Vietnam’s Party chief calls for end to state monopoly on gold bullion

Party General Secretary To Lam issued the directive on Wednesday during a policy meeting with the Central Commission on Policies and Strategies.

During the meeting, Tran Luu Quang, head of the commission, insisted on managing the gold market based on market principles with appropriate state regulation.

He stressed the importance of respecting ownership rights, property rights, and freedom of business, as well as ensuring gold market transparency, contributing to channeling gold resources into economic development.

Addressing the meeting, Lam acknowledged recent progress in tightening gold-related policies but noted ongoing challenges, including outdated regulations, sluggish reforms, and illegal cross-border trade.

He urged policymakers to consider expanding gold imports to boost supply and help close the gap between domestic and international prices, as well as to crack down on cross-border gold smuggling.

Lam stated that the state should continue to supervise bullion production but allow qualified private firms to manufacture gold bars under license.

The goal, he said, is to dismantle monopolistic practices in a controlled manner, create a fairer competitive environment, and stabilize prices.

“We must shift from banning what we cannot control to opening up and governing effectively," Lam said. 

"We need to move from administrative interference to a disciplined, market-based approach."

He called for avoiding rigid interventions that constrain market dynamics and hinder the market's inherent strengths.

The Party leader also added that gold storing should be recognized as a legitimate form of savings and investment.

Lam also called for improved management efficiency and stronger inter-sectoral coordination, particularly in efforts to combat gold smuggling.

The Vietnam Gold Traders Association, he added, should play a greater role as an intermediary between businesses and the state.

In addition to permitting new gold producers, Lam recommended long-term measures to integrate gold into the broader economy.

These include encouraging alternative investment channels that might draw privately held gold into productive use, and expanding Vietnam’s gold jewelry sector into a regional manufacturing and export hub.

He also proposed eliminating export taxes on gold jewelry and fine arts, while improving oversight of gold trading through better data collection, tax enforcement, and coordination among ministries.

Among the bolder proposals was a recommendation to study the feasibility of creating a national gold exchange, allowing gold to be traded on Vietnam’s future international financial center or existing commodities platforms.

He also floated the idea of taxing gold trading to discourage speculation and increase regulatory control.

Regulators and the State Bank of Vietnam have been tasked with developing detailed proposals and reports on these measures.