Why is gold so expensive in Vietnam? Because supply has been controlled by policy, not by the market. On 24 October, Saigon Jewelry Company sold its SJC gold bar at 141.7 million dong per luong, about 14 percent above the equivalent world price of roughly 124.4 million dong, according to an analysis by The Rio Times based on prices reported by the Communist Party daily Nhan Dan. That gap is about 17.3 million dong, or roughly 669 dollars, on a single bar.
For millions of Vietnamese families who keep their savings in gold, the premium is not an abstract statistic. It means paying far more than the global price when they buy, and facing a possible loss if the premium shrinks. A law change in 2025 was supposed to open the market, yet the gap remains wide, showing how slowly new supply reaches a market that one brand has dominated for more than a decade.
How the 14 percent premium is calculated
Vietnamese gold is quoted in luong, a traditional unit of 37.5 grams, or about 1.21 troy ounces. At a spot gold price of 3,994 dollars an ounce, the close on Friday 23 October, and an exchange rate of 25,840 dong per dollar, one luong of gold is worth about 124.4 million dong, or 4,815 dollars, according to The Rio Times.
SJC sold its bar at 141.7 million dong on 24 October. That is 17.3 million dong above the world price equivalent, roughly 14 percent, before taxes and fees. The Rio Times noted that no official source publishes a formula for the premium and that its figure is based on one day's quotes, so the real gap moves through the day.
Buyers also face a dealer spread. SJC offered to buy back bars at 138.7 million dong, meaning a customer who bought and immediately sold at quoted prices would lose about 3 million dong, or roughly 116 dollars, per luong. That spread adds to the cost of using gold as a short term investment.
Why the gap does not close
In an open market, a 14 percent gap would draw in traders who would import gold, sell it at the higher local price and push the premium down. That did not happen in Vietnam because of regulation. Since 2012, Decree 24/2012 gave the State Bank of Vietnam control over gold bar production and gold imports, which in practice made SJC the reference bar for the whole country.
Supply was therefore limited by policy rather than by the global market. When demand rose, no importer could simply bring in more bullion. The result was a local price that could drift far above the world benchmark during periods of strong demand.
Gold is supposed to be the same everywhere. In Vietnam, a brand name and a licence have been worth 14 percent on top of the metal.
The gap also shows up in how prices move. When world gold fell 28.2 dollars an ounce on 23 October, a drop of under 1 percent, SJC cut its prices by only 300,000 dong per luong, about 0.2 percent, according to the Nhan Dan report cited by The Rio Times. Global sell offs do not pass through one for one when local supply is tight.
The 2025 reform and why it has not worked yet
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, which in theory should allow new supply to flow in and narrow the premium.
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 charter capital of at least 1 trillion dong, about 38.7 million dollars, and banks at least 50 trillion dong. The Rio Times said it 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.
The gold price itself has been volatile. Spot gold closed at 3,994 dollars on 23 October after 4,126 dollars on 21 October, and it recently fell below 4,000 dollars for the first time since July, as we covered in our report on gold's slide below 4,000 dollars.
Why Vietnamese families keep buying
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, so buyers are paying for a recognised, easily resold product, not just for the metal. If the premium looks permanent, some households may keep buying to avoid missing out.
Vietnam's economy is growing quickly, which adds to household wealth and demand for gold. The country posted growth of 9.95 percent in the third quarter, as we covered in our report on Vietnam's 9.95 percent growth. Rising incomes, combined with limited investment options and a cultural preference for gold, keep demand strong. The key factors behind the premium include:
- Years of state control over gold bar production and imports
- SJC's position as the trusted national reference bar
- Strong household demand for gold as savings
- Slow arrival of new licensed producers after the 2025 decree
- A wide buy and sell spread at dealers
Gold also plays a role in family life beyond investment. It is a traditional gift at weddings and a common way to pass wealth between generations, which keeps demand steady even when prices are high. That cultural demand helps explain why the premium can persist for long periods rather than disappearing as soon as global prices fall.
What to watch
The clearest route to a narrower premium is new supply. Watch for the State Bank of Vietnam's first published licences for gold bar production, and for when new bars actually reach the market. The dong to dollar exchange rate also matters, because a weaker dong raises the local cost of imported gold.
For anyone buying gold in Vietnam, the lesson is that the price includes a local premium that could shrink if supply rules change. Investors who hold gold through international exchange traded funds or futures pay the world price, not the Vietnamese premium.
Why is gold more expensive in Vietnam?
Because the state controlled gold bar production and imports for years, limiting supply and making SJC the national reference bar.
How big is the Vietnam gold premium?
On 24 October 2026, an SJC bar sold for about 14 percent above the world price equivalent, according to The Rio Times.
What was the SJC gold price on 24 October?
SJC sold its bar at 141.7 million dong per luong and bought back at 138.7 million dong.
What is a luong?
A luong is a traditional Vietnamese unit of 37.5 grams, about 1.21 troy ounces.
What was the world price equivalent?
About 124.4 million dong per luong, based on spot gold at 3,994 dollars an ounce and 25,840 dong per dollar.
What is Decree 232/2025?
It ended the state monopoly on gold bar production from 10 October 2025 and allows qualified businesses and banks to import gold.
Has the new decree reduced the premium?
Not yet. The central bank received 11 licence applications by April 2026, but no public list of licences granted was found.
What capital is needed for a gold bar licence?
Firms need at least 1 trillion dong in charter capital and banks at least 50 trillion dong.
What was Decree 24/2012?
It gave the State Bank of Vietnam control over gold bar production and imports from 2012.
Why don't traders arbitrage the gap?
Import and production restrictions prevented traders from bringing in more bullion to sell at the higher local price.
How did SJC react when world gold fell?
When world gold fell 28.2 dollars an ounce on 23 October, SJC cut its price by only about 0.2 percent.
What is the SJC buy and sell spread?
About 3 million dong per luong, the loss a buyer would face selling back immediately at quoted prices.
Why do Vietnamese families buy gold?
As savings, protection against inflation and a trusted store of value outside the banking system.
Do foreign investors pay the premium?
No. Investors holding gold through international funds or futures pay the world price, not the Vietnamese premium.
What could narrow the premium?
New licensed gold bar producers and imports reaching the market would add supply and narrow the gap.
Vietnam's 14 percent gold premium shows how regulation can cut a local market off from the global price of a universal commodity. The 2025 decree opened the door to competition, but until new bars reach the market, SJC's premium is likely to persist. For Vietnamese savers, the price of gold includes a cost of policy as well as the price of metal.
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