Vietnam is preparing to end its 13-year state monopoly on gold bullion production, signaling a major move toward market-based governance. General Secretary To Lam has urged dismantling the system that left Vietnam alongside North Korea as one of the few countries with full state control over bullion.
The monopoly, introduced in 2012 amid economic uncertainty, produced significant market distortions. Artificially divided domestic and international pricing led to gaps of up to $780 per tael, fueling widespread smuggling valued at hundreds of millions of dollars and creating opportunities for corruption tied to state-backed producer SJC. Rather than delivering the intended stability, the policy suppressed competition, reduced transparency, and hampered efficient use of resources.
Under the proposed reforms, qualified private firms would be allowed to produce bullion and participate in a more open market, while import rights would be expanded to help close the domestic–international price gap. The plan also aims to develop Vietnam as a regional center for gold jewelry manufacturing, leveraging local craftsmanship and supply chains. By mobilizing idle domestic gold reserves for productive investment and industrial development, authorities expect to broaden economic opportunities without abandoning oversight.
Crucially, the reform package seeks to shift policy from administrative restriction to market-oriented regulation: preserving consumer protection and financial stability through clear rules and supervision, while promoting competition, transparency, and legal channels for trade. Allowing private participation should reduce smuggling incentives, improve price discovery, and encourage investment in downstream industries such as refining and jewelry production.
The move reflects wider efforts to modernize Vietnam’s economic governance and integrate more deeply with regional markets. Opening bullion production to qualified nonstate enterprises is intended to attract capital and technical know-how, spur efficiency gains, and create jobs across the value chain. At the same time, authorities plan to maintain regulatory tools to manage systemic risks, monitor market behavior, and enforce anti-money‑laundering and tax compliance.
Reform proponents argue that a controlled, phased transition will allow regulators to test licensing frameworks, set quality and audit standards for producers, and scale capacity in refining and hallmarking. This would help ensure product quality, protect consumers, and uphold Vietnam’s reputation in regional and global trade. By aligning price signals with world markets and reducing illicit flows, the measures aim to channel more gold into legitimate economic uses.
Opponents caution that opening the sector requires robust institutions to prevent new forms of market abuse and to safeguard monetary stability. Policymakers appear to be addressing these concerns by coupling liberalization with strengthened oversight, clearer licensing criteria, and tighter enforcement mechanisms.
If implemented, the reforms would represent a fundamental policy reversal: from strict state control of bullion to a system that uses market competition underpinned by regulation to achieve stability and growth. The outcome will shape the future of Vietnam’s precious-metals industry, influence regional supply chains, and determine how effectively the country converts domestic gold resources into broader economic benefits.