remain far above global benchmarks.

A price premium is the extra amount a buyer pays above a reference price. In Vietnam's case, a premium exceeding 30% meant that the cost of buying gold locally could be much higher than the international value of the metal itself. The gap encouraged smuggling and unofficial trading, weakening the control the monopoly was meant to provide.

SJC became the sole trusted gold bar brand, limiting consumer choice and competition. That position also made it difficult for alternative producers to develop products and win buyers. The new decree seeks to change the structure of supply while preserving government supervision.

Demand has been strengthened by a weakening dong and rising inflation, as people look for a way to preserve their savings. Gold also has an established place in weddings and cultural festivals. These financial and cultural reasons help explain why demand can remain strong even when domestic prices are expensive.

The government's objectives extend beyond cheaper bullion. Officials want a more orderly market, better visibility over transactions and fewer opportunities for unofficial trading. Closer alignment with international standards is intended to make the market more transparent and easier to supervise.

Who can produce and import gold?

Commercial banks and eligible enterprises can apply for licences to import raw gold, produce bullion and trade gold bars. Approval depends on sufficient capital and technical capacity, placing the initial opportunity mainly within reach of larger institutions.

The minimum capital thresholds are VND 1 trillion for businesses and VND 50 trillion for banks. Many small jewelry businesses lack the financial resources needed to obtain import licences, so opening the market will not give every retailer or workshop direct access to imported metal.

The SBV will issue licences, monitor compliance and set import quotas according to economic conditions, monetary policy and market developments. A quota limits how much gold an approved participant can bring into the country. This allows the central bank to manage supply while considering pressure on foreign exchange reserves and the currency.

Licensed banks and enterprises are expected to introduce additional gold bar brands. Economist Nguyen Quang Huy described the change as a historic development, while placing trust in the product at the centre of the transition:

This is a historic milestone for the Vietnamese gold market. The key is not who produces the gold, but whether the product is reliable and transparent.

SJC's established reputation is likely to remain valuable during the early stages. Other producers will need to persuade buyers that their gold meets reliable standards and can be bought and sold with confidence.

Bank payments and traceable gold bars

Gold transactions above VND 20 million, about $760, per person per day must be conducted through bank accounts. The requirement moves larger purchases and sales away from cash and creates a record that regulators can follow.

Licensed businesses must issue electronic invoices and share transaction data with the central bank. Their information systems must connect with the SBV, allowing monitoring in real time and supporting audits. Together, bank payments, invoices and shared records are intended to improve traceability and reduce unofficial trading.

Producers must publicly declare the specifications of their gold bars, including weight, purity and features intended to prevent counterfeiting. Each bar will carry a unique serial number and standardized packaging, with digital records helping to identify it through the trading process.

Independent testing centres will verify compliance through regular checks and audits. Standards covering weight, purity, design and protection against counterfeiting are intended to give buyers a consistent basis for comparing products from different producers.

The SBV will conduct inspections, enforce compliance and adjust import quotas when needed. Economist Nguyen Huu Huan said that opening production must be accompanied by consistent product rules and supervision:

For the market to operate safely and sustainably, the SBV must implement gold bar standardization and rigorous oversight.

For consumers, the intended benefit is a clearer connection between the gold they buy, its declared quality and the records supporting the sale. Those safeguards will matter as unfamiliar brands begin competing with SJC.

Prices rise as the market adjusts

The announcement of the decree was followed by a surge in gold prices. SJC gold bars reached a record selling price of VND 128 million, about $4,865, per tael, while the buying price stood at VND 126 million. The difference between those prices is the gap between what a dealer charges customers and what it pays to buy gold back.

The price increase reflected accumulated demand and uncertainty about how the new rules would work. Consumers and investors face competing incentives: some may postpone purchases in anticipation of smaller domestic premiums, while others may sell to secure gains.

The domestic premium was expected to narrow from around VND 20 million to VND 14 million to VND 15 million per tael. A gap of VND 5 million to VND 7 million was described as a reasonable level over the longer term. These figures are expectations for the transition, rather than a fixed price schedule.

Pham Luu Hung, chief economist at SSI Securities Corp., described the move as a "pivotal shift" from state control toward regulated competition. His assessment was that additional supply and competition should gradually bring Vietnamese prices closer to international levels.

Bloomberg also described the reform as a "pivotal shift," pointing to the potential for more supply, greater efficiency and fewer opportunities for smuggling and unofficial trading. For buyers, the speed of change will depend on how quickly licensed production and imports expand.

Why savers continue to turn to gold

The dong depreciated by 4.37% over the preceding year, while gold prices rose by nearly 33% in local currency terms. Those movements help explain gold's continuing appeal to both individual and institutional investors seeking protection from inflation and currency volatility.

A hedge is an asset held to help protect savings against an unwanted change elsewhere. Someone concerned about a weakening currency may hold gold alongside other assets, because the value of their cash savings and the local price of gold can move differently.

