HÀ NỘI — Vietnamese gold prices soared to historic highs on Wednesday, defying expectations of a cooling market after the Government issued Decree No. 232/2025 to end the State monopoly on gold bullion production and trading.

At the Saigon Jewellery Company, SJC-branded bullion reached a record selling price of VNĐ128 million (US$4,865) per tael, while the buying price climbed to VNĐ126 million on Wednesday morning — VNĐ300,000 higher than the previous day’s close.

The sharp increase came just hours after the Government released the long-awaited decree abolishing the State monopoly on gold bars. The new policy allows qualified entities to import, export and produce gold bullion, aiming to improve market supply and reduce the gap between domestic and international gold prices.

Under the decree, bullion production is now classified as a conditional business, requiring strict prerequisites. Eligible businesses and banks will be granted licences for bullion production if they meet stringent operational and financial standards.

Applicants must hold a valid gold trading permit and meet capital requirements — at least VNĐ1 trillion for businesses and VNĐ50 trillion for banks.

At present, 38 enterprises and financial institutions are licensed to trade gold bars in Việt Nam. However, under the new regulation, only a few players are eligible to apply for bullion production licences, including PNJ, DOJI and SJC.

Vietcombank, VPBank, Techcombank, BIDV, MB, VietinBank and Agribank are among those with capital exceeding VNĐ50 trillion.

This marks a significant shift from a monopoly to a licensing mechanism. The State monopoly was introduced in 2012, when SJC was appointed as the exclusive producer of gold bars. Under the previous regime, domestic gold prices frequently traded well above international benchmarks, which are currently around VNĐ20 million per tael.

According to Nguyễn Thường Lạng of the National Economics University, lifting the monopoly could improve supply, level the playing field for gold suppliers, protect consumer rights, and help stabilise both the gold market and the broader macroeconomy.

The new regulation will impact domestic gold prices, but trends will depend on numerous factors, he added.

A former lecturer at the Academy of Finance, Đinh Trọng Thịnh, noted that changing how the gold market is managed is critical, as the previous mechanism had long become outdated.

However, market liberalisation must align with goals such as improving efficiency, preventing the 'goldisation' of the economy and ensuring that gold functions not only as a store of value but also as a financial instrument for growth.

Gold market analyst Trần Duy Phương said that given domestic prices recently hit record highs—with SJC trading around VNĐ20 million above global levels—the new regulation is expected to cool the market.

“This move is expected to undermine expectations of ongoing scarcity in SJC gold bars,” he said.

“It is highly likely that the rapid increases and repeated peaks in domestic gold prices will stop, and the gap with global gold prices will gradually narrow.”

However, he warned that supply effects may not be immediate.

“We’re still waiting for follow-up regulations and circulars. Even then, it takes time for businesses to import raw gold and begin production,” he said.

In the short term, the new regulation may influence investor psychology. Some may delay new purchases while current holders could look to sell and take profits, he suggested.

“Only when detailed regulations are issued will domestic prices begin to align with international trends,” he added.

Phương expects the price gap to narrow from around VNĐ20 million to VNĐ14–15 million, whereas a reasonable gap would be about VNĐ5–7 million per tael.

On Kitco, spot gold is trading at US$3,373.80 per ounce bid and $3,375.80 ask at midnight local time, down 0.55 per cent after hitting a two‑week high of $3,382.19 on Tuesday.

Markets were jolted by reports that former President Donald Trump threatened to fire Federal Reserve Governor Lisa Cook over alleged mortgage fraud, raising concerns over central bank independence and prompting investors to seek safe‑haven assets like gold.

New proposal on gold export tariff

The Ministry of Finance has proposed reducing the export tax rate on gold jewellery products from the current 1 per cent to zero, to reduce costs for domestic manufacturers and promote industry development.

The proposal is outlined in a draft decree on export and import tariffs, which has recently been made public for comments.

The tax cut is proposed to apply to four HS codes: 7113.19.10, 7113.19.90, 7114.19.00, and 7115.90.10, which registered export revenue of $332.2 million in 2024, down 4.95 per cent.

The ministry estimates that the tax cut could reduce State budget revenue by $3.3 million per year.

The ministry said that domestic manufacturers are under significant pressure from limited raw gold supply and high domestic prices, which have pushed up production costs and made products less competitive.

According to the World Gold Council (WGC), global gold prices surged 28–30 per cent in the fourth quarter of 2024 – the sharpest increase since 2010 – and continued to climb into 2025, with prices up 38–39 per cent year-on-year in the first quarter.

In the domestic market, data from the General Statistics Office shows that the average gold price index rose 37.4 per cent in the first half of the year. Jewellery prices followed a similar trend.

Meanwhile, global demand for gold jewellery fell 11 per cent in 2024 and by 21 per cent in the first quarter of 2025. Domestic demand dropped 13 per cent – the largest decline among ASEAN countries.

To support the domestic gold jewellery sector, the Government introduced zero import tax on unprocessed gold in 2023 to lower input costs for domestic manufacturers.

However, no company has been granted import licences for raw gold for jewellery production since 2012, according to the State Bank of Việt Nam. — VNS