Vietnam Gold Prices Smash Record at 190 Million Dong Per Tael in Legendary Surge

HANOI — Domestic gold prices in Vietnam have officially surpassed the historic threshold of 190 million VND per tael, marking a significant new economic and psychological milestone.

The price surge has triggered widespread public excitement, with many referencing the classic Vietnamese folk tale "The Golden Starfruit Tree," in which a bird pays for fruit with bags of gold.

This record-breaking spike occurred amid intense volatility in the domestic precious metals market. The frequent mention of the ancient fable during price hikes highlights the deep cultural connection many Vietnamese people maintain with gold as a traditional asset for storing wealth.

Market observers say the phenomenon underscores the link between cultural narratives and economic behavior as citizens react to ongoing market fluctuations.

The surge in domestic gold prices to a historic 190 million VND per tael is more than a statistical record; it is a clinical symptom of systemic dysfunction within Vietnam’s financial architecture. The staggering premium over international benchmarks—often reaching tens of millions of VND—underscores a profound decoupling of the domestic market and the failure of current regulatory mechanisms to maintain price parity.

The root of this volatility lies in the State Bank of Vietnam’s (SBV) rigid monopoly on the production of SJC-branded gold bullion. This supply-side constraint has created an artificial scarcity, leaving the market highly susceptible to speculation and manipulation during periods of heightened demand. Furthermore, the gold rush signals a deepening crisis of confidence in traditional domestic investment vehicles. With the real estate sector currently in a deep freeze and the equity markets characterized by chronic instability, investors are retreating into gold as the ultimate "safe-haven" asset to hedge against inflationary pressures and the continued depreciation of the Vietnamese Dong.

Public discourse surrounding the "Starfruit Tree" fable (Ăn khế trả vàng) reflects a complex psychological landscape: a mix of "irrational exuberance" and a well-founded fear of an imminent asset bubble. Like the tragic figure in the folk tale, investors are balancing the lure of rapid wealth against the risk of a catastrophic market correction.

To date, government interventions have remained largely reactive and ad hoc. Without addressing the structural distortions caused by a sequestered market and the existing bullion monopoly, policy adjustments will likely continue to treat the symptoms rather than the disease, failing to integrate Vietnam’s gold market with global economic realities.

The surge in gold prices in Vietnam is directly impacting remittance flows from the Vietnamese-American community. Sending USD back home—money often generated by small businesses in Little Saigon, from nail salons to phở restaurants—has become less efficient as domestic gold prices decouple from global rates. When relatives in Vietnam use these remittances to purchase gold at a steep premium, their actual purchasing power is significantly diminished. For Vietnamese-Americans holding gold assets in Vietnam, the situation is equally complex. While their net worth has increased on paper, they face heightened liquidity risks and the instability of a tightly regulated market. Deciding whether to liquidate holdings or continue holding assets while managing long-term plans—such as F2B family sponsorships or EB-5 investments—has become a difficult calculation amidst such unpredictable volatility.