Vietnam Abandons State Control of Gold, Opens Market to Private Competition
Vietnam is moving to end its 13-year state monopoly on gold bullion production, marking a historic shift toward market-based governance. General Secretary To Lam has called for dismantling the current system that has made Vietnam one of only two countries (with North Korea) maintaining complete state control over gold bullion.
The existing monopoly, established in 2012 during economic turbulence, has created severe market distortions including price gaps of up to $780 per tael compared to international markets, rampant smuggling worth hundreds of millions of dollars, and recent corruption scandals involving state-backed producer SJC. The system has failed to achieve its stability goals while stifling competition and transparency.
The comprehensive reform plan will allow qualified private companies to compete in bullion production, expand import rights to narrow price gaps, and develop Vietnam as a regional gold jewelry manufacturing hub. The reforms aim to mobilize idle domestic gold reserves for economic development while maintaining regulatory oversight, representing a fundamental shift from administrative control to market-oriented governance.
