Hanoi, 7 November 2025 – Vietnam’s government is stepping up efforts to bring back into circulation large volumes of privately hoarded gold, amid surging global and domestic prices and concerns about the impact on the national currency and economy. The move reflects shifting policy amid a broader liberalisation of the country’s gold market.
With domestic gold premiums sometimes reaching double-digit percentages above global benchmark prices, Vietnamese households hold an estimated 500 tons of gold outside the formal financial system, an increasingly visible drag on financial flows and exchange‐rate stability.
The reforms underway aim to ease state controls on gold trade, including relaxing import and export restrictions, while encouraging holders of physical gold to sell or redeploy their assets through official channels. These measures are designed to promote investment into productive sectors and reduce the hoarding of gold as a store of value.
Industry observers say the push comes at a pivotal time. Vietnam’s gold price premium over offshore markets has been as high as 20 million dong (about US$760) per tael, before narrowing to about 10%. The government is targeting a spread of just 2-3%.
Why This Matters
- Currency and trade flows: By drawing hoarded gold into formal channels, the state hopes to ease pressure on the dong and reduce gold‐related outflows that weaken the currency.
- Investment redirection: The reforms send a signal that the government prefers capital to go into productive assets rather than passive gold hoarding.
- Financial system strengthening: Bringing gold into circulation enhances transparency and expands the scope for banks and fintech to build products tied to gold without relying on physical bars.
What to Watch
- Implementation mechanics: How incentives are structured, tax breaks, eased regulations or trade-in schemes, will determine how effectively hoarders respond.
- Price differential: Whether the domestic gold premium closes further to global benchmarks will provide a benchmark for policy success.
- Broader reforms: The gold policy is part of a wider push to deregulate, liberalise and modernise Vietnam’s financial and commodity markets.
