PNJ: Gold Bar Prices Fall to Two-Month Low as SJC Sells at VND 142 Million

Overview

Gold bar prices in Việt Nam fell to their lowest level in more than two months on 20 October, with SJC selling at VND 142 million per tael, tracking a decline in world gold ahead of the US Federal Reserve meeting. PNJ (HOSE) quoted plain gold rings at VND 138-141 million per tael, the only major brand pricing below SJC. Separately, Decree 390 lowered the cashless payment threshold for gold transactions to VND 5 million from 16 October.

Key Facts

• SJC listed gold bars at VND 139-142 million per tael on the morning of 20 October, down VND 1.1 million from the prior day’s close and the lowest since 5 August.
• SJC plain gold rings fell VND 1.1 million to VND 138.2-141.2 million per tael; PNJ quoted VND 138-141 million, below SJC.
• Bảo Tín Minh Châu and Bảo Tín Mạnh Hải quoted rings at VND 138-142 million; DOJI at VND 138.5-142.5 million.
• World gold closed 19 October at USD 4,139 per ounce, down more than USD 24 on the week, and eased to USD 4,135 per ounce on 20 October.
• Converted at Vietcombank rates, world gold equates to about VND 130 million per tael, leaving domestic prices more than VND 12 million above international levels.
• Decree 390, effective 16 October, requires cashless payment for gold purchases and sales of VND 5 million or more per day, down from VND 20 million.
• Domestic silver bars fell 1.2% on the day, with Phú Quý and Ancarat quoting VND 1.98-2.04 million per tael.

What Happened

Saigon Jewelry Company (SJC) cut its gold bar quote by VND 1.1 million per tael to VND 139-142 million on the morning of 20 October, according to the company’s published price board. Other brands made similar adjustments. The move followed a decline in international bullion, which settled at USD 4,139 per ounce on 19 October and slipped further to USD 4,135 per ounce the next morning, as investors awaited monetary policy signals from the Federal Reserve meeting the following week. A stronger US dollar and higher US Treasury yields also weighed on the metal.

In the plain ring segment, PNJ was the only brand quoting below SJC, at VND 138-141 million per tael. The article also cited Decree 390, which from 16 October requires non-cash payment for gold transactions of VND 5 million or more per day, replacing the previous VND 20 million threshold. The decree additionally opens the door for jewellery manufacturers and processors with foreign processing contracts to be considered for licences to import raw gold. The report did not cite a specific regulatory filing beyond the decree.

Market Context

PNJ trades on HOSE and closed at VND 19 on 20 October, up 2.16% on volume of 3.29 million shares, moving against the softer bullion price. The domestic-international spread of more than VND 12 million per tael remains wide by historical standards, a persistent feature of the local market that supports jewellery margins but exposes retailers to reversal risk if world prices rebound. Gold-related equities in Việt Nam typically trade with a lag to spot moves, and the day’s gain suggests the market is focused on the payment rule change rather than the price decline itself.

Strategic Significance

For PNJ, the key variable is not the direction of bullion but the width of the domestic premium and the volume of retail transactions. A narrower spread compresses gross margin per tael on gold bars and rings, while the lower VND 5 million cashless threshold pushes small retail buyers toward bank transfers and e-wallets, raising compliance and reconciliation costs across PNJ’s store network. Over time, formalising payments could shift share toward larger, better-integrated chains such as PNJ and away from informal outlets, but the near-term effect is higher operating friction during the transition. The raw-gold import provision, if applied to PNJ’s processing operations, would ease input sourcing constraints.

What to Watch

• PNJ’s third-quarter earnings release and any disclosed change in gold segment gross margin.
• The domestic-international gold spread, currently above VND 12 million per tael, and whether it narrows toward historical averages.
• Guidance from the State Bank of Việt Nam on implementing Decree 390, including enforcement of the VND 5 million cashless threshold.
• The Fed meeting outcome and its effect on the US dollar and Treasury yields, the main external drivers of bullion.
• Any licensing decisions on raw gold imports for jewellery processors under the new decree.