Vietnam ends state monopoly on gold bar production; local price premiums may narrow

[HO CHI MINH CITY] Vietnam, one of the largest gold markets in Asia, has initiated a major overhaul by ending over 13 years of state monopoly on gold bar production, which was previously held by state-owned Saigon Jewelry Company (SJC).

According to a decree released on Tuesday (Aug 26), the State Bank of Vietnam (SBV) – the country’s central bank – will extend production licences to certain qualified commercial banks and enterprises. These firms can also import and export gold bullions and materials within allocated annual quotas.

“Multiple gold bar brands are expected to re-enter the market, reducing reliance on SJC and helping narrow the domestic-global price gap,” Tyler Nguyen, chief market strategist at Ho Chi Minh City Securities (HSC), wrote in a note.