On December 11 in Hanoi, the Vietnam Gold Trading Association (VGTA), the World Gold Council, and the Singapore Bullion Market Association (SBMA) jointly hosted a seminar on the development of Vietnam's gold jewellery industry and a national gold exchange.

Participants at the seminar

Dinh Nho Bang, chairman of the VGTA, noted that developments in the global precious metals market have once again reaffirmed gold's historical role as a preferred safe haven during periods of geopolitical and economic uncertainty. Demand for gold among individual investors, institutional investors, and even national reserves has surged over the past two years, despite gold prices repeatedly reaching new highs.

Experience from many countries shows that having an efficiently operated gold exchange is a crucial and necessary component of developing a healthy domestic gold market, contributing to the broader development of financial markets and the economy as a whole. This is even more important in periods when gold trading becomes highly active, as is currently the case.

However, Vietnam still does not have a national gold exchange. “This has long been a major concern for the VGTA and businesses in the sector,” he said, adding that establishing, managing, and operating a gold exchange in an effective and transparent manner would generate significant benefits for the public, investors, enterprises, and the economy.

In reality, most of the world's leading gold jewellery exporting countries operate national gold exchanges, such as China, India, and Turkey. Through the effective functioning of these exchanges, these countries are able to secure a stable supply of raw gold for jewellery manufacturing, create substantial employment, generate large foreign-exchange earnings, and make positive contributions to economic growth.

"Therefore, establishing a national gold exchange is a legitimate aspiration of Vietnamese gold businesses, particularly as many enterprises have already invested heavily in infrastructure, machinery, and human resources to expand jewellery production for export, while raw material supply remains unstable and insufficient," Bang stated.

The seminar presented valuable lessons from countries with long-standing experience in this field, enabling Vietnam to select, adapt, and apply strategies suitable to domestic conditions. The shared international experience comes from some of the world's most active precious metals markets, including Singapore, India, Turkey, Shanghai, and Hong Kong.

From an international perspective, Albert Cheng, CEO of the SBMA, saw the strong potential for cooperation between the two associations, both in policy implementation and market development, as Vietnam gradually strengthens its position as a key gold market in the region.

Cheng also highlighted Vietnam's positive progress in improving its regulatory framework through Decree No.232/2025/ND-CP, which revises Decree No.24/2012/ND-CP on gold market management; Circular No.34/2025/TT-NHNN, which provides detailed guidance for new policy implementation; and plans to establish and operate a national gold exchange or equivalent mechanism.

Drawing from Singapore's experience, he said Singapore followed and adapted Switzerland's model rather than copying it outright. "By 2030, Singapore aims to promote the development of a modern, open OTC gold market supported by high-standard storage infrastructure and, in the future, custody services for central banks. Its long-term goal is to position Singapore as Asia's alternative hub on par with London and Zurich in the global gold market," he said.

Cheng said there are many compelling reasons for businesses to base their gold trading operations in Singapore, such as: no GST (indirect tax) on investment precious metals; tax benefits for refiners, including GST suspension mechanisms for eligible imported shipments and other incentives; strong government support; and an open economy with one of the world's major financial systems.

Vinh Nguyen, director of precious metals trading at StoneX (Singapore), observed that Vietnam's gold market has long lacked strong integration with global markets. The new regulations, coming after more than 10 years, are expected to narrow the gap between domestic and international gold prices, establish pricing mechanisms more aligned with global markets, and move Vietnam closer to international standards. This will enable both domestic and international participants to engage more actively in Vietnam's gold market.

"The goal is to ensure price transparency for all market participants, while the government continues to manage and regulate the gold market step by step. Opening a gold exchange is only the first step; additional regulatory measures will be needed," he noted.

Regarding the establishment of a national gold exchange or further opening of the domestic gold market, Shaokai Fan, Asia-Pacific director at the World Gold Council, emphasised, "It is essential to address several fundamental questions. And another major challenge is ensuring that gold market activities do not disrupt key macroeconomic indicators, such as exchange rates or the balance of payments."