Why Vietnam Gold Sells 14% Above World Price

VIETNAM · ANALYSIS

Vietnamese gold bars sell for about 14% more than the world price of the metal, and a change in the law has not closed the gap. The premium shows how tight supply and one trusted brand can cut a local market off from the global one.

Vietnamese households have long held gold as savings, and the local price now sits well above the global one. This analysis explains the numbers behind it, as flagged in our Asia Intelligence Brief.

Our Asia desk follows the story for readers outside Vietnam. The key question is why a global commodity can sell for so much more in one country.

How the Premium Is Calculated

Vietnamese gold is quoted in lượng, a traditional unit of 37.5 grams, or about 1.21 troy ounces. At the spot price of US$3,994 an ounce (RT, Friday 23 October close) and a rate of 25,840 dong per dollar, one lượng of gold is worth about VND124.4 million (US$4,815).

SJC, the Saigon Jewelry Company, sold its bar at VND141.7 million on 24 October, according to Nhân Dân, the Communist Party daily. That is VND17.3 million (about US$669) above the world-price equivalent, or roughly 14%, before taxes and fees.

Buyers also face a dealer spread. SJC offered to buy back at VND138.7 million (US$5,368), so a customer who resold at once at quoted prices would lose VND3 million (about US$116).

A Market Built Around One Brand

Since 2012 the rules of Decree 24/2012 have given the State Bank of Vietnam, the central bank, control over gold bar production and gold imports. In practice that made SJC the reference bar for the whole country.

Supply was therefore limited by policy, not by the global market. When demand rose, no importer could simply bring in more bullion and sell it at the higher local price.

That is why the usual arbitrage did not work. In an open market a 14% gap would draw in traders until it closed.

The Law Changed, the Gap Did Not

Decree 232/2025, issued on 26 August 2025 and in force from 10 October 2025, ended the state monopoly on gold bar production. It also allows qualified businesses and banks to import gold directly.

The central bank said in April 2026 that it had received 11 applications for gold bar production licences, from companies and banks, as reported by Vietnam News. Firms need at least VND1 trillion (about US$38.7 million) in charter capital and banks at least VND50 trillion.

We found no public list of licences granted. Until new producers actually sell bars, the practical supply picture changes little, which fits a premium that is still wide in late October.

Why Households Pay Up

Many Vietnamese families hold gold as savings, as protection against inflation and as a store of value outside the banking system. SJC bars are the form most buyers know and trust.

A buyer is therefore paying for a recognised, easily resold product, not only for the metal. If the premium looks permanent, more households may buy to avoid missing out.

Why the Local Price Moved Less

World gold fell US$28.2 an ounce on Friday from the previous close, according to Nhân Dân’s report of 24 October, a drop of under 1%. SJC cut its prices by only VND300,000 (about US$12) per lượng, or about 0.2%.

The smaller move shows the gap between the two markets. A global sell-off does not pass through one-for-one when local supply is tight.

What It Means for US Readers

A US investor who owns gold through an exchange-traded fund or futures pays the world price, not the Vietnamese premium. The SJC gap still shows how a regulated physical market can drift away from the dollar benchmark.

For anyone travelling or living in Vietnam, bars carry the same lesson. The price you pay can include a local premium that disappears if supply rules change.

Gold in dollar terms has also been soft. Spot closed at US$3,994 on 23 October, after US$4,126 on 21 October.

What We Do Not Know

No official source publishes a formula for the SJC premium. Our figure is our own calculation from one day’s quotes, a spot price and an exchange rate, and the real gap shifts through the day.

We also do not know when the central bank will decide on production licences, or how many bar brands will win official standing. Prices from other dealers such as DOJI and PNJ were not part of this check.

What to Watch

Watch for the central bank’s first published licences for gold bar production. New supply is the clearest route to a narrower premium.

Also watch the dong-dollar rate and the buy-sell spread at SJC. A weaker dong raises the local cost of imported gold, while a wider spread usually signals dealer caution.

Frequently Asked Questions

Why is Vietnam gold more expensive than the world price?

Supply is tightly controlled and SJC bars carry a trusted brand. On 24 October 2026 an SJC bar sold for about 14% more than the world-price equivalent.

How big is the SJC gold premium?

On 24 October 2026 an SJC bar sold for VND141.7 million (about US$5,484) per lượng. The world-price equivalent was about VND124.4 million (US$4,815), a gap of roughly 14%.

What is a lượng of gold?

A lượng is a traditional Vietnamese unit of 37.5 grams, about 1.21 troy ounces. International gold prices are quoted per troy ounce, so local prices must be converted.

Did Vietnam end its gold bar monopoly?

Yes, on paper. Decree 232/2025 ended the state monopoly on bar production from 10 October 2025, but we found no public list of newly licensed producers.

Can US investors avoid the Vietnam premium?

Yes. Gold funds and futures in the United States track the dollar spot price, not Vietnamese retail quotes, so they carry no SJC premium.

Will the premium disappear?

It could narrow if new licensed producers add supply or if household demand cools. No official timetable for new licences has been published.