Gold prices in Vietnam are much higher than international prices, driven by a supply-demand imbalance and price manipulation. A tael (37.5g) of gold in Vietnam is about US$500 more than in the rest of the world.

When the domestic gold market is in short supply but gold cannot be imported through official channels, there is a risk of smuggling.

The Vietnam Gold Trading Association has proposed the establishment of a gold exchange aimed at creating connectivity between global and local gold prices to ensure there is no major price difference and to fight against gold smuggling.

Having sold 20 taels of gold for more than one billion dong, Nguyen Hong Minh in Hanoi doesn’t know what she would do with the money.

Though the gold price has soared recently, gold miners have mysteriously incurred losses.

Experts say investors should target investment channels with high liquidity such as savings accounts, gold and dollars, and wait patiently for opportunities with stocks.

Depositing money at banks is prefered by most people who have idle money. However, it is now less attractive than corporate bonds and gold.