Vietnam’s gold market is set for sweeping reforms following the State Bank of Vietnam’s (SBV) announcement of regulatory violations among major gold trading institutions and a renewed push for transparency, competition, and modernisation in the sector.
On May 30, the SBV disclosed findings from recent inspections into six prominent gold trading entities: SJC, DOJI, PNJ, Bao Tin Minh Chau, TPBank, and Eximbank. The investigation uncovered widespread breaches, particularly in anti-money laundering protocols, including inadequate customer verification and failure to report large transactions.
Further violations included irregularities in documentation, accounting, and tax compliance, as well as instances of misleading product information used to attract customers, raising concerns about unfair market competition.
As a result, administrative fines were imposed on several key players. Bao Tin Minh Chau received the highest penalty at $105,600, followed by SJC at $85,600, DOJI at $54,600, and PNJ at $3,600.
Call for Systemic Reform
Party General Secretary To Lam, speaking at a meeting of the Central Policy and Strategy Committee, stressed the urgency of comprehensive gold market reform. “The state should not replace the market,” he said, “but must establish fair rules and implement controlled regulation to foster a healthy gold market. This approach transforms gold into a resource rather than a policy burden.”
He also called for the development of the domestic gold jewellery industry, positioning Vietnam as a hub for high-quality production and export. “This would help convert hoarded gold into value-added products,” he noted.
To support reform, To Lam proposed establishing a gold market information and data system aimed at improving transparency, tax collection, and oversight. He also highlighted the need for stronger inter-agency coordination to tackle gold smuggling and market manipulation.
“The Gold Business Association must play a more active role,” he added, “serving as a bridge between enterprises and regulators, relaying industry concerns, recommending policies, and coordinating market stabilisation efforts.”
Experts Urge Market-Based Approach
Economic experts have echoed the call for reform. Assoc. Prof. Dr. Ngo Tri Long, former director of the Price and Market Research Institute under the Ministry of Finance, warned that rigid administrative tools can no longer effectively govern the gold market.
“Past policies such as supply restrictions, monopolising gold bar production, and import limitations once helped stabilise the exchange rate,” he said. “But today, they are distorting the market, fuelling speculation and smuggling, and creating record-high gaps between domestic and international gold prices.”
He urged authorities to end the monopoly on gold bar production and allow controlled imports. “Gold should not be imported through inflexible auctions,” he said. “Instead, import quotas should be granted based on a company’s capacity, legal compliance, and audit transparency to promote fairness and limit manipulation.”
Ngo Tri Long also proposed establishing a national gold exchange to centralise and regulate trading activity. “Such an exchange could be integrated into Ho Chi Minh City’s international financial centre,” he said, “to reduce black-market activity and align Vietnam’s gold policy with international practices.”
Agreeing with the proposal, Assoc. Prof. Dr. Pham The Anh, dean of the Faculty of Economics at the National Economics University, said now is the right time to develop a legal framework for a gold exchange. “This will reduce the public’s dependence on physical gold and restore trust in the market,” he said.
He emphasised the need to amend Decree 24, which governs Vietnam’s gold market, arguing that domestic price instability reflects broader macroeconomic issues. “Eliminating exclusive gold brands will create a freer, more competitive market,” he added.
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