Market context and policy move

In recent months, Vietnam’s gold market has witnessed unprecedented volatility, with SJC bullion prices continuously setting new records, reaching as high as VND 127.7 million per tael on the selling side – the highest in history. Since the beginning of 2025, bullion prices have surged by nearly 50%, while plain gold rings have increased by more than 43%. This trend reflects not only global gold price fluctuations but also the persistent demand for gold hoarding among Vietnamese households, where a large volume of gold remains locked in safes rather than circulating in the market to generate added value. Against this backdrop, the Ministry of Finance has proposed reducing the export tax on gold jewelry and fine art items from 1% to 0%. This adjustment, which falls within the allowable 0%–10% tax bracket under the Law on Import and Export Duties, is expected to take effect immediately upon issuance. Experts view this move as both timely and necessary to ease business costs and foster the development of the domestic jewelry industry.

Strategic significance of a 0% rate

Bringing export tax on gold jewelry down to 0% is not just about eliminating a marginal cost for businesses; it carries strategic implications for the entire sector. First, it enhances the competitiveness of Vietnamese jewelry products in international markets, where major exporters such as India, Thailand, and China already hold significant advantages thanks to large-scale production, well-established brands, and lower costs. With a zero tax rate, Vietnamese firms can be more flexible in pricing strategies, expand their reach, and penetrate global consumer markets more effectively. Second, the policy encourages a shift in how gold is utilized domestically. Instead of being passively hoarded in the form of bullion, gold can be transformed into jewelry and decorative items that preserve intrinsic value while adding aesthetic and cultural appeal. This transformation generates higher added value, stimulates consumption, and reduces the stagnation of “idle gold” within the economy, a long-standing challenge for Vietnam’s financial system.

Expected economic impact

According to official estimates, cutting the export tax to 0% could result in a fiscal revenue loss of about USD 3.3 million per year, equivalent to VND 79 billion. However, from a macroeconomic perspective, this shortfall is considered a reasonable trade-off. Lower export costs allow businesses to reinvest in production, improve design quality, upgrade technology, and better integrate into global supply chains. Increased export volume not only brings in more foreign currency earnings but also creates employment opportunities in jewelry design, manufacturing, and retail, as well as in supporting industries such as gemstone cutting, packaging, and logistics. Over the long term, the jewelry sector could evolve into a key growth industry that contributes high added value to the national economy, moving away from an overreliance on bullion trading. In this sense, the tax reduction should be seen as an investment by the government in stimulating production and exports rather than as a simple fiscal loss.

Consensus among stakeholders

One crucial factor supporting the swift implementation of this proposal is the broad consensus it has received from ministries, government agencies, and industry associations. In fact, many enterprises in the gold and jewelry sector have repeatedly petitioned for lower export taxes to ease financial pressure. This alignment between businesses and regulators reflects both a clear market demand and an understanding that maintaining a 1% tax no longer provides meaningful regulatory benefits. When policy enjoys support from both regulators and those directly affected, the likelihood of rapid adoption increases, enabling businesses to seize opportunities amid current gold price volatility. Moreover, this consensus indicates a shift in regulatory philosophy: rather than focusing solely on controlling bullion transactions, the government is now prioritizing the promotion of jewelry production and exports, which generate higher added value and stronger contributions to economic growth.

A golden opportunity for Vietnamese enterprises

In summary, reducing the export tax on gold jewelry to 0% is more than a tax adjustment it is a long-term strategic initiative to elevate Vietnam’s jewelry industry. Amid soaring gold prices, the policy provides businesses with a significant competitive edge, encourages households to convert hoarded bullion into value-added products, and opens opportunities for expanding export markets. While the state budget may lose tens of billions of dong annually, the long-term benefits of fostering production growth, earning foreign exchange, and creating jobs are far more substantial. If implemented promptly, this policy will serve as a powerful catalyst for the Vietnamese jewelry sector to capitalize on the current “gold wave” and strengthen its position in the global jewelry market. For domestic enterprises, this is indeed a golden opportunity to break through in an era of deep economic integration.