The Vietnamese government is accelerating its reform of the gold market in a bid to tighten regulatory oversight, curb inflation, and support broader macroeconomic stability. Prime Minister Phạm Minh Chính has directed relevant ministries to revise key legislation governing gold trading, with a comprehensive overhaul of Decree No. 24/2012/NĐ-CP expected by June 2025.
The move comes amid growing concerns over persistent market manipulation, speculative pricing, and a widening gap between domestic and international gold prices. At a high-level meeting on gold market management, Prime Minister Chính emphasized the urgency of effective governance in the gold sector, describing it as crucial to Vietnam’s economic resilience.
“Our goal is to manage the gold market efficiently to ensure macroeconomic stability, control inflation, and foster economic growth,” the Prime Minister said. “At the same time, we must mobilize idle gold held by the public for socio-economic development, while preventing smuggling and manipulation.”
Regulatory Reforms and National Exchange Proposal
Under the Prime Minister’s directive, the State Bank of Vietnam (SBV) and the Ministry of Justice have been tasked with simplifying and updating the legal framework to enhance gold market transparency and efficiency. One of the core proposals is the creation of a national gold exchange, aimed at improving oversight, reducing price volatility, and enabling digital gold trading.
Dr. Nguyễn Trí Hiếu, Director of the Global Institute for Financial and Real Estate Market Research and Development, said a centralized exchange would provide a more transparent, sustainable trading environment. He added that electronic transactions, backed by physical gold certificates, would help build public confidence.
“Participants should be issued gold certificates convertible into physical gold under clear and simple conditions,” he said, advocating for a legal framework that supports safe and regulated participation.
Support for the initiative was echoed by Huỳnh Trung Khánh, Vice President of the Vietnam Gold Traders Association, who stressed the need for revisions to Decree 24 to explicitly authorize the formation and operation of such an exchange. This, he said, would allow licensed members to open accounts, issue gold certificates, and offer digital trading services.
SBV Governor Nguyễn Thị Hồng also endorsed the proposal, noting that similar models have been successfully implemented in many countries. However, she cautioned that Vietnam must proceed carefully, given the country does not produce gold domestically. She highlighted the importance of investing in technical infrastructure and ensuring inter-agency coordination to assess the feasibility and mitigate risks.
Ongoing Market Interventions
The SBV has already taken steps to stabilize the domestic gold market, including the auctioning of bullion and distributing gold through commercial banks and SJC, the country’s sole authorized gold bar producer. These measures have narrowed the price gap with international benchmarks, though challenges remain.
Governor Hồng said the SBV is actively monitoring both global and local gold trends. The central bank is also working with other ministries to conduct inspections of gold trading firms and forward any violations for prosecution. In tandem, the SBV is launching public information campaigns to promote awareness and stabilize market sentiment.
Broader Economic Strategy
As part of its comprehensive gold reform strategy, the government aims to separate state management from private gold business operations and promote domestic jewelry manufacturing to stimulate job creation and economic activity.
The Prime Minister also instructed the SBV, Ministry of Finance, and other relevant agencies to improve the investment environment to divert capital away from gold hoarding and channel it into entrepreneurship and production.
Officials believe these efforts will not only stabilize the gold market but also help redirect financial resources toward more productive sectors of the economy.
In the private sector, support for the initiative is growing. Nguyễn Tu Mi, Chairman and CEO of Mi Hồng Co. Ltd, one of Ho Chi Minh City’s leading gold retailers, said establishing a national gold exchange is not only feasible but essential to ensuring a fair and stable market.
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