In recent months, domestic gold prices in Vietnam have surged sharply, causing widespread concern among investors and the public. The significant gap between domestic and global gold prices exceeding VND 20 million per tael has made the market hotter than ever.
In this context, the Vietnamese Government and the State Bank of Vietnam (SBV) have urgently introduced a series of reforms to stabilize prices, increase transparency, and control financial flows in gold transactions. One of the key goals is to bring “sleeping gold” in the population back into circulation, thereby creating additional financial resources for the economy and curbing speculation.
In this article, DC Technologies will explore why the gold market has become so heated, what reforms the Government is pursuing, and what challenges remain in changing the Vietnamese habit of hoarding gold.
I. Current Situation of the Gold Market
1. Domestic and International Gold Prices
Domestic gold prices have continued to climb sharply, at times approaching VND 147 million per tael, the highest level in history as of mid-October 2025. This development has widened the gap between domestic and international prices to 15–20 million VND per tael, raising serious concerns for regulators.
Figure 1: The current state of Viet Nam gold market
The main causes stem from limited supply amid rising demand for safe-haven assets as citizens seek protection from inflation and currency fluctuations. Additionally, the depreciation of the Vietnamese dong against the USD has contributed to higher domestic gold prices.
This divergence between domestic and global gold prices has spurred speculation, smuggling, and underground trading, distorting the market and complicating monetary policy management.
2. The Habit of Gold Hoarding Among Vietnamese People
Gold has long been considered a “safe asset” in Vietnamese financial culture. As prices repeatedly set new records, the trend of gold hoarding has intensified, particularly among middle- and upper-income households.
According to research reports, the amount of “idle gold” held by the public is estimated to reach hundreds of tons, equivalent to hundreds of trillions of VND locked out of circulation. This immobilized capital reduces liquidity in the banking system and limits investment flows into production.
>> Read more: Estimated Gold Holdings Among the Public Reach Up to 2,000 Tons
Figure 2: Vietnamese people continue to hoard gold
The prolonged “goldization” of the economy weakens monetary policy effectiveness since a large portion of national wealth remains outside the formal credit system. This is precisely why the Government has had to act.
II. Vietnam Government’s Reform Objectives
1. Stabilizing the Gold Market
The top priority of the Vietnamese Government is to stabilize gold prices and reduce the domestic–international price gap. When the market becomes unbalanced, abnormally high gold prices can cause public anxiety, leading to speculation and exchange rate volatility.
The State Bank of Vietnam (SBV) has been tasked with regulating supply and demand, expanding legitimate gold supply sources, and tightening oversight of gold trading activities to ensure the market operates transparently and sustainably.
2. Enhancing Transparency and Controlling Financial Flows in Gold Transactions
One of the key measures is mandating bank transfers for gold transactions worth VND 20 million or more. This policy aims to reduce cash usage, curb underground dealings, and prevent money laundering through gold.
At the same time, the Government is intensifying inspections of gold businesses, requiring public disclosure of buying and selling prices based on market principles to ensure transparency. Strengthening financial control in gold trading is expected to reduce speculative risks and enhance public trust in the system.
3. Encouraging Gold Circulation
To unlock “sleeping gold” from personal safes, the Government has issued Decree 232/2025/NĐ-CP, allowing commercial banks and qualified enterprises to participate in the gold market. This effectively ends the long-standing monopoly on gold bar production, creating fair competition and increasing supply.
This reform aims to make the gold market more flexible, reduce domestic price pressures, and encourage citizens to reintroduce gold into official circulation channels. In the long run, it is an essential step toward transforming gold from a static asset into an active source of capital for economic growth.
Figure 3: The government is implementing policies to encourage gold circulation to resume
III. Challenges in Changing the Habit of Gold Hoarding
Although these reforms are viewed positively, changing the Vietnamese public’s gold-hoarding habit remains a formidable challenge. Gold is not merely a financial asset — it also carries psychological and cultural significance as a symbol of safety, prosperity, and traditional wealth preservation.
Moreover, alternative investment options such as stocks, bonds, or savings funds have yet to become sufficiently attractive or stable to divert people away from gold. Encouraging citizens to shift toward these channels requires consistent, transparent policies that build long-term confidence.
The Government must also proceed cautiously to avoid triggering panic selling or speculative surges in response to policy changes. Therefore, gold market reforms must be implemented gradually, flexibly, and in close coordination with broader macroeconomic stabilization efforts.
Conclusion
The recent surge in gold prices not only reflects global market fluctuations but also underscores the urgent need to restructure Vietnam’s gold market. The current reform measures demonstrate the Government’s determination to stabilize the market, enhance transparency, and mobilize dormant gold resources within society.
If implemented effectively and consistently, these reforms could help narrow the price gap, reduce goldization, and promote sustainable market development. More importantly, this presents an opportunity to transform “sleeping gold” into a powerful financial resource, fueling economic growth and national financial stability.
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