In recent developments, following the Prime Minister’s directive to increase market surveillance of gold trading activities, a growing number of private gold shops in Ho Chi Minh City have closed down or paused operations temporarily to avoid detection and monitor market conditions.
Closures out of Apprehension!
On April 17, as observed by a reporter from Nguoi Lao Dong Newspaper, multiple jewelry shops around An Dong Market (District 5) and along Nguyen Duy Duong Gold and Gem Street (District 5) remained closed without explanation. Only a few displayed signs indicating a temporary break.
Even within An Dong Plaza Trade Center (District 5), previously known for its bustling gold stalls, the atmosphere was subdued due to several shops suspending operations, despite one or two employees being present outside. When we approached to inquire about buying or selling gold, these individuals did not respond; some requested that we return later but did not specify a time.
Similar occurrences were noted along Pho Co Dieu – Thiec Market (District 11), Nhieu Tam – Gold Street (District 5), An Duong Vuong (District 5), and Bui Huu Nghia (Binh Thanh District), where several gold shops began closing their doors from April 17.
In the Tan Dinh Market area, a few gold shops also started closing, although they had been operating normally just days prior. Posing as a customer seeking to sell gold rings, we visited T.P.T. Gold Shop near Tan Dinh Market, only to find it closed. Phone calls to the shop also went unanswered.
Several gold shops at An Dong Plaza (District 5, Ho Chi Minh City) have closed their doors. Photo: LE TINH
A business (DN) with two gold shops in the An Dong Market area reported that while only about 30% of gold shops had closed a few days earlier, that number had now risen to around 50%. Many gold shops without any violations have also closed due to the psychological fear of being inspected.
Mr. Linh, the manager of a gold shop at Thiec Market, stated that the primary reason for the mass closures was the sale of jewelry items designed to resemble famous fashion brands. If inspected by market surveillance forces, these shops would likely face penalties. Inoltre, the authorities’ focus on verifying the origin and documentation of products, along with news of fines imposed on several jewelry shops, has instilled fear within the industry. “In the event of an inspection, if the shop lacks proper documentation or is found to have non-compliant products, heavy fines ranging from tens to hundreds of millions of VND will be imposed. The most severe consequence is the confiscation of goods. Shops operating with complete documentation have less to worry about,” Mr. Linh explained.
The remaining open jewelry shops have noticeably sparse displays, showcasing only chains, rings, bracelets, and basic jewelry. Some shops have even reduced their display counters and now operate from a single booth.
Meanwhile, a representative from the Ho Chi Minh City Market Surveillance Department affirmed that the recent temporary closures of certain gold shops would not significantly impact their inspection and surveillance activities. These efforts are carried out according to a comprehensive plan, and once these shops resume operations, the surveillance forces will continue to monitor and inspect them as they would any other establishment.
Addressing the Issue for a Healthy Market
Having operated a gold shop for several years, an owner at An Dong Market expressed no concern about government inspections, acknowledging them as a routine annual occurrence. However, the current wave of inspections has resulted in more frequent visits following the government’s call to regulate the gold market. The ongoing inspections have further strained the already difficult market conditions for gold jewelry. In recent times, consumer demand has primarily focused on gold bullion and gold bars, while gold jewelry and artwork have experienced a slowdown. “Each gold shop offers hundreds of products with varying designs, styles, and qualities. During an inspection, even if a shop has only a few non-compliant products, it could still face fines, sealing, or even confiscation. This is a major concern for us as business owners. For many years, we have strictly adhered to quality standards for gold jewelry and artwork. Any shop found to be dishonest would face immediate ostracism from the gold trading community,” the shop owner explained.
The increasing number of jewelry shop closures has also created challenges for individuals seeking to buy or sell gold or jewelry. Ms. Tham, a resident of District 5, visited An Dong Plaza to sell a 24K gold ring at a shop called A.T. but was turned away due to the shop being closed. “Gold prices have skyrocketed, so I came to sell my 24K ring to make a profit. However, I found many shops closed. Selling to other shops is an option, but they often offer lower prices since it’s not their own merchandise,” Ms. Tham stated.
The practice of “buy where you sell” has been a defining characteristic of the gold jewelry market. Consumers who purchase gold from one shop and then attempt to sell it to a different gold shop often face lower prices or outright refusal. Some shops even resort to cutting the gold item to test its purity and age before agreeing to purchase it. This process can be inconvenient and disadvantageous to customers.
Gold expert Tran Duy Phuong highlighted that the “buy where you sell” practice is not exclusive to gold shops but also prevalent among branded gold companies like SJC, DOJI, and PNJ. “The high intrinsic value of gold means that even a slight deviation in weight or purity can yield significant profits. As a result, businesses and gold shop owners tend to be wary of products from other companies. However, most gold shops adhere to weight, gold purity, and stamping requirements for gold jewelry and artwork before releasing them into the market,” Mr. Phuong explained.
The Vietnam Gold Traders Association (VGTA) acknowledged that the quality of gold from businesses, particularly small and family-run operations in various locations, remains inconsistent. This inconsistency perpetuates the widespread practice of customers purchasing gold jewelry from one shop and selling it back to the same shop due to concerns about quality and recognition.
Mr. Nguyen Ngoc Trong, Director of New Partnership Gold Company (NPJ), noted that since the implementation of Decree 24/2012/ND-CP on Gold Market Management and Circular 22/2013/TT-BKHCN of the Ministry of Science and Technology on measurement management in gold trading and quality management of gold jewelry and artwork, the market has witnessed improvements in quality. However, the current wave of inspections and surveillance has the potential to further regulate the market, fostering transparency and fair competition among businesses. Mr. Trong emphasized the need for gold businesses to adapt while also calling on the government to provide guidance and support to help them rectify violations and resume ethical trading practices. “For many years, the issue of the origin of raw gold used in
