Unlocking investment motivation by eliminating gold bar monopoly

Recently, General Secretary Tô Lâm held a working session with the Central Committee for Policy and Strategy regarding mechanisms and policies for more effective management of the gold market in the near future.

At the meeting, the General Secretary noted that while gold market management policies have seen some positive adjustments recently, reforms remain slow and have not kept pace with actual market developments. Accordingly, he emphasized the urgent need to reform and improve mechanisms and policies for more effective oversight.

According to General Secretary Tô Lâm, the gold market is currently managed in a rigid manner, not reflecting true supply-demand dynamics. This has led to various consequences such as gold smuggling, capital outflows, and suppression of competition. A monopolistic element persists in the market, which fails to incentivize idle capital in the population to be invested into economic and social development. Meanwhile, outdated and non-modern management methods prevent the public from accessing transparent and safe investment channels.

He emphasized the need to shift management thinking from an administrative mindset to a market-oriented one with discipline; from a “restrict to control” to an “open to govern” approach; and to eliminate the mentality of “banning what cannot be managed.” The gold market should operate based on market principles with state regulation that avoids rigid interference, while ensuring transparency and respecting ownership rights, property rights, and business freedoms of individuals and enterprises.

The public’s practice of hoarding gold is a legitimate demand, and thus policy should aim for effective management without stifling investment incentives, he stressed.

In conclusion, the General Secretary called for the legal framework to be improved, particularly through a swift amendment of Decree 24/2012/NĐ-CP toward a more market-based, regulated roadmap. He proposed removing the state monopoly on gold bullion branding in a controlled manner—whereby the state retains management of bullion production but may license multiple qualified businesses to produce bullion. This would create a fair competitive environment, diversify supply sources, and stabilize prices.

Controlled expansion of import rights should be allowed to increase gold supply, narrow the gap between domestic and international gold prices, and curb cross-border gold smuggling.

The General Secretary also urged development of the domestic jewelry gold market, aiming to position Vietnam as a hub for high-quality gold jewelry manufacturing and export. Simultaneously, he called for the promotion of attractive alternative investment channels to transform hoarded gold into resources for the economy.

He proposed exploring the establishment of a national gold exchange or integrating gold trading into a commodities exchange or international financial center in Vietnam. At the same time, introducing taxes on gold trading was suggested to increase transparency, enhance regulatory oversight, and discourage speculation. He also raised the proposal of eliminating export taxes on gold jewelry and handicrafts to boost production, exports, and added value.

The General Secretary assigned the Party Committee of the State Bank of Vietnam to lead and coordinate with the Central Committee for Policy and Strategy and related agencies to report and propose specific recommendations.

General Secretary Tô Lâm’s directives have generated significant excitement in the gold market, particularly in the jewelry segment. Shares of Phu Nhuan Jewelry Joint Stock Company (PNJ) surged in a vibrant session, aiming for the 84,300 VND/share mark with high trading volume.

However, the optimism extends beyond the jewelry industry. The gold bullion market responded positively with a strong price adjustment on the morning of May 29. Experts hope these reforms will serve as a major catalyst for unlocking investment capital, boosting business activities, developing the stock market (as a vital medium- to long-term funding channel for businesses), and fostering a healthy long-term gold market.

Mr. Huỳnh Trung Khánh, Vice President of the Vietnam Gold Traders Association, stated that allowing raw gold imports specifically for the jewelry industry would unlock the market—a longstanding request by the association. With the industry’s capabilities, this could revitalize and powerfully grow the jewelry and goldcraft sector.

Economist Dr. Đinh Thế Hiển emphasized the need to implement tax mechanisms for gold trading and imports, as directed by the General Secretary.

According to Dr. Hiển, given Vietnam’s current economic context, a significant portion of the population prefers investing in real estate or gold. “Real estate prices have surged over the past decade and may take another ten years to balance out. As a result, people are turning to gold—even when prices are high and the domestic-global gap nears VND 20 million per tael. Gold ownership is a personal property right in a market economy. However, it's important to redirect this capital toward business production and the stock market (an indirect form of investment in business activities). Thus, annual real estate taxes and gold import taxes are appropriate tools to guide this capital flow,” he explained.

Specifically, he pointed out that the paradox of high domestic gold bullion prices compared to the international market, without the state benefiting, would end through tax policy. For instance, a set import tax per tael of gold could generate revenue for economic development and offset the foreign currency cost of gold imports. This would gradually align Vietnam’s gold market with a state-regulated market economy model.

A gold import tax of about VND 2–3 million per tael would be a reasonable burden for gold holders. This amount could significantly contribute to the national budget for infrastructure and economic development while also discouraging excessive hoarding. Thus, funds might instead be deposited in banks or invested in the stock market—both of which indirectly support business and production, the expert concluded.