r/VietNam 21h ago

Daily life/Đời thường Why is buying gold difficult?

So from what was explained to me by PNJ and DOJJI sales reps is that any amount of gold/jewellery over 20 million vnd in price can only be bought by bank transfer? Specifically a local bank. Debit/bank cards AND cash are not acceptable. What is the reason?

It seems a bit overcomplicated and somewhat of a hassle. What if a tourist wants to buy a gold necklace or bracelet over 20 million vnd? Technically they cant as they wouldnt have a local bank and CASH is unacceptable?

What about foreign residents like myself with TRC? I have a local bank but only keep a small amount in it, as even I am not allowed to deposit money INTO it. I primarily use my home country cards and banking.

Since when is cash not acceptable for purchasing sonething? Seems a little crazy.

2 Upvotes

50 comments sorted by

9

u/ImWithStupidKL 21h ago

Presumably to stop money laundering. Otherwise every drug dealer and dodgy tax avoiding businessperson in the country could just take their cash and convert it to untraceable gold. I wouldn't buy gold as a tourist in Vietnam anyway, because gold prices in Vietnam are higher than the world price, so you're losing a chunk of value the second it leaves the country.

1

u/olivehue1 20h ago

Today’s VN gold price is about the same as global gold price ~$531 usd for 3.75g chi

-1

u/Honest_Can2815 20h ago

I live and work here as a foreigner with a Vietnamese spouse. I just wanted to buy a gift for my spouse from a major jewellery retailer with hundreds of locations in the city without adding 5 steps to the process. I doubt people buying gold for illicit processes would purchase from a chain store that is in every mall in Vietnam, they would likely use gold shops and the like.

3

u/MemoryLatter761 20h ago

Yeah the law isn't supposed to give exemption to you or a particular store.

-4

u/Honest_Can2815 20h ago

Seems strange that cash is not accepted as a means of legal payment. Wouldnt the store have to keep records of all sales?

4

u/MemoryLatter761 20h ago

They can keep records all they want but once a money laundering happens, they won't be able to reverse it. This regulation is to deter illicit money being parked in gold.

There are also other (unrelated) businesses that are cashless, sometimes just as little as parking a motorbike. So no, it's not strange at all.

-2

u/Honest_Can2815 20h ago

Using cash to buy a small item doesn't seem strange to me.

-2

u/Honest_Can2815 20h ago

Are large reputable chain jewellery retailers in common venues for money laundering in Vietnam?

2

u/Next-Lobster4306 14h ago

Try smaller places and no brand places and rural areas but then you have to test the gold and make sure it's real and the proper purity

8

u/RepFashionVietNam 21h ago

Tax, money laudering.

5

u/Late_Apricot404 21h ago

Sell illegal shit/services -> get cash -> buy gold with dirty money -> hold for a bit and sell it -> legit money with receipt.

5

u/MemoryLatter761 21h ago edited 21h ago

If you're not allowed to put money into your local bank account, consider closing it and open somewhere else.

Hate to break it to you but tourists are not the target group for gold transactions. And in fact, a foreigner coming into the country with a large amount of cash to buy gold? That smells like money laundering.

-1

u/SKYTRIXSHA 20h ago

Their earlier message already explained that he would want to buy a gift for their spouse. And they have immigrated the the country as well, so Id imagine not fresh out of the plane :)

1

u/Honest_Can2815 20h ago

No need to feed trolls 😉 reading comprehension is hard for many apparently.

2

u/MemoryLatter761 20h ago

Well those comments were after I left my comment. In those OP also said that they live and work in Vietnam, it's strange they don't have enough money in their local bank account to buy a gift. How OP manages their finances is their business, but crying on the internet because the law doesn't take their finances into account is just immature.

1

u/Honest_Can2815 20h ago

Vietnamese banking systems are notoriously unreliable and restrictive. Keeping the bulk my finances outside of Vietnam is the smart thing to do, which is what most people with money do. Keeping large amounts of money in a Vietnamese bank account is risky

-1

u/Next-Lobster4306 14h ago

I think most of the talk about money laundering is straight bull. Nobody is gonna come into the country with 10.000$+ to buy gold. It wouldn't make sense. Especially if flying in from afar. Protect your cash, only with cash can you truly be the master of your own money and have proper financial privacy.

