People purchase gold at a store of Bảo Tín Mạnh Hải in Hà Nội. — VNA/VNS Photo Trần Việt

HÀ NỘI — Experts have urged caution over a proposal to pilot gold certificates to mobilise household gold holdings for longer-term investment, warning that inadequate safeguards could expose the financial system to liquidity risks and undermine public confidence.

The proposal was raised by National Assembly (NA) Deputy Lê Hoàng Anh of Gia Lai Province during an NA debate on socio-economic development on October 30 as Việt Nam seeks demand for capital to drive growth and is seeking to diversify funding sources and reduce reliance on bank credit.

He cited statistics that Việt Nam’s outstanding credit was equivalent to around 155 per cent of gross domestic product (GDP), while nearly 80 per cent of mobilised funds had maturities of less than 12 months.

Household deposits exceeded VNĐ11.2 quadrillion (US$425 billion), while Vietnamese residents were estimated to hold around 500 tonnes of gold, equivalent to approximately 12 per cent of GDP. Corporate bonds, meanwhile, accounted for about 11 per cent of GDP.

"The problem is not a lack of capital but a lack of channels to direct capital into the economy," Anh said, proposing research into a pilot gold certificate scheme alongside other measures to develop longer-term funding sources.

How to mobilise household gold holdings and channel them into productive investment has been under scrutiny in recent years. In late 2025, the State Bank of Vietnam (SBV) announced plans to pilot a gold exchange in three phases.

However, in its latest report to the NA, the central bank said it had proposed to the Prime Minister that the exchange should not be established at this stage, with further research and refinement of the proposal to continue under an appropriate roadmap.

Economist Lê Bá Chí Nhân said on October 31 that while the proposed gold certificate scheme could help mobilise domestic financial resources, it would require careful policy design.

Gold held by households should not automatically be treated as available investment capital, as people also use it to preserve wealth, hedge against inflation and protect against economic uncertainty, Nhân said.

Any scheme should encourage voluntary participation rather than seek to mobilise gold at all costs, he said, stressing that what is important is a sufficiently trustworthy mechanism to encourage voluntary participation.

Under a proposed model, individuals would deposit physical gold with licensed institutions and receive certificates confirming their ownership or entitlement to an equivalent quantity of gold. Issuing institutions could then convert some of the deposited gold into cash for investment in production, infrastructure and other economic activities.

But Nhân warned that the certificates must guarantee ownership rights, liquidity and clear redemption arrangements and should not be used for speculation or to profit from price differences.

He pointed out risks related to liquidity during periods of gold price volatility, price fluctuations, differences between domestic and global prices, storage costs, potential losses of physical gold and the possibility of issuers becoming unable to meet their obligations.

Three principles must be considered in any pilot scheme, which are: participation must remain voluntary, mobilised gold must not be used for speculation, and issuing institutions must have adequate backing assets and independent supervision, Nhân said.

Banking and financial expert Nguyễn Trí Hiếu also supported further research into mobilising household gold, but said the process needed a clear roadmap and a strong foundation of market confidence.

He suggested the SBV could study issuing gold certificates through commercial banks, with a commitment to redeem the certificates for the quantity of gold deposited or its cash equivalent.

The domestic gold market should also become more transparent, particularly through the development of an organised gold exchange, Hiếu said.

Việt Nam previously permitted credit institutions to mobilise and lend gold but phased out these activities between 2011 and 2013. The decision stemmed from rising risks to the banking system, the increasing use of gold as a parallel store of value, and subsequent complications for monetary policy management. — VNS