Vietnam ends gold monopoly, allows banks back into bullion market

Tue Sep 23 2025

Vietnam will allow commercial banks to produce and import gold bars from October 10 under new government regulations.

"Of the eight banks approved to participate in the gold market, more than half are state-owned, creating favorable conditions for stronger government oversight. There’s no longer concern about banks 'breaking the rules'," a representative of the Vietnam Gold Business Association affirmed.

Which banks can enter the bullion market?

Decree No. 232 officially ends the state monopoly on gold bar production and introduces key amendments to Decree No. 24, which had governed gold market operations since its issuance in April 2012.

Starting October 10, qualified commercial banks and enterprises will be allowed by the State Bank of Vietnam to produce gold bullion, replacing the former state-exclusive mechanism. Additionally, the import of raw gold will be relaxed, permitting eligible banks and companies to participate.

To qualify, enterprises must have a minimum charter capital of 1 trillion VND (about $41.8 million USD), while banks require at least 50 trillion VND (approximately $2.1 billion USD). Applicants must already hold licenses for precious metals trading from the State Bank and must not be under sanction - or must have resolved past violations.

Currently, eight banks meet the capital requirement: Vietcombank, BIDV, VietinBank, Agribank, VPBank, Techcombank, MB, and ACB.

According to the Vietnam Gold Business Association, the return of commercial banks to the gold market differs significantly from the past and will now be under tighter regulation.

Before Decree 24, Vietnam’s gold market was more liberalized. Many people stored savings in gold, and banks often sold customer-deposited gold to issue loans. At the time, gold deposits offered a mere 2% annual interest, while the cash loans generated over 10%, resulting in a wide interest margin.

However, when gold prices soared and banks lacked proper hedging tools, a rush by customers to reclaim their gold left many institutions in serious financial difficulty. This scenario was one of the drivers behind Decree 24’s introduction - to "de-goldenize" the economy and restrict banks' involvement in the gold market.

Under the current revised regulations, commercial banks are allowed back into the market, but their participation is limited and closely monitored by the state.

"With more than half of the participating banks being state-owned, the government can manage the market more effectively. Only qualified institutions can engage in the import-export, production, and trading of gold bullion, helping stabilize the market," the Gold Business Association’s representative noted.

Curbing speculation and stabilizing prices

Dr. Nguyen Tri Hieu, a banking and financial expert, believes that allowing select banks and large gold enterprises to import gold will help stabilize the domestic market and reduce speculation. The move is expected to provide a more balanced gold supply and demand, helping resolve the long-standing issue of Vietnam’s gold prices diverging significantly from global rates.

“The price gap between domestic and international gold could narrow if the government boosts supply. When the local market is aligned with the global market, price disparities will naturally decrease,” Hieu explained.

He added that the current return of banks to the gold market appears more reasonable, with improved risk control mechanisms compared to 15 years ago.

Back then, banks were heavily involved in both gold deposits and lending, but those activities have since been banned. Although commercial banks are now permitted to produce, import, and export gold, they are still prohibited from mobilizing or lending gold.

"This restriction is sensible because gold lending would shift banks away from their core financial functions into commodity markets, which are inherently riskier and more volatile," Hieu concluded.

Source: https://vietnamnet.vn/en/