The Prime Minister has directed the State Bank of Vietnam (SBV), Ministry of Finance (MOF), and related agencies to study the establishment of a gold exchange for public trading. Experts also say it is now the right time to do this.

Nguyen Huu Huan from the HCM City University of Economics explained that there are different types of gold trading floors, including exchanges for gold account or physical gold, with delivery, or hybrid model.

Huan suggests a hybrid model for Vietnam, enabling both physical gold delivery and price arbitrage trading. The gold exchange must be managed by the central bank to prevent unregulated exchanges, which could complicate monetary and forex policies.

He notes that a gold exchange would help narrow the buy-sell price gap, which is very large now, around VND2-3 million per tael. Direct trading on the exchange would reduce this spread.

Moreover, developing gold certificates and gold accounts would significantly reduce public demand for physical gold.

With a hybrid model which allows trading physical gold, gold certificates, and gold accounts, the demand for physical gold would not be high, as people e would opt to hold gold in accounts. This reduces pressure on physical gold supply to the economy.

A gold exchange would also enhance price transparency, curb speculation and artificial price boosts, and align domestic gold prices closer to global ones, addressing current supply issues.

Gold certificate trading floor, similar to stock trading, reflects ownership in accounts, eliminating the need to store physical gold at home. People can withdraw physical gold when needed.

However, Huan believes that it would be better to put the exchange within a new international financial center.

“An international financial center would include a commodity exchange, and gold is a special commodity. Placing the gold exchange within such a center would be more logical, offering greater openness and appeal. The State Bank could initially operate it before transferring to the center,” Huan proposed.

Dinh Tuan Minh, Director of the Center for Market Solutions for Economic and Social Issues, agrees that a gold trading floor to meet people's needs is appropriate and could be a strategy for Vietnam to shift part of its foreign exchange reserves to part of its gold reserves, in addition to foreign currency reserves.

Once the exchange becomes operational, transaction costs people have to pay for gold investment will decrease. Instead of physically handling gold, people could trade via accounts, increasing market transparency and opening diverse investment opportunities, including asset conversions.

“Instead of storing physical gold at home, an exchange allows gold to be recorded in accounts, which can be used for various purposes, like collateral for loans,” Minh said.

How to establish a gold exchange?

Huan said that establishing a gold exchange requires the amendment of Decree 24 on gold business management.  Also, a legal framework must be created to allow the exchange establishment. It is necessary to clarify what gold certificates mean and how it works.

“Building a gold exchange requires an online trading system linked with members. We need to study the exchange’s operating mechanism and technology. I propose using cutting-edge technology like blockchain for safety, security, transparency, and efficiency,” Huan said.

Meanwhile, Minh said that to establish a gold trading floor, the state would have to calculate the gold reserves. At the same time, it is necessary to standardize physical gold with international gold. There should be regulations connecting gold on the trading floor with physical gold.

A legal framework is needed to connect Vietnam’s gold market with the global market.

“There should be regulations related to gold trading on the floor, gold accounts with physical gold. When people need to transfer gold accounts to physical gold or want to transfer physical gold to gold accounts, what will happen? What are the specific VAT rates for withdrawing gold accounts into physical gold, or transferring physical gold into gold accounts?” Minh said

Additionally, he suggested that if the state borrows gold, it could pay interest to citizens. This would mobilize a vast amount of physical gold held by the public to operate the exchange without relying on imports.

On May 26, 2025, SJC gold prices in Vietnam continued to decline, with a drop of up to VND2.5 million, reaching VND119 million per tael, following the PM’s directive to establish a gold exchange. Global gold prices also continued their downward trend.

On May 26, 2025, SJC gold prices in Vietnam continued to decline, with a drop of up to VND2.5 million, reaching VND119 million per tael, following the Prime Minister’s directive to establish a gold exchange. Global gold prices also continued their downward trend.

Manh Ha