With commercial banks potentially being allowed to produce gold bars, experts argue that the key issue isn't who manufactures the product, but whether the gold is trustworthy and transparent. Vietnam’s gold market is poised to become more open, competitive, and globally integrated.

The State Bank of Vietnam (SBV) is finalizing amendments to Decree 24, aimed at ending the state's monopoly on gold bar production, as well as on the import and export of raw gold used in bar production.

Under the proposed draft, the SBV will license eligible enterprises and commercial banks to produce gold bars (ending SJC's current monopoly), and permit the import of raw gold for both bar production and jewelry manufacturing.

Opening up competition

Speaking to VietNamNet, economist Nguyen Quang Huy, CEO of the Finance and Banking Faculty at Nguyen Trai University, called this a historic milestone for the Vietnamese gold market. He said the reform will usher in a new era of openness, competition, and integration, though it also demands higher standards in risk management, product quality, and market psychology.

Huy predicted that new gold bar brands will emerge, produced by commercial banks or major firms under SBV standards. The market will no longer be dominated solely by SJC.

In the short term, Huy believes SJC gold bars will maintain a psychological advantage due to market familiarity and an established distribution network. However, over the medium to long term, if new brands meet absolute quality standards, offer transparent testing procedures, high liquidity, and widespread availability, a healthy multi-brand ecosystem will form - similar to those in developed countries.

“What matters is not who produces the gold, but whether the product is reliable and transparent. That’s the new standard of competition,” Huy emphasized.

He added that over the past decade, SJC has become more than a brand - it’s a symbol of trust. Vietnamese society has grown accustomed to viewing SJC gold as a secure store of value. A transition will take time, but a high-quality alternative with fair pricing and ease of transaction could gradually shift public confidence.

An increased gold supply would also narrow the price gap between domestic and international markets, reduce speculation, and prevent price manipulation stemming from supply constraints.

Associate Professor Dr. Nguyen Huu Huan from the University of Economics Ho Chi Minh City agreed, noting that ending the SJC monopoly won’t have a major impact on brand recognition, since gold bar products don’t differ significantly when purity levels are the same.

He explained that licensed enterprises and banks are reputable institutions. As long as brand credibility is equivalent, price differences will be minimal. Key considerations for consumers include repurchase guarantees and liquidity. Brands with strong pricing policies, buy-back programs, and post-sale services will win public trust.

However, Huan noted that even with market liberalization, domestic gold prices are unlikely to drop below VND 100 million per tael (approx. USD 4,000) if global gold prices stay around VND 105 million per tael, unless there is a major international price decline.

“That said, increased domestic supply will help close the gap with global prices,” he said.

He also suggested that SBV may issue gold import quotas based on Vietnam’s trade and payment surpluses, to avoid putting pressure on foreign exchange reserves.

Ensuring quality oversight

According to Huy, for the market to operate safely and sustainably, the SBV must implement gold bar standardization across the system. This includes clear regulations on weight, purity, design, anti-counterfeit seals, and serial numbers.

There should also be independent, transparent gold testing centers that meet international standards. These centers must oversee every stage - from raw material to circulation - and apply digital technology for traceability and lifecycle management.

Authorized gold producers must meet strict technical requirements. Bars must comply with not only purity standards but also branding, anti-forgery features, and high liquidity.

Regular inspections and compliance with SBV testing standards are essential. Each new bar should have a unique serial number, standardized packaging, traceability, and frequent quality checks.

Nguyen Huu Huan echoed the importance of rigorous quality control. With multiple producers entering the market, oversight from SBV and market regulators will be crucial to protect consumers.

He also reiterated the need to establish a national gold trading floor that aggregates standardized, high-quality gold products, boosting transparency and market efficiency.

Nguyen Le