CaliToday (17/9/2025): Vietnam’s Prime Minister Phạm Minh Chính has issued an urgent directive to the State Bank of Vietnam (SBV), demanding immediate measures to stabilize the domestic gold market. The move comes as global gold prices surged to a historic high, breaking the $3,700 per ounce threshold for the first time and placing immense pressure on the local economy.
The unprecedented rally in the international market has triggered significant volatility in Vietnam, where gold is a deeply ingrained tool for savings and investment. In response to the growing instability, the Prime Minister has mandated that the central bank deploy "urgent solutions" to bring the market under control. The directive specifically focuses on narrowing the substantial price gap between domestic and international rates and launching a severe crackdown on illegal activities such as speculation and smuggling.
For years, Vietnam's gold market has operated with a significant premium over world prices, a phenomenon rooted in the country's strict market controls. The government holds a monopoly on the production of SJC-branded gold bullion—the most popular brand in the country—and heavily restricts the import of raw gold. This has created a supply bottleneck, causing local prices to diverge sharply from global trends, particularly during periods of high demand. The latest global price surge has exacerbated this disparity, leading to a situation the government deems unsustainable and harmful to consumers.
In his directive, Prime Minister Chính outlined several key actions for the State Bank:
Market Intervention and Stabilization: The SBV is tasked with implementing immediate policies to cool down the market, likely through adjusting supply or using other monetary tools to manage demand.
Narrowing the Price Gap: A core objective is to reduce the widening chasm between domestic SJC gold prices and the global benchmark to better protect the interests of local buyers.
Strict Enforcement: The Prime Minister called for a coordinated effort involving the Ministry of Public Security and other agencies to rigorously investigate and penalize any acts of price manipulation, speculation, and cross-border smuggling, which often flourish when a large price differential exists.
The government's swift intervention underscores the critical role gold plays in Vietnam's economy and social fabric. Beyond being a financial asset, it is a traditional store of value, a hedge against inflation, and a crucial component of family wealth. Uncontrolled volatility in the gold market can have significant knock-on effects, potentially impacting the USD/VND exchange rate and overall macroeconomic stability.
Analysts and investors are now closely watching to see what specific measures the State Bank of Vietnam will enact. The challenge will be to balance the need for control with market realities to achieve long-term stability in one of the country's most vital sectors.
