At the Ministry of Finance’s (MOF) third-quarter press conference, Luu Duc Huy, Deputy Director of the Tax Policy, Fees, and Charges Management Department, said that after consulting with the State Bank of Vietnam, the Ministry proposed including a personal income tax (PIT) on gold bar transfers in the draft amendment to the PIT Law, while exempting raw gold, jewelry, and fine arts gold. The initial proposed tax rate is 0.1 percent of the transfer value.

Regarding implementation timing and tax rates, Huy said under the draft law submitted to the National Assembly, these issues will be determined by the government.

Nguyen Quang Huy from Nguyen Trai University praised the Ministry’s proposal to tax gold bar transfers which reflects the state’s efforts to manage a gold market prone to speculation and volatility.

Gold bars are primarily used for hoarding or short-term speculation. Taxing gold bar transactions is necessary to enhance transparency, curb short-term trading, and increase the contributions to state revenue.

However, Huy noted that for most people, buying small amounts of gold for savings is a traditional practice tied to financial security and precaution. Therefore, policies should include exemptions or reductions for long-term holders of small quantities, thus protecting legitimate public interests while showing humane governance. 

This ensures the state does not aim to penalize safe hoarding, but regulates large-scale speculative activities.

To improve effectiveness in management, Huy emphasized the need to digitize all gold transactions. Digital management not only facilitates transparent tax collection but also lays the groundwork for future taxation based on profit margins (buy-sell differences) rather than transaction values. This would be a fair approach consistent with international standards.

At the same time, the State Bank needs to regulate gold supply and demand sensibly, expanding alternative financial products like gold accounts or certificates to reduce reliance on physical gold. When people have safer investment options, the gold market will stabilize, and the capital allocation in the economy will become more efficient.

Is the 0.1 percent tax rate too low?

Nguyen Ngoc Tu, a lecturer at Hanoi University of Business and Technology, said the proposed 0.1 percent tax on gold bar transfers is somewhat low. This rate is currently equal to that applied to stock transfers and lower than taxes on real estate transactions, which may not be sufficient to prevent speculative behavior.

According to Tu, small businesses engaged in wholesale or retail of general goods already face a 0.5 percent tax, while gold is a commodity the state does not encourage for investment. Its transfer tax, lower than that for food, medicine, or milk businesses is questionable.

“A 0.5 percent tax rate on gold bar transfers would be more reasonable,” Tu suggested.

Huy, however, argued that the 0.1 percent rate proposed by the Ministry of Finance is a reasonable starting point. He believes the rate is low enough not to shock the market or alarm the public, while still achieving two goals. 

First, it establishes a mechanism for transparency, ensuring all gold bar transactions are recorded and monitored. Second, it provides a foundation for observing market behavior and gradually adjusting policies based on real conditions.

Still, if the goal is specifically to deter short-term speculation, Huy noted that 0.1 percent is only a preliminary warning, as expected returns from speculation are usually much higher. Thus, tax alone is not a silver bullet, but it must be part of a broader strategy that includes a robust regulatory system and safe alternative investment channels.

Huy offered strategic recommendations, such as a flexible tax roadmap. The 0.1 percent rate should be a starting point, and if the market remains highly volatile after implementation, gradual increases or taxation based on profit margins could be considered.

He also suggested a humane tax exemption threshold for small-scale hoarding (e.g., 1 tael per year) to protect traditional saving habits, especially in rural areas. Incentives for long-term holding, such as tax exemptions or reductions for gold held over extended periods, could promote stability over short-term trading.

Finally, he encouraged the development of safer financial products like gold certificates, gold ETFs, flexible government bonds, providing people with more transparent and stable investment options.

Changing the mindset from hoarding gold to smart investing will also require financial education in schools and better communication via social media.

Nguyen Le