The gold market will be competitive in the coming time.

Abolish the State monopoly on gold bar production

On August 26, the Government issued Decree No. 232/2025/ND-CP amending and supplementing a number of articles of Decree No. 24/2012/ND-CP dated April 3, 2012 on the management of gold trading activities.

Notably, the State's monopoly on gold bar production, raw gold export and raw gold import for gold bar production is abolished. Gold trading of 20 million VND/day or more must be paid through bank accounts; enterprises are considered by the State Bank for granting a gold bar production license when meeting many conditions, including having a charter capital of 1,000 billion VND or more...

In reality, the gold bullion monopoly mechanism stipulated in Decree No. 24/2012/ND-CP, which aimed to combat the "goldization" of the economy , is no longer suitable and has revealed many limitations, primarily in restricting supply.

Saigon Jewelry Company Limited (SJC), the only gold bar brand designated by the State Bank to produce in Vietnam since 2012, no other enterprise is allowed to produce national brand gold bars. Enterprises are also not allowed to import raw gold to produce gold bars, only allowed to re-stamp dented and distorted gold, making it difficult to meet market demand.

The fact that only one entity is authorized to produce and import gold bars (under the supervision of the State Bank of Vietnam) has created a scarcity of supply, leading to SJC gold bar prices consistently being significantly higher than world gold prices.

At times, this price difference reached 20 million VND per tael, not only causing losses for the people but also creating risks for the market.

In particular, in recent days, also due to limited gold supply, domestic gold prices have increased sharply. If in April 2025, the world gold price was about 3,400 USD/ounce, the price of SJC gold bars was 124 million VND, then currently the international gold price is at 3,380 USD/ounce while the price of SJC gold bars is up to 128 million VND/tael - the highest level in history.

Gold trading at a store on Tran Nhan Tong street. Photo: HT

The large difference between domestic and international gold prices is the main driver of gold smuggling, causing foreign exchange losses and affecting national foreign exchange reserves. Therefore, the Government's issuance of Decree No. 232/2025/ND-CP has been highly appreciated by experts.

According to expert Nguyen Quang Huy, CEO of the Faculty of Finance and Banking (Nguyen Trai University), Decree No. 232/2025/ND-CP is a turning point in the management of Vietnam's gold market, as it eliminates the monopoly on gold bar production and replaces it with a conditional licensing mechanism.

This is not merely a legal and technical change; it reshapes the market structure, encourages competition, ensures transparency, and brings it closer to international standards.

The market will be diverse.

Sharing the same view, gold expert Tran Duy Phuong said that the issuance of the above decree is a positive move for the gold market.

"The elimination of the State's monopoly mechanism on gold bar production, raw gold export and raw gold import to produce gold bars will help many other gold bar brands have the opportunity to enter the market, thereby diversifying the market, giving investors and people more choices. Improved supply, with many gold bar brands on the market, will create competition in the future, and people will buy gold at more reasonable prices," Mr. Phuong said.

According to Mr. Nguyen Quang Huy, for enterprises with charter capital under 1,000 billion VND, the door to gold bar production has officially closed. They have lost the opportunity in the segment with the highest liquidity and profit, but there are still other directions: Developing gold jewelry and fine arts, where creativity can be promoted and sustainable consumption needs can be met; becoming an official distribution channel for large enterprises; or expanding ancillary financial services such as gold pawning, storage, and mortgage. Although no longer in the main "playing field", this group still plays an important role in the gold market value chain.

For SJC, the impact is twofold. SJC currently possesses a superior brand and social trust. However, by losing its monopolistic position, SJC will be forced to compete in a genuine manner.

The profit margin from the difference between buying and selling will narrow, and the pressure from new competitors will increase. If they continue to innovate, upgrade inspection technology, develop financial products related to gold and strengthen the distribution system, SJC can still maintain its leading position. On the contrary, if they rely on the halo of the past, they will gradually lose market share.

“The group of enterprises with charter capital of 1,000 billion VND or more, in addition to SJC, has the opportunity to enter the gold bar sector - a playground that has been protected for many years. This is a potential "newbie" with the ability to create a new competitive counterweight. Their advantage lies in capital potential, management and the ability to build a long-term strategy. But the big challenge is the social trust in SJC gold bars that has accumulated over many years and to change people's habits requires perseverance, transparency and a commitment to two-way buying and selling to create sustainable liquidity," said this expert.

Many experts believe that with the issuance of this decree, the gold market will stabilize in the near future, and domestic gold prices will be closer to world gold prices. However, a rapid reduction in the price difference is not expected; there will be a time lag.

“At the market level, in the short term, the gap between domestic and world gold prices will be difficult to erase immediately. Supply has not yet diversified, while speculative psychology and brand name still make SJC gold bars highly valued. Therefore, gold prices may still fluctuate and not fully reflect real supply and demand. But in the long term, when many qualified businesses participate in production, compete on price and service, the market becomes more transparent, the price gap with the world will narrow. More importantly, social trust in the stability and transparency of the gold market will be strengthened, contributing to macroeconomic stability and enhancing the position of the national financial system,” said expert Nguyen Quang Huy.

Some other experts also said that currently, the market has no supply and needs specific instructions to implement the decree, so the gold price cannot decrease immediately. When there is supply, the market "absorbs" enough demand, then the difference between domestic and world gold prices will shrink to a reasonable level of about 5-6 million VND/tael.

The gold market may cool down in the short term because Decree No. 232/2025/ND-CP helps alleviate sentiment; those who want to buy gold at any price will hesitate, while those who own gold and want to sell can aggressively take profits to maximize their gains.

Source: https://hanoimoi.vn/thi-truong-vang-se-canh-tranh-trong-thoi-gian-toi-714188.html