The investment approaches discussed around the reform include holding SJC-certified bullion, exploring digital gold exchanges and combining gold with assets denominated in US dollars. These approaches reflect interest in spreading exposure across different assets rather than relying entirely on one form of savings.

AInvest's investment assessment described the opening in these terms:

Vietnam's gold market liberalization presents a strategic window for investors seeking both protection and growth in a rapidly evolving financial landscape.

Investors still face the possibility of a rebound in the dong, uncertainty over regulation and difficulty buying or selling physical gold quickly at a desired price. A narrower domestic premium also changes the calculation for anyone who bought when the extra amount charged above international prices was much larger.

Vietnamese households' attachment to gold extends beyond investment returns. About 30% reportedly hold gold for traditional purposes, including weddings and the Lunar New Year. The reform seeks to preserve that role while bringing trading and production into a more transparent system.

A trading floor and new financial products are planned

The government plans to launch a national gold exchange in Ho Chi Minh City by mid-2026, alongside gold futures and certificates. The proposed exchange is intended to improve transparency and make trading easier by bringing standardized products into a common market.

A futures contract sets terms for a transaction at a later date. The planned products would provide additional ways to participate in the gold market beyond purchasing and storing physical bars. The stated objectives include better liquidity, meaning a greater ability to buy or sell without difficulty.

The government also envisages a national gold trading floor bringing together standardized products of verified quality. Its role would complement the rules on product specifications, electronic invoices and transaction records.

The main dates and developments are:

• 2012: Vietnam established the state monopoly intended to stabilize gold trading and curb speculation.
• 2024: Vietnam imported 55 tonnes of gold, compared with 857 tonnes for China and 803 tonnes for India.
• August 29, 2025: Decree 232/2025/ND-CP forms the basis of the announced opening to licensed banks and businesses.
• Mid-2026: The government plans to launch a national gold exchange in Ho Chi Minh City, with gold futures and certificates also planned.

The exchange and financial products remain plans as of August 29, 2025. Their development will run alongside the more immediate work of licensing participants and supervising the physical gold market.

What changes for consumers and jewelry businesses?

Consumers are expected to gain access to more brands as licensed banks and enterprises enter production. Competition could give buyers a wider range of products and reduce the extra amount paid above international gold prices.

Electronic payment records, invoices and standardized bars are intended to improve protection against fraud and counterfeiting. Buyers should have more information about the weight and purity of their purchases, while serial numbers and digital records make individual bars easier to trace.

SJC's reputation will continue to shape the transition. Customers familiar with its bars may take time to accept alternatives, even when new products meet official requirements. Other brands will have to build confidence through quality and transparency.

Jewelry manufacturers could benefit if more reliable supplies of raw gold reduce input costs. Limited access to raw metal and high domestic prices have already put pressure on production and eroded export revenues.

The Ministry of Finance has proposed reducing the export tax on gold jewelry from 1% to zero to support competitiveness and industry growth. The proposal would remove that tax if adopted, while manufacturers would still need sufficient raw gold at workable prices.

Small firms face a different challenge from large banks and enterprises: the capital requirements may keep direct import licences beyond their reach. Their experience of the reform will therefore depend partly on how expanded supply reaches the wider jewelry trade.

Competition grows, but the central bank keeps control

The SBV retains the main tools that determine how the market develops: licensing, import quotas, inspections and access to transaction data. Vietnam is moving toward competition within a regulated framework, with the central bank continuing to manage the pace of gold inflows.

Import controls are intended to prevent excessive purchases of foreign gold from placing pressure on the dong or foreign exchange reserves. At the same time, sufficient legal supply is central to the effort to narrow domestic premiums and reduce the attraction of smuggling.

The government expects a more efficient market to reduce speculative pressure on the currency, support financial stability and lower costs for jewelry manufacturers. Closer links with international prices could also make Vietnam more attractive to investors and traders.

Consumers will experience the reform through concrete changes: which bars are available, how much extra they cost above global prices, how purchases are paid for and how easily gold can be sold again. The combination of additional producers and strict supervision is intended to make those transactions more competitive and more transparent.

Key Points

• Decree 232/2025/ND-CP ends Vietnam's 13-year state monopoly framework and opens gold bar production and imports to licensed banks and businesses.
• Minimum capital requirements are VND 1 trillion for enterprises and VND 50 trillion for commercial banks.
• The SBV retains control over licensing, import quotas, inspections and market monitoring.
• Gold transactions above VND 20 million per person per day must pass through bank accounts, supported by electronic invoices and transaction records.
• SJC's selling price reached VND 128 million per tael after the announcement, while its buying price stood at VND 126 million.
• Greater supply is expected to narrow domestic premiums, while new brands must build confidence in their quality and traceability.
• A national gold exchange in Ho Chi Minh City is planned by mid-2026, with futures and certificates also envisaged.
• The Ministry of Finance has proposed cutting the gold jewelry export tax from 1% to zero.