Vietnam Gold Demand Surges Amid Economic Uncertainty
The comments below are an edited and abridged synopsis of an article by Tyler Durden
The Vietnamese government is intensifying its crackdown on private gold ownership as Vietnam gold demand reaches new heights, driven by deep financial distrust, inflation pressures, and cultural tradition. Across the country, citizens increasingly view physical gold as a safer and more reliable store of value than the Vietnamese dong, with one buyer telling Bloomberg, “I feel safer holding gold.” This sentiment has become widespread, reflecting a longstanding belief that gold provides stability when the economy does not.
For years, Vietnam tightly controlled its bullion market through a state monopoly. Only the State Bank of Vietnam could import gold, and only one brand—SJC—was authorized to produce gold bars. This restricted system caused domestic prices to trade at a significant premium to global rates, often 10–15% higher. When Vietnam gold demand spiked—driven by global uncertainty, rising prices, and personal financial caution—the market became even more stressed.
In 2025, the government implemented reforms aimed at liberalizing the market. Licensed firms and commercial banks were permitted to import and trade gold, a sharp departure from long-standing restrictions. However, these reforms came with tight limits, including import quotas, strict licensing rules, and requirements that large transactions be conducted by bank transfer rather than cash. These measures aim to calm speculative activity while enabling limited new supply.
Despite these steps, supply remains far below demand. Vietnam officially imported only 13.5 tonnes of gold last year, while the market requires more than 55 tonnes to satisfy consumers. This imbalance keeps domestic prices elevated and reinforces the perception that gold is scarce and worth hoarding. As gold demand in Vietnam intensifies, many citizens are purchasing small amounts at a time, following the long cultural practice of accumulating gold for family security, weddings, and generational wealth.
To curb hoarding and stabilize the market, the government is considering even more aggressive measures. A proposed 10% tax on gold purchases is under review, and the Prime Minister has ordered nationwide inspections to crack down on illegal trading, speculative behaviour, and price manipulation. These actions are not only financial, they are also political, functioning as a visible assertion of state authority over a market that has outgrown official control.
Yet public demand remains unshaken. Gold stores across Vietnam have reported long queues, shortages of bars, and restrictions that allow customers to buy only jewelry instead of bullion. For many Vietnamese, these obstacles only strengthen their resolve. One 67-year-old shopper told reporters she needed gold for her son’s wedding and was determined to secure it despite limited supply. This behaviour reflects an unchanging reality: Gold demand in Vietnam is rooted not in speculation, but in lived experience with inflation, economic instability, and sudden policy shifts.
Ultimately, Vietnam’s crackdown reflects a struggle between state policy and public behaviour. While the government seeks stability, people seek security—and in Vietnam, security means gold. For millions, gold is not a luxury or an investment. It is protection, tradition, savings, and survival. And no amount of regulation is likely to change that anytime soon.
BMG Note: The Growing Opportunity for Gold
The recent developments in Vietnam’s gold market highlight a broader global trend that strengthens the long-term opportunity for gold. As the Vietnamese government intensifies its crackdown on private gold ownership—imposing tighter controls, restricting market access, and attempting to narrow the gap between official prices and street prices—one message stands out clearly: Gold remains a powerful form of financial protection in uncertain times.
Despite government pressure, Vietnamese citizens continue to hoard gold as a shield against currency instability, inflation, and financial repression. This behaviour is not new; Vietnam is historically one of the world’s most gold-centric cultures. However, what makes the current situation significant for investors globally is why citizens are acting this way: a lack of trust in fiat currency, accelerating living costs, and fears of further devaluation. These pressures are not unique to Vietnam; they are increasingly visible worldwide.
For BMG investors, this serves as a reminder of gold’s most important characteristic: It is one of the few financial assets that is not simultaneously someone else’s liability. When confidence in monetary and political systems erodes, gold becomes the natural refuge.
Three major insights from the Vietnam story support the opportunity for gold today:
1. Rising Global Demand for Wealth Preservation
Vietnamese households are turning to gold for the same reasons Western investors are quietly increasing allocations: weakening currencies, structural deficits, and increasingly interventionist governments. As trust in institutions declines globally, the appeal of a borderless, censorship-resistant asset grows stronger.
2. Market Suppression Doesn’t Stop Demand, It Increases It
History shows that government attempts to control or restrict gold ownership typically backfire. Premiums rise, black-market activity increases, and demand intensifies. Vietnam is experiencing this now as citizens willingly pay 20–30% above the official price to secure physical metal. This reflects a broader truth: When people fear financial instability, they don’t wait for permission to protect their wealth.
3. Physical Gold Remains in Tight Supply
The persistent premium in Vietnam is another indicator of what we see globally—tightness in the physical market. Whether through retail premiums, central bank accumulation, or reduced Western vault inventories, the underlying trend is the same: Physical gold is becoming harder to source at scale. When supply tightens while macro pressures build, the long-term upside for gold strengthens.
Conclusion
The situation in Vietnam is not an isolated local story; rather, it is a window into the global future. As more governments struggle with inflation, debt burdens, and weakening currencies, demand for true, tangible stores of value will continue to rise.
For investors, the message is clear:
Gold is emerging as one of the most important strategic assets of the coming decade, and the opportunity remains compelling.
