Gold in Vietnam surged to unprecedented levels on August 27, coinciding with the government’s decision to dismantle its decade-long monopoly on bullion production and trade.

At Saigon Jewellery Company (SJC), the nation’s largest bullion brand, selling prices reached VND128mn ($4,865) per tael, while buying prices climbed to VND126mn, both record highs and around VND300,000 more than the previous day, Viet Nam News has reported.

The surge followed the publication of a measure that removes exclusive state control over gold bars. The decree introduces a licensing regime under which qualified businesses and banks may import, export and produce bullion, provided they meet stringent financial and operational requirements.

To be eligible, applicants must already hold trading permits and possess substantial capital reserves of at least VND1 trillion for businesses and VND50 trillion for banks. At present, 38 entities are authorised to trade gold bars but only a few have the necessary scale to seek production licences.

As such, the move represents a major departure from the system in place since 2012, when the government appointed SJC as the sole producer of bullion. That monopoly often left Vietnamese gold trading at premiums of VND20mn per tael above international benchmarks.

Alongside the domestic reforms, the Ministry of Finance has also suggested an additional measure to remove the 1% export tax on gold jewellery.

Exports of gold jewellery totalled $332.2mn in 2024 according to the report, representing a 4.95% fall year-on-year. A cut to zero would reduce state revenues by around $3.3mn annually, but officials argue the measure would ease pressure on manufacturers, who face elevated input costs owing to scarce raw gold and inflated local prices.

The proposal comes against a backdrop of volatile global markets. Data from the World Gold Council shows that world prices rose by 28–30% in late 2024, the steepest increase since 2010, and by a further 38–39% year-on-year in the first quarter of 2025.