On the day gold prices peaked, many gold shops in Hanoi only sold a maximum of five taels, leading to people buying and selling hand to hand outside the store.

The State Bank of Vietnam (SBV) has taken an unexpected move amid higher gold prices, increased dong/dollar exchange rate, and an active crypto market.

VN Gold Traders Association has proposed three companies be allowed to carry out gold import of around 1.5 tonnes per year as a bold effort to gradually remove the monopolies in the domestic gold market.

It is time for Vietnam to abolish the state monopoly on gold bar production and to grant production licenses to qualified enterprises.

The Vietnamese stock market is attracting billions of dollars, though the gold market is  hot with SJC gold prices soaring, while the dong/dollar exchange rate has hit new peaks and the central bank has withdrawn cash from circulation.

The Government has directed the State Bank of Vietnam (SBV) to urgently inspect and supervise to stabilise the gold market.

Domestic gold prices rallied on Thursday morning to set a new record at VNĐ81.25 (US$3,385.4) million per tael for SJC gold bars.

Gold prices have soared because of geopolitical uncertainties, putting pressure on the Vietnam dong. But the dong price will not fluctuate too heavily, analysts say.

Estimating that 400 tons of gold are in people’s coffers, experts have urged the use of gold as capital for the national economy through the issuance of gold deposit certificates.

The World Gold Council’s Gold Demand Trends report reveals that annual gold demand (excluding over-the-counter) fell to 4,448 tonnes in 2023, down just 5% from a notably strong 2022.

Vietnam consumed nearly 55.5 tonnes of gold jewelry in 2023, down 6% compared to the previous year, according to the World Gold Council (WGC).

Economists at a seminar on solutions to develop a safe and sustainable gold market suggested abolishing the monopoly on SJC gold bars.

The State does not encourage the trading of gold bars, protect their prices, nor accept too large differences between domestic and global gold prices, and between SJC and other types of gold bars.

The Prime Minister has signed a telegram, asking for solutions to be introduced to rein in the gold market that has fluctuated sharply in recent times.

SJC bullion gold prices in the domestic market have been climbing to new highs. On December 22, prices surpassed VND76 million, and then the VND77 million per tael threshold.

The domestic SJC gold price continued its upward trend on the morning of December 26, soaring by VND1.6 million per tael to VND80.22 million (US$3280.05) per tael - surpassing all historical peaks.

Domestic gold prices kept skyrocketing on December 20 morning to pass the historic high, reaching 75.4 million VND (nearly 3,100 USD) per tael (1.2 ounces).

From VND34.78 million per tael in 2013, the SJC gold price has nearly reached the VND72 million per tael threshold, which means an increase of VND37.14 million after one decade.

A surge in global prices has driven gold to historic heights in the domestic market, with SJC gold bars and 9999 gold rings reaching the highest price since the beginning of the year.

In its recent report, the World Gold Council said demand for gold in Vietnam shrank 9% in the second quarter year on year due to the economic difficulties.