Vietnamese Dong's Decline Fuels Gold Investment Surge in June 2025

As Vietnam's currency continues its downward spiral against the U.S. dollar, investors are turning to gold in droves. With the Vietnamese Dong (VND) depreciating by 1.85% year-to-date (YTD) and inflation surging to 3.12% in April, physical gold has emerged as a critical hedge against economic uncertainty. This article explores why gold prices in Vietnam have risen sharply—reaching 73.64 million VND per ounce in June 2025—and how investors can capitalize on this trend.

The Perfect Storm: Currency Weakness and Inflation

The VND's decline has been relentless. By June 2025, its mid-point exchange rate had slipped to 24,994 VND/USD, a 1.85% drop since the start of the year. This depreciation has amplified the cost of importing gold, contributing to a +33.62% YTD rise in gold prices (from 54.97 million VND/oz in early 2024 to 73.64 million VND/oz). Meanwhile, domestic inflation has soared, with core inflation hitting a 16-month high of 3.14% in April.

Why Gold is the Safe Haven of Choice

Gold has historically served as a bulwark against currency instability and inflation. In Vietnam, these dynamics are now colliding with geopolitical risks—such as the Ukraine war and U.S.-China trade tensions—to push gold prices higher. The global gold price, which averaged $3,415 per ounce in June 2025, has risen 32% YTD, but Vietnam's domestic prices carry a premium of +15.96 million VND/tael over global benchmarks due to import duties and refining costs.

Saigon Jewelry Co. (SJC): A Gateway to Affordable Gold Ownership

Investors seeking to capitalize on this trend should look to Saigon Jewelry Co. (SJC), Vietnam's leading bullion provider. SJC offers 24K gold bars and coins at premiums 10–15% below global levels, making physical gold accessible even for smaller portfolios. A 100-gram SJC gold bar, typically priced between 10–12 million VND, provides liquidity and storage simplicity.

The strategic advantage here is clear: SJC's products allow investors to own gold at 5–10% lower premiums than competing global benchmarks, while the metal's intrinsic value continues to rise. With the dong weakening and inflation eating away at fiat currency returns, SJC's offerings are a pragmatic hedge.

The Case for Allocation: 5–10% of Portfolios to Physical Gold

Investors should consider allocating 5–10% of their portfolios to physical gold through SJC's products. This allocation balances risk and reward, especially as:
1. Currency Devaluation: The VND's decline ensures that gold's local price will remain elevated.
2. Inflation Hedge: Gold's +33.62% YTD gain outpaces Vietnam's inflation by a factor of 10.
3. Geopolitical Risks: Central banks globally are buying gold aggressively, with Asian and Middle Eastern institutions projected to purchase 900 tonnes in 2025 alone.

Risks and Considerations

While gold's rise is compelling, investors should monitor potential headwinds:
- Central Bank Policy: A surprise rate hike by the U.S. Federal Reserve could temporarily depress gold prices.
- Storage Costs: Physical gold requires secure storage, though SJC's institutional partnerships mitigate this risk.
- Global Gold Fluctuations: Volatility in global markets may impact local prices, though Vietnam's premiums buffer against minor dips.

Conclusion: A Hedge for the New Normal

Vietnam's economic landscape in 2025 is defined by a weakening currency, rising inflation, and geopolitical instability—conditions that make gold indispensable. With SJC providing affordable access to physical gold and prices poised to climb further, now is the time to act.

Allocate a portion of your assets to gold bullion, and let it shield your portfolio against the storm of currency depreciation. As J.P. Morgan forecasts suggest, gold could hit $4,000/oz by mid-2026, but even without such a surge, its role as a hedge remains unshakable.

Invest wisely—gold is the ultimate insurance policy in turbulent times.