HANOI, Vietnam – The Vietnamese government is continuing its efforts to stabilize the domestic gold market, with a key focus on a potential revision of Decree 24, the primary regulation governing the management of gold business activities in the country. Economic experts are hopeful that these adjustments will effectively narrow the persistent gap between domestic and international gold prices and better protect consumer interests.
For months, Vietnam's local gold market has experienced significant volatility, with prices for SJC-branded gold bars often trading at a substantial premium—at times millions of VND per tael higher—compared to global rates. This large disparity has raised concerns about market transparency, speculation, and the rights of consumers who are forced to purchase gold at inflated prices.
In response, the government has been implementing various measures and is now actively considering a comprehensive amendment to Decree 24. First issued in 2012, this decree was designed to control the market and combat the "dollarization" of the economy by, among other things, granting the State Bank of Vietnam the exclusive right to produce SJC-branded gold bars. While it succeeded in some of its initial goals, critics argue that its restrictive nature has limited supply and inadvertently contributed to the current price differential.
Economic analysts and industry insiders have welcomed the move to review the decree. They anticipate that potential revisions could lead to a more liberalized market, possibly by ending the state monopoly on gold bar production and allowing qualified enterprises to import raw gold. Such changes are expected to increase the supply available to the domestic market, fostering greater competition and bringing local prices more in line with international benchmarks.
Ultimately, the goal of these governmental initiatives is to create a healthier and more sustainable gold market. By bridging the price gap, the government aims to curb speculation and ensure that Vietnamese consumers are no longer at a disadvantage. A stable, predictable gold market is seen as crucial for both protecting individual assets and contributing to the overall stability of Vietnam's economy.
