Vietnam has ended its state monopoly on gold bullion production, introducing a licensing regime that creates opportunities in bullion, jewelry, and digital platforms, while imposing strict barriers and regulatory challenges.

Vietnam has long held a deep cultural and economic connection to the precious metal. Families and businesses rely on it as a store of value and a hedge against currency depreciation, particularly in times of economic uncertainty. It also plays an outsized role in savings, investment, and even informal transactions.

FIND BUSINESS SUPPORT

Against this backdrop, the government’s recent introduction of Decree No. 232/2025/ND-CP (“Decree 232”), which ends the state monopoly on gold bullion production, marks a decisive shift. By opening the sector to licensed enterprises and banks, the government is moving from centralized control toward a regulated market, signaling a new phase in Vietnam’s financial development. Nonetheless, the move also raises critical questions about who will benefit and how the market will evolve.

This article reviews Vietnam’s history of state control over the gold market, outlines the key provisions of the new licensing regime, and evaluates its implications. It highlights the opportunities and risks for investors, while considering how liberalization could reshape the country’s broader financial landscape.

Background: Vietnam’s gold market under state control

For more than a decade, Vietnam’s gold market operated under heavy state control. In 2012, the government issued Decree No. 24/2012/ND-CP (“Decree 24”), which centralized gold bullion production and gold import/export under the State Bank of Vietnam (SBV). The Saigon Jewelry Company (SJC) was designated as the sole producer of gold bars, cementing the state’s monopoly.

The government’s policy aimed to curb what it described as the “goldization” of the economy, a term often used by Vietnam’s government that suggests an overreliance on gold, which threatens monetary stability. By consolidating control, the local authorities sought to stabilize the Vietnamese Dong (VND), reduce speculative activity, and prevent capital from flowing into unregulated gold markets.

While these measures brought a degree of stability, they also created market distortions. Private traders faced high barriers to entry, competition diminished, prices diverged from international benchmarks, and innovation opportunities narrowed. As a result, the gold market remained constrained, with limited avenues for innovation or broader investor participation.

Explore vital economic, geographic, and regulatory insights for business investors, managers, or expats to navigate Vietnam’s business landscape. Our Online Business Guides offer explainer articles, news, useful tools, and videos from on-the-ground advisors who contribute to the Doing Business in Vietnam knowledge.
Start exploring

New licensing regime reshapes market access

Vietnam’s Decree 232 abolishing the state monopoly on gold bullion production opens the sector to qualified private players for the first time. The framework, overseen by the SBV, opens structured opportunities for both domestic and foreign investors.

The eligibility criteria are stringent, designed to confine access to only the most financially secure institutions:

Eligible participants

Key requirements

Minimum charter capital

Enterprises

Gold trading license; and
No record of administrative sanctions.

VND 1 trillion (~US$38 million)

Commercial banks

Gold trading license; and
No record of administrative sanctions.

VND 50 trillion (~US$1.9 billion)

For investors, the decree expands the playing field beyond bullion production. Licensed participants can now operate across gold imports and exports, jewelry manufacturing, and even financial instruments such as account-based gold trading and derivatives. The shift creates new avenues for partnerships and product diversification, offering exposure to one of Asia’s most dynamic gold markets.

Liberalization brings competition, transparency, and innovation

The removal of the state monopoly introduces a new phase of liberalization for Vietnam’s gold sector. By shifting from exclusive state control to a licensing framework, the market is expected to become more competitive, with qualified enterprises and banks able to participate in areas that were previously restricted. This competition could increase efficiency in gold trading and broaden access for investors.

The decree also brings Vietnam’s gold market closer to international practices. More explicit licensing rules and regulatory oversight create the foundation for greater transparency, which can improve investor confidence and attract institutional participation. For global players, this alignment reduces uncertainty and supports the possibility of cross-border collaboration.

Beyond bullion, the decree broadens business lines into jewelry, digital platforms, and financial products. These products not only cater to Vietnam’s strong domestic demand but could also support the emergence of gold-backed digital platforms and structured investment products.

In the medium term, these changes are likely to affect gold pricing and availability. Greater competition and regulated imports could help narrow the gap between domestic and international gold prices, while improved distribution networks may increase market liquidity both in Vietnam and across the region

Challenges and opportunities for investors

Vietnam’s gold market liberalization is reshaping the sector into a more dynamic landscape, while at the same time widening the gap between well-capitalized enterprises and smaller players struggling to satisfy regulatory thresholds.

FIND BUSINESS SUPPORT

The challenges begin with the high entry barriers. The capital requirements exclude smaller firms and confine market access to major corporations and financial institutions. Even for qualified players, regulatory uncertainty remains a concern, as the SBV retains tight control over licensing and oversight. Investors must also contend with structural risks, including the persistent divergence between domestic and international gold prices, which require more careful navigation of arbitrage and hedging strategies. Currency risks add another layer of complexity: while gold serves as a hedge against VND depreciation, volatility in exchange rates could amplify short-term fluctuations.

Despite the possible risks, the opportunities are significant. Vietnam consistently ranks among the world’s top gold consumers, with robust demand for bullion, jewelry, and investment products. The decree enables greater product diversification, paving the way for financial innovations such as derivatives and account-based trading. These developments could modernize the sector and attract institutional investors, fintech platforms, and regional trading houses seeking exposure to Vietnam’s demand.

Partnerships may be a key entry point. Large local jewelry producers and banks seeking to expand under the new framework could provide foreign investors with collaborative opportunities in manufacturing, distribution, and financial services. In the long run, Vietnam’s shift toward liberalization may deepen integration with global gold markets, creating a more transparent and competitive environment that rewards early movers.

Future outlook: Build a more competitive and transparent gold sector

Vietnam’s gold market is entering a period of transition. The new licensing framework offers investors a path into a previously closed sector, but adjustment will take time as regulators refine oversight and enterprises adapt to stricter participation rules. Confidence will hinge on how swiftly the SBV issues licenses and whether early entrants can stabilize pricing, with initial activity dominated by large banks and jewelry firms.

As the market stabilizes, momentum is likely to build toward institutional frameworks such as a national gold exchange and digital trading platforms. Proposals for a national gold exchange and the expansion of digital trading platforms point to a more sophisticated ecosystem. These initiatives could strengthen price discovery, deepen liquidity, and create more transparent channels for investment.

Looking further ahead, the decree has the potential to reshape Vietnam’s financial markets more broadly. Greater investor participation, stronger alignment with international practices, and innovative products such as derivatives could position Vietnam as a more competitive player in the regional gold trade. The success of this transformation, however, will depend on consistent regulatory clarity and the ability to build a transparent, trustworthy market environment.

About Us

Vietnam Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Asia, including ASEAN, China, and India. For editorial matters, contact us here and for a complimentary subscription to our products, please click here. For assistance with investments into Vietnam, please contact us at vietnam@dezshira.com or visit us at www.dezshira.com.

Dezan Shira & Associates assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. We also maintain offices or have alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.