CaliToday (09/9/2025): Vietnam's central bank, the State Bank of Vietnam (SBV), has officially announced new measures aimed at managing the domestic trade of gold bullion. The move is a direct response to recent market volatility and is designed to stabilize prices, curb speculation, and better align the local market with global trends.
The announcement signals a more proactive stance from the nation's chief monetary authority, which has been under pressure to address the significant and persistent gap between domestic and international gold prices. The new regulations are expected to have a substantial impact on gold trading companies, financial institutions, and individual investors across the country.
Context: Addressing Extreme Price Disparities
For years, the Vietnamese gold market has been characterized by a unique phenomenon: the price of domestic SJC-branded gold bullion often trades at a substantial premium compared to the world price, sometimes by as much as 15-20%. This large disparity has created market distortions, encouraging smuggling and fostering a climate of intense speculation that poses risks to the broader economy.
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| Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam, said |
Recent fluctuations in global markets have exacerbated this volatility, leading to sharp price swings that have unsettled consumers and investors. The SBV's intervention is aimed directly at tackling these core issues to ensure market stability and protect consumers' interests.
Key Focus of the New Management Policies
While the complete and specific details of the circular are still being disseminated, the SBV's announcement indicates that the new management framework will focus on several key areas:
Enhanced Supervision: The central bank will increase its oversight and inspection of licensed gold bullion traders. This includes stricter audits of transactions, sourcing, and inventory to ensure compliance with existing laws.
Improving Transparency: The new rules will likely mandate more transparent reporting and invoicing for all gold bullion transactions. This measure is intended to combat tax evasion and prevent market manipulation by large players.
Potential for Increased Supply: A core element of stabilizing the market involves managing supply. The SBV may resume or increase the frequency of gold auctions, selling bullion from the state reserves to commercial banks. This would inject more liquidity into the market, helping to cool down prices and narrow the gap with international rates.
Clearer Communication: The central bank has signaled its intent to communicate its policies and market outlook more clearly to prevent misinformation and curb speculative hoarding driven by rumors.
Intended Impact and Market Outlook
The primary objective of the State Bank of Vietnam is to bring order and predictability to a market that is crucial to the nation's economic psychology. By implementing these new measures, the SBV aims to:
Narrow the price gap between domestic SJC gold and the world price.
Reduce speculative demand and hoarding.
Strengthen the stability of the Vietnamese Dong (VND) and manage foreign exchange rates more effectively.
Create a fair and transparent playing field for all market participants.
Investors and market analysts will be watching closely in the coming days and weeks to see how these new directives are implemented and what their immediate effect will be on the price of SJC gold. This decisive intervention by the State Bank marks a critical moment for Vietnam's gold market as it moves towards greater stability and integration with the global economy.
