Vietnam's Gold Market Sees Unprecedented Price Convergence with Global Rates

A notable shift is occurring in Vietnam's gold market, where the price difference between domestic gold and international rates has diminished significantly. The price for SJC gold bars was listed around 144.6 million VND for buying and 147.6 million VND for selling. In comparison, the international gold price closed the week at approximately $4,603 per ounce, translating to about 145.8-146 million VND when converted at current exchange rates. This means that buyers in Vietnam are now paying less than 2 million VND above the global price, a stark contrast to previous periods when local prices soared tens of millions above international rates.

This narrowing of the premium comes amid significant fluctuations in the gold market, which have dampened speculative buying and reduced local demand. According to the World Gold Council (WGC), Vietnam's demand for gold bars and coins in the second quarter of 2026 dropped to approximately 6.5 tons, marking a 28% decrease from the previous quarter and a 31% decline year-on-year. The WGC attributes this decline to a weaker investment sentiment and previous high premiums that made buyers more cautious.

In addition to reduced investment demand, the appetite for gold jewelry has also seen a substantial decline. Vietnam recorded the largest drop in jewelry demand among ASEAN markets monitored by the WGC in the second quarter, with a 28% decrease compared to the same period last year. High gold prices have pressured consumers' purchasing power, indicating a shift in market behavior.

As speculative buying wanes, gold trading companies are no longer compelled to continuously raise buying prices to attract inventory. This has contributed to the narrowing price gap between domestic and international markets. Conversely, the rapid recovery of global gold prices has not been matched by a similar pace in the domestic market, further tightening the price differential.

“The narrowing price gap is influenced by several changes in policies and market structures.”Bui Van Huy, General Director of FIDT

Another factor influencing this trend may be an increase in gold supply from local sellers. Many individuals, seeking liquidity for various financial needs, are turning to gold as a quick cash option. Gold's high liquidity allows for immediate conversion to cash, unlike real estate or stocks, which can take longer to sell. This trend was highlighted by Viet Dragon Securities, which noted that the influx of gold sales in July may have contributed to increased bank deposits in the latter half of the year.

Despite the current low premium, experts caution that such a state may not be sustainable. Bui Van Huy, General Director of FIDT, pointed out that the narrowing price gap is influenced by several changes in policies and market structures. He noted that the previous high premium on SJC gold could be attributed to institutional factors, brand perception, and market psychology. With the government's recent decree abolishing the state monopoly on gold production and allowing more players in the market, expectations of a more competitive environment are rising.

Moreover, increased regulatory oversight of major gold companies, including SJC, aims to standardize pricing mechanisms and enhance market transparency. Huy emphasized that while the current price dynamics are favorable for long-term investors, the ongoing geopolitical uncertainties and potential inflationary pressures could lead to renewed volatility in the gold market.