Domestic gold bars no longer have monopoly, will the price difference narrow?

People hope that the gap between domestic and world gold prices will increasingly narrow. (Photo: Vietnam+) — People hope that the gap between domestic and world gold prices will increasingly narrow. Photo: Vietnam+

The Government has just issued Decree 232/2025, amending and supplementing a number of articles of Decree 24/2012 on the management of gold trading activities. Accordingly, the State monopoly mechanism on gold bar production has been officially abolished. The State Bank will grant licenses to qualified organizations to participate in gold bar production.

From now on, the market is no longer just a production hub but can expand to businesses and commercial banks, marking a turning point in the way gold is managed.

Gold price “indifferent” to big changes

Contrary to expectations, the removal of the monopoly did not cause the gold price to decrease. On the contrary, on the morning of August 27, the price of SJC gold bars increased by 300,000 VND/tael, reaching a record level of 128 million VND/tael.

The difference between buying and selling prices remains high, with SJC gold at around VND2 million/tael and gold rings at VND3 million/tael. Meanwhile, the world gold price is around USD3,378/ounce, equivalent to VND109 million/tael, VND20 million lower than the domestic price. This gap once narrowed to VND11-12 million but has widened, causing great losses for investors.

What surprised observers was the lack of reaction to the new decree. The reason, experts said, was that the policy needed time to be implemented. The State Bank had to issue a guiding circular and grant licenses to businesses and commercial banks before the new supply could affect prices.

At the market level, in the short term, the gap between domestic and international gold prices is unlikely to be eliminated immediately. Supply has not yet diversified, while speculative psychology and brand recognition still cause SJC gold bars to be overvalued. Therefore, prices may still fluctuate and not fully reflect real supply and demand. However, in the long term, when more qualified businesses participate in production, competition in price and service will gradually form, the market will become more transparent, and the price gap with the world will gradually 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,” an expert emphasized.

Abolishing monopoly does not mean letting it float

Financial and banking experts believe that amending Decree 24 is necessary to overcome the situation of limited supply causing domestic prices to repeatedly exceed world prices.

Mr. Tran Duy Phuong - a gold expert, assessed Decree 232 as a positive move. In fact, recently, the price of SJC gold has increased rapidly, much higher than the world gold price. The main reason is still the limited gold supply. For nearly a year, the State Bank has not released gold to the market while demand has increased sharply, causing the price of SJC gold to continuously increase. In April 2025, when the world gold price was at 3,400 USD/ounce, the domestic price was 124 million VND/tael, now the international gold price has slightly decreased to 3,380 USD/ounce but the price of SJC has jumped to 128 million VND/tael.

Enterprises must have a charter capital of 1,000 billion VND or more to participate in gold bar production. Photo: Vietnam+

According to Mr. Phuong, the elimination of the monopoly will pave the way for many new gold bar brands, creating more options for investors. However, the price gap with the world cannot immediately decrease from 20 million to 9-10 million VND/tael. Only when the market has a large enough supply and the decree is implemented synchronously, can the gap narrow to a reasonable level of 5-6 million VND/tael.

Mr. Nguyen Quang Huy, CEO of the Faculty of Finance and Banking, Nguyen Trai University, emphasized that Decree 232 not only changes legal techniques but also has strategic significance in reshaping the market structure, promoting competition, greater transparency and approaching international standards.

According to Mr. Huy, the State's abandonment of monopoly does not mean "letting it go", but rather shifting from a single-centered mechanism to a multi-subject model, but still within the framework of centralized management. The biggest benefit is diversifying supply sources, reducing scarcity, and encouraging competition in price, service, and brand.

According to Mr. Huy, the Decree stipulates that only enterprises with charter capital of VND1,000 billion or more are allowed to participate in gold bar production. Thus, the "main playground" is almost exclusively for large enterprises. Smaller groups lose opportunities in the high-liquidity segment, but there are still other directions such as developing gold jewelry, fine arts, or becoming official distribution channels for large enterprises. They can also expand financial services related to gold such as pledging, storing, and mortgaging.

Enterprises with charter capital of VND1,000 billion or more, other than SJC, now have the opportunity to enter the gold bar sector - a playground that has been protected for many years. This is a "potential rookie" with the ability to create a new competitive counterweight. Their advantages lie in capital potential, management and the ability to build long-term strategies. However, Mr. Huy also said that this is a big challenge because social trust in SJC gold bars has been accumulated for many years, to change people's habits requires perseverance, transparency and a commitment to two-way buying and selling to create sustainable liquidity.

Despite the high price of gold, many people still line up to buy gold. Photo: Vietnam+

For SJC, this change has a two-pronged impact. SJC currently has a superior brand and social trust - intangible assets that are difficult to replace. But when losing its monopoly, SJC will have to compete in reality, and its profit margin from the difference between buying and selling will shrink. If the company proactively innovates, upgrades its inspection technology, develops financial products linked to gold, and expands its distribution system, it can still maintain its leading position. On the contrary, if it relies on past advantages, its market share will gradually be shared.

Mr. Huy emphasized that the participation of units with capital potential and modern management will help the market become more transparent, more closely reflect international developments, thereby gradually reducing the situation of too large price differences. However, due to high licensing conditions, it is likely that only a few large enterprises will be able to participate, creating a selective competition mechanism, no longer an absolute monopoly, but also avoiding excessive dispersion.

PV (synthesis)

Source: https://baohaiphong.vn/vang-mieng-trong-nuoc-het-doc-quyen-chenh-lech-gia-co-thu-hep-519269.html