How Much Do Vietnamese Love Gold? Prices Doubled, and They Kept Buying

Over the past year, international gold prices surged nearly 70%. In Vietnam, the jump was even steeper -- domestic gold went from 85 million VND per tael to nearly 190 million VND, a rise of over 100%. That is roughly USD 7,500 per tael. Vietnam's premium over international prices is driven by long-standing supply constraints that widen the gap.

But Vietnamese buying enthusiasm has not cooled one bit.

Lining Up for Gold Is Now Routine

Every time gold prices spike, long queues appear at jewelry shops in Hanoi and HCMC. Some office workers take half a day off each month to stand in line. Others pay cash upfront and wait weeks for delivery. Shops regularly hang "sold out" signs.

Behind this is a deep-rooted gold obsession. According to government audit data, Vietnamese households privately hold about 400 metric tons of gold. Nearly 30% of families keep gold as savings. Here, gold bars and jewelry are not just investments -- they are dowries passed through generations, inheritances, and the most instinctive hedge against inflation.

Buying Less, Spending More

Behavior is shifting, though. The World Gold Council's latest report shows Vietnam's gold jewelry demand fell 29% year-on-year in Q4 2025, from 3.3 tons to 2.4 tons.

But here is the twist: spending actually increased. Global gold jewelry consumption by value rose 18% to USD 172 billion. People spent more money on less gold.

Another clear trend: consumers are shifting from jewelry to investment-grade bars and ingots. Jewelry processors are feeling the squeeze. When SJC gold bars run short, Vietnamese turn to 24K gold rings (vang nhan) as a substitute -- finding a way to buy gold no matter what.

Weddings Are Becoming Financial Disasters

The sharpest impact of soaring gold prices falls on families preparing for weddings.

In Vietnamese tradition, the groom's family typically prepares one to five taels of gold as a bride price, not counting the bride's jewelry. Two years ago, one tael cost about 65 million VND. Now it is approaching 190 million. The minimum one-tael bride price alone comes to roughly USD 7,500.

The numbers from wedding planners are bleak: cancellations and postponements jumped over 30% in 2024, primarily due to gold prices. Some brides have publicly said they no longer expect matching return gifts in gold, because it would only become a burden. Young people are starting to question the tradition entirely -- wondering if life would be easier untethered from gold prices.

Borrowing Gold to Build a House, Now Unable to Repay

In rural Vietnam, there is a distinctive informal lending practice: families borrow gold bars -- not cash -- often to build houses.

One homeowner borrowed four gold bars in 2022, worth about USD 10,000 at the time. Three years later, that debt has ballooned to USD 29,000, while his monthly income is under USD 700. Stories like this are not rare.

But gold has also created surprise winners. A 74-year-old retired woman spent decades steadily buying and saving gold. Her children used to mock her stubbornness. Now her holdings have multiplied several times over, and the family has gained new respect for her old-fashioned wisdom.

How Do Young Vietnamese See Gold?

Vietnam's jewelry market is going through a generational shift. Traditional consumers still treat gold as the family safety net. But millennials and Gen Z think differently -- for them, jewelry is a form of self-expression, not an asset locked in a safe.

These younger buyers prefer diamonds, minimalist designs, and even gender-neutral pieces. TikTok, Instagram, and Shopee live-streams are their main channels for discovering brands. Leading local jeweler PNJ (Phu Nhuan Jewelry) has leaned into the trend, partnering with Emoji Company for emoji-themed gold and silver accessories.

Overall, Vietnam's jewelry market hit USD 1.13 billion in revenue in 2025. Nearly 90% of that is non-luxury spending, with growth driven by this new generation of buyers.

Government Steps In

Facing market disorder, the Vietnamese government has taken several actions:

First, Decree 232 ended SJC's long-standing national monopoly on branded gold bars, allowing more players into the market to narrow the domestic-international price gap.

Second, authorities are studying the creation of a gold exchange, modeled on international practices, to increase transparency.

Third, a personal income tax amendment draft proposes for the first time a 0.1% tax on gold bar transfers to curb speculation.

Whether these policies cool the market remains to be seen. In the past, the State Bank of Vietnam tried auctioning gold bars to boost supply, but with limited effect -- only 15% of auctioned gold was actually sold.

Will Gold Prices Keep Climbing?

Most international banks say yes. By late January, gold broke through USD 5,000 per ounce. Deutsche Bank, Bank of America, and Societe Generale have year-end targets at USD 6,000. Goldman Sachs raised its forecast from USD 4,900 to USD 5,400 in late January, acknowledging the actual trajectory could go higher.

As of late January, Vietnam's SJC gold bar has surpassed 190 million VND per tael. A return to the days of affordable gold buying looks unlikely anytime soon.

For Vietnamese, gold is both a faith and a source of anxiety. As prices rise, the number of buyers does not necessarily shrink -- but the way they buy and the mindset behind it have already changed.

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