Vietnam is set to implement major changes to its gold trading policy, with the Prime Minister ordering revisions to Decree No. 24/2012/ND-CP to be completed by June. The reform aims to enable legal gold imports by enterprises, addressing the long-standing supply-demand imbalance in the domestic market.
Currently, under the 2012 decree, the State Bank of Vietnam (SBV) holds exclusive rights to gold bar production and raw gold imports, effectively freezing gold imports for the past 13 years. This has forced businesses to source gold from unofficial, unregulated markets, exposing them to significant legal and financial risks.
The Vietnam Gold Traders Association chairman, Dinh Nhu Binh, said the association has long advocated allowing gold imports to ensure a stable and legitimate supply of raw materials. He added that modern technology can effectively track and control imported gold, its use, consumption, and inventory.
The shortage in Vietnam’s gold market has created large price gaps between domestic and international gold—sometimes up to 20 million VND per tael—fueling speculation, smuggling, and price manipulation. Economist Le Xuan Nghia noted that reliance on unofficial sources has caused market instability and regulatory challenges.
Experts widely agree that controlled gold imports are essential for price stabilization. Although gold is tied to foreign exchange reserves, they argue qualified enterprises should be allowed to import under strict controls and clear standards.
They suggest the central bank should transition from being a direct market participant to a market regulator. Economist Nguyen Tri Hieu proposed delegating import and production rights to reputable companies under SBV supervision, with import quotas adjusted transparently based on market demand.
This approach could curb smuggling, prevent foreign currency loss, and restore market confidence. Over time, gold would regain its traditional role as a stable store of value rather than a speculative asset.
Nguyen Quang Huy, dean of the Finance and Banking School at Nguyen Tat Thanh University, echoed these views, noting that a healthier market would encourage investment in productive assets like stocks, real estate, and retirement funds, rather than hoarding gold.
Experts emphasize that relaxing import restrictions must be part of a broader framework including anti-money laundering compliance, proper invoicing, tax transparency, and routine inspections.
While concerns exist that easing imports might spike gold demand, clear market management—such as mandatory ID verification during transactions and proper documentation—would prevent gold from being used for illicit purposes.
In an interview with Investment Newspaper, Huang Wenqiang said that speculation, profiteering, and smuggling in Vietnam’s gold market largely stem from the SBV’s import monopoly causing supply shortages.
Le Xuan Nghia said legalizing gold imports would significantly reduce these issues. He added that a regulated and taxed import system would increase transparency, reduce manipulation, and boost government revenue.
The regulatory changes may also encourage businesses to focus more on gold jewelry production and exports, potentially turning gold into a source of foreign exchange rather than consumption.
Nghia noted that annual gold imports worth $3 to $4 billion are not a concern, especially compared to $8 billion spent annually on luxury imports such as wine and cigars.
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