Domestic gold prices soar 84%, far exceeding global increases

Over the years, Vietnam’s gold market has remained highly sensitive. Price volatility, gaps exceeding VND 20 million per tael compared to global prices, unbalanced supply and demand, and widespread unofficial trading have created a non-transparent, risky environment that harms consumers and businesses alike.

While global gold prices have risen 62% compared to 2024, domestic prices have jumped 84%, fueling speculation and hoarding behavior that complicates monetary and exchange-rate management and impacts macroeconomic stability.

In response, the Government issued Decree No.232/2025/NĐ-CP, amending Decree No.24/2012/NĐ-CP to gradually improve the legal framework for gold business activities and strengthen market oversight.

In effect since October 10, 2025, Decree 232 marks a turning point for Vietnam’s gold market. It ends the State’s monopoly on bullion production, allowing the State Bank of Vietnam (SBV) to license qualified enterprises and commercial banks to produce, import, and export bullion and raw gold.

Transactions worth VND 20 million or more per day must now be made via bank transfers, enhancing traceability and reducing informal trade.

However, one month after implementation, some problems persist such as long queues to buy gold, limited supply from licensed dealers, and large domestic-international price gaps reflecting ongoing adjustments during the decree’s rollout.

Vu Hung Son, Chairman of Bao Tin Manh Hai Gold & Jewelry JSC and Secretary-General of the Vietnam Gold Business Association, noted that for 13 years, gold enterprises have lacked access to officially imported raw materials.

“Without a clear import mechanism, businesses rely on floating sources, accepting higher risks just to maintain production and market supply,” he said.

This restricted supply pushes domestic prices up, while consumers struggle to buy gold. Companies must now invest in advanced equipment to verify quality, marking a paradox for a high-value industry that still faces systemic inefficiencies.

Building a transparent and resilient gold market

According to Assoc. Prof. Dr. Nguyen Thanh Loi, Editor-in-Chief of the Kinh te & Do thi Newspaper, the introduction of Decree 232 marks a critical milestone in refining the legal framework for a unique market situated at the intersection of investment, reserve assets, risk-hedging tools, and jewelry craftsmanship.

The regulation is expected to enhance transparency, reduce price disparities, strengthen fair competition, stabilize the macroeconomy, curb inflation, and reinforce public confidence in the Vietnamese dong.

“An effective gold market must harmonize three pillars: institutions, market infrastructure, and participant behavior,” Dr. Loi emphasized.

He also raised key policy questions, such as how to establish transparent pricing, ensure fair competition, and align gold trading with tax, accounting, and financial market regulations while addressing public psychology and confidence in national currency.

Dr. Le Xuan Nghia, Member of the Prime Minister’s Advisory Council and former Vice Chairman of the National Financial Supervisory Commission, suggested that the SBV should permit controlled gold imports to increase supply and narrow the domestic-international gap.

“Without official imports, smuggling will rise, evading taxes and distorting the forex market,” he warned.

Experts also called for a national gold exchange platform to enhance transparency, reduce price manipulation, and protect investors, while some proposed taxing individual income from gold trading to limit speculative activities.

Officials from the Hanoi Tax Department, Market Surveillance Agency, and Customs Department shared perspectives on strengthening supervision, combating smuggling, and curbing off-market transactions to ensure the gold market develops in a transparent and sustainable direction.