Vietnam ends state monopoly on gold bar production

Vietnam ends state monopoly on gold bar production

HÀ NỘI — In a significant move to liberalize the gold market, Vietnam has officially removed the state monopoly on gold bullion production. The Government issued Decree 232/2025/ND-CP on August 26, repealing the state's exclusive rights to produce and trade gold bullion, raw gold exports, and imports for bullion production.

The decree introduces a new regulatory framework that allows commercial banks to engage in gold bullion production and trading activities. This shift from a state monopoly to a licensing system is aimed at enhancing transparency and competition in the gold market.

The decree also revises the definition of gold bullion, now requiring it to be stamped into bars, marked with weight and quality, and bearing the trademark of authorized commercial banks. The State Bank of Vietnam (SBV) will oversee the production of gold bullion during specific periods.

Additionally, the decree introduces new payment regulations for gold transactions worth VNĐ20 million (US$758.58) or more per day, mandating these transactions to be conducted via the customer’s and the gold trading enterprise’s accounts at commercial banks. This measure aims to enhance transparency and prevent money laundering.

The removal of the state monopoly has had immediate effects on the gold market. On August 26, SJC gold bars were quoted at VNĐ125.7 million per tael for sellers and VNĐ127.7 million for buyers, marking the highest prices in history [1].

The global gold market also played a role in the domestic price surge. Following Federal Reserve Chair Jerome Powell's statements at the Jackson Hole symposium, global gold prices climbed US$33 per ounce, pushing Vietnam’s domestic gold prices to unprecedented levels [2]. The domestic market responded by recording a record selling price of VND126.6 million per tael for SJC gold bars on Saturday.

This liberalization of the gold market is expected to boost Vietnam's gold industry by increasing competition and attracting more investments.

References:
[1] https://vietnamnews.vn/economy/1724035/gov-to-eliminates-state-monopoly-on-gold-production.html
[2] https://news.tuoitre.vn/gold-prices-surge-after-fed-signals-vietnam-sees-record-domestic-highs-103250823161137289.htm