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2026-02-18 16:53:32
[Vietnam Cracks Down on Illegal Gold Trading, Domestic Gold Price Premium Draws Attention] ⑴ Vietnam implemented a new law on February 9th, imposing fines of up to 300 million Vietnamese dong (approximately US$11,550) on illegal gold production. This move aims to regulate the country's active gold market and crack down on unauthorized trading activities. ⑵ As Southeast Asia's largest gold market, Vietnamese residents are accustomed to using gold, rather than Vietnamese dong, to value assets such as motorcycles and houses. Gold enjoys a very high level of popularity and circulation in the country. ⑶ This penalty comes months after Vietnam relinquished its monopoly on gold trade and production. For over a decade, Vietnam centrally managed gold production and foreign trade through the central bank, designating Saigon Jewelry Company as the sole producer, thus exercising exclusive control over the market. ⑷ This long-term monopoly policy, coupled with strong demand for gold as a safe-haven asset, has resulted in domestic gold prices in Vietnam consistently exceeding international levels. The new regulations represent an important step for Vietnam in strengthening supervision and promoting market standardization after gradually opening up the market.
