Editor’s Note
This article examines the persistent high price of domestic gold bars in Vietnam, despite recent regulatory changes aimed at liberalizing the gold market. The analysis highlights the ongoing gap between local and international prices, setting the stage for a discussion on the underlying market dynamics and potential future developments.
More than a month after the implementation of Decree 232/2025, which amends and supplements some articles of Decree 24/2012 on the management of gold trading activities—including regulations eliminating the state monopoly mechanism for the production, export, and import of gold bars—the domestic gold market has not seen significant changes. The price of SJC gold bars remains above 150 million VND/tael, which is 20 million VND higher than the world price.
In this context, the State Bank of Vietnam has issued a draft circular regulating the gold positions of credit institutions, which will replace Circular 38/2012/TT-NHNN, and is soliciting feedback.
According to the draft, the State Bank of Vietnam plans to increase the end-of-day gold position limit for credit institutions authorized to produce, import, and export gold bars and raw gold to a maximum of 5% of their equity capital.
For institutions only permitted to buy and sell gold bars, the position size should not exceed 2%, and no credit institution is allowed to maintain a negative gold position.
The State Bank of Vietnam clarified that the purpose of relaxing this position limit is to create conditions for credit institutions to participate more deeply in the gold supply chain, thereby increasing official supply in the market.
So far, eight commercial banks have met the prescribed capital requirements, including: Vietcombank, VietinBank, BIDV, Agribank, Techcombank, MB, VPBank, and ACB. If these banks simultaneously obtain licenses for the production, import, and export of gold bars and raw gold, the amount of gold supplied to the market is expected to be substantial.
Based on equity figures as of the end of September 2025, and assuming a world gold price of approximately $4,000 per ounce and an exchange rate of 26,135 VND/USD, the State Bank of Vietnam calculated that 5% of the equity capital of this group of banks is equivalent to $2.56 billion or approximately 20 tons of gold.
The drafting committee of the aforementioned circular argues that such a volume of gold “is not too large compared to the financial capacity of eligible banks” and is sufficient to ensure adequate supply for the domestic market. This will help narrow the gap between domestic and international gold prices and reduce psychological pressure on investors. Consequently, the gold market will be less dependent on a few select businesses and become more transparent.
This draft circular also closely follows Article 19 of Decree 34/2025 (guiding the implementation of Decree 24/2012 – amended and supplemented by Decree 232/2025). Accordingly, the State Bank of Vietnam will annually determine its total import and export quota based on monetary policy objectives, gold supply and demand, and market developments. Based on this general quota, the State Bank will allocate and adjust quotas for each enterprise and commercial bank according to their prescribed capital, risk management capability, and market stability requirements.
Gold expert Tran Duy Phuong believes that the State Bank’s move to expand eligible participants in the market and increase the gold holding limit to 5% is an appropriate step, especially given the persistently high demand for gold among the public. According to him, the additional 20 tons of gold “is sufficient to meet basic needs and, more importantly, alleviates concerns about gold shortages.”
Speaking to a reporter from Nguoi Lao Dong newspaper, Dr. Can Van Luc, a member of the Prime Minister’s Policy Advisory Council, said that to stabilize the gold market, Vietnam needs to reassess the level of “goldenization” in the economy and accurately evaluate the amount of gold currently hoarded by the population.
He emphasized the need for public and transparent data disclosure to reduce systemic risk and a firm commitment to completely eliminate lending and borrowing relationships involving gold. This is because excessive reliance on this precious metal has repeatedly pushed the gold market into chaos.
According to Dr. Can Van Luc, the key factor in narrowing the gap between domestic and international gold prices is to increase legal supply. When access to gold becomes difficult, the ‘fear of missing out’ drives people to rush to buy it.
In addition to Decree 232/2025, the State Bank of Vietnam is coordinating with relevant ministries and agencies to study the establishment of a national gold exchange. This is considered a crucial step towards resolving the long-standing fragmented and opaque gold market situation.