CaliToday (06/10/2025): As both domestic and global gold prices continue to hold at persistently high levels, Vietnam's Ministry of Finance has formally submitted a proposal to the government to introduce a tax on the transfer of physical gold bars. The move, aimed at increasing market transparency and boosting state revenue, could mark a significant policy shift for one of Southeast Asia's most active gold investment markets.
 |
| Mr. Luu Duc Huy - Deputy Director of the Department of Tax and Fee Policy Supervision and Management answered at the regular press conference of the third quarter of the Ministry of Finance. |
For months, the Vietnamese gold market has been characterized by soaring prices, with domestic rates for SJC-branded gold bars often trading at a significant premium sometimes millions of VND per tael over international spot prices. This price disparity is fueled by strong local demand for gold as a traditional safe-haven asset and a hedge against inflation, coupled with regulations that limit the official import of raw gold.
The persistently high prices have created challenges for market management and raised concerns about speculation and potential smuggling activities across borders. In response, the government has been exploring various measures to stabilize the market and narrow the gap between domestic and world prices.
The latest proposal from the Ministry of Finance focuses directly on transactions involving "vàng miếng" (physical gold bars), which are the preferred investment tool for most Vietnamese citizens. While details of the proposed tax rate have not yet been made public, the primary objectives of the policy are believed to be:
Enhancing Market Management: A transaction tax would require more formal documentation, helping authorities to better monitor the flow of physical gold, increase transparency, and curb illicit trade.
Boosting Budget Revenue: With a high volume of gold transactions occurring daily, a tax—even a small one—could generate a substantial new stream of revenue for the state budget.
Formalizing the Market: The policy aims to bring a larger portion of the informal gold trade into the formal economic sector, aligning it with practices for other assets like securities and real estate.
Market analysts suggest the proposal will be closely watched. If implemented, the tax could influence investor behavior, potentially shifting some demand from physical gold bars to other assets or to gold jewelry, which may not be subject to the same tax structure. Gold trading businesses would also face new compliance and administrative requirements.
The proposal is currently under review by the government, and its final decision will be a pivotal moment for millions of investors and the future regulatory landscape of Vietnam's dynamic gold market.