Vietnam has announced a significant shift in its economic policy by ending a 13-year state monopoly on the production and trade of gold bullion. This change will allow private entities, licensed by the central bank, to engage in gold production, export, and import activities. In 2020 and especially since the Russian invasion of Ukraine, global gold prices have reached unprecedented highs. This increase is being driven by the growing tensions between the U.S. and China.
The move is believed to increase competition in the internal Vietnamese gold market. By allowing private companies to operate, the Vietnamese government aims to create a more dynamic trading environment that could attract foreign investment. This apparent turnabout mirrors a trend throughout the rest of the region. Countries are busy reforming their gold regulations to create the best possible environment to reap the benefits of rapidly changing market conditions.
Taken together, these recent changes in the global gold market point to increased demand. Chinese buyers are particularly snapping up what’s called ‘stateless’ gold. This alarming term refers to gold for which ownership cannot be traced back, responsible for a record amount of purchases when the world is facing geopolitical turmoil. With increasing tensions between the U.S. and China, gold has become an attractive safe-haven asset and demand by investors has skyrocketed.
Meanwhile, Indonesian gold miners are feeling bullish as they expect a booming 2025. This is because a recent spike in gold prices has driven significant investment into new mining operations throughout the archipelago. Indonesia’s gold industry is poised to benefit from the rapid increase in international demand for gold. Now, with prices cresting new all-time highs, is the time to grow!
Over the past year, Japan has seen a major spike in gold exports, prompting worries over possible large-scale smuggling operations. The increase is an indication that people are finding alternatives to official mechanisms to take advantage of the soaring costs. As countries increase their regulations and monitoring of gold trade, these operations will likely only grow.
And in Australia, it’s gold that’s on track to soon become the country’s second largest export, overtaking coal. If the current trajectory of gold prices is any indication, we are looking at a strong enough gold market that can reshape Australia’s export landscape. Gold’s longstanding allure as the ultimate safe-haven investment during periods of crisis has fueled this proactive pivot.
Vietnam’s central bank will now regulate the recently opened gold bullion trade and production market. By granting licenses to private entities, the government hopes to foster transparency and accountability while encouraging innovation within the sector.