Gold market management in Viet Nam: Lessons from China and the Shanghai Gold Exchange model

Abstract

Following Decree No. 24/2012/ND-CP of the Government dated April 3, 2012, Vietnam’s gold market has been subject to tight regulation, yet has revealed someissues, including a lack of flexibility, persistent price gaps with the international market, and a constrained supply of gold bullion. In the context of Vietnam’s ongoing consideration of adjustments to its gold market management framework and the potential establishment of a gold exchange, this paper employs a secondary data analysis approach, synthesizing relevant legal documents, official reports, and academic studies to examine China’s experience in gold market management, with a particular focus on the Shanghai Gold Exchange model and the controlled gold import mechanism. Based on a comparison with Vietnam’s practical context, this study proposes four policy recommendations to promote a more transparent and efficient gold market in Vietnam while maintaining effective state risk control, including the establishment of a centralized physical gold exchange, reform of the gold import licensing mechanism, enhanced transparency of transaction data, and the standardization of gold bar quality.