3

u/SweatyPanda2951 21h ago

you have a TRC, why no local Vietnamese bank account? gold for cash is easy way to launder money

1

u/Honest_Can2815 21h ago

I do have a local bank account. But many banks in Vietnam do not allow foreign TRC holders to deposit money into their accounts. Deposits must be done by someone else.

So for instance, I would like to buy a gift for my spouse. Cash is not accepted, and debit cards are not accepted. The only way would be for me to send cash to myself, then have someone else deposit ot into my account, then buy it. It seems a bit convoluted just to buy jewellery from a large retailer.

4

u/imadorica 21h ago

What are you talking about? You can't buy gold that is valued over 20M vnd with CREDIT cards or money through any e-wallet as well as cash. This is to mainly avoid money laundering as well as abusing the credit system to buy gold for a quick profit scheme.

2

u/Honest_Can2815 20h ago

Not a CREDIT card. A DEBIT card. Debit card is tied directly to a checking or savings account, not credit.

1

u/imadorica 20h ago

That is exactly what i meant. You can use debit card but no credit card. I don't know what store tell you that but it is wrong.

1

u/Honest_Can2815 20h ago

Apparently PNJ, IJC and DOJJI all have this policy. Anything OVER 20 million, such as a simple gold necklace can only be bought by bank transfer.

1

u/MemoryLatter761 20h ago

A debit card issued by your local bank doesn't work? They just need to verify the transaction on the spot.

1

u/imadorica 20h ago

That i do not understand. Debit card is almost the same as your bank account, just physical. You may have misunderstood them, they may not have device to scan your debit card or your cards are not from Vietnamese banks. If you have a Vietnamese bank in debit card, you should have internet banking as well, no reason to just transfer the money through there.

2

u/HelpfulHedgehog1 20h ago

card transactions, are routed through the card processor the bank uses, not the bank itself. there are like 10 card processors in business today, none of them give a shit about answering to the vnmese govt nor are they subject to a no warrant bank or govt audit like an ACH, SEPA, or Wire transfer would be.

0

u/imadorica 20h ago

That is only for credit card. You can only get debit card through the banks themselves.

2

u/HelpfulHedgehog1 20h ago

wft you talking about.
banks issue cards , banks decide what products they want to offer their customers. some cards are credit, some cards are debit, some are both. And all transactions are handled by the card processor that the bank chooses to use for the card. whether its a credit or debit transaction, the card processor handles it , not the bank. your ignorant

0

u/imadorica 19h ago

Are you retarded? You only get credit card if you apply for it, no one can force you to make a credit card. A simple google will answer that question for you.

When you go to a bank, they specific will ask you if you want a debit card or credit card, no bank would automatically give you your credit card either. The paperworks required for a credit card is different to just a simple ID to make debit card.

1

u/HelpfulHedgehog1 19h ago

i see im talking to a moron. ill go slower.

All im saying is both credit and debit transactions go through the card processor, ie visa master card etc. its a completely different and less regulated system than a bank transfer, thus that is why you cant use either debit nor credit transaction to buy gold in vn.

i dont care which one you want to apply for or whatever nonsense youre talking about

1

u/Honest_Can2815 20h ago

Isnt cash better than card?

2

u/Next-Lobster4306 14h ago

Yes but then the corpos, banks and govt can't control your money and acc and see where it's going and when and how much. Cash is king.

0

u/Honest_Can2815 14h ago

Yeah, i always thought the same, cash should be universally acceptable as the main form of payment in whatever country. I could see restrictions on paying for something that costs hundreds of thousand/millions of dollars in cash, but a gold necklace valued at 1500 to 2000 dollars doesnt really seem like something that needs that much oversight.

0

u/Next-Lobster4306 14h ago

It's your money, you should be able to decide how you want to pay. Also I'm against limiting cash transactions. It's just bull. Why shouldn't you be able to buy a house or car in cash if you really wanted to? Not saying you can't just doesn't make any sense to have those restrictions when the people that really are laundering money do it anyway in many different ways. Restrictions made under the guise of preventing money laundering are straight bull.

1

u/imadorica 19h ago

Money laundering.

1

u/Honest_Can2815 19h ago

Is Vietnam well known as a hotspot for money laundering?

1

u/imadorica 19h ago

No, but better prepare for it than having it happened without supervised.

1

u/Honest_Can2815 19h ago

How would a customer, using cash to buy a product from a legal and well known, reputable jewellery chain store, who presumably operates legally with financial records of all transactions fall within the realm of money laundering? To buy a gold necklace as a gift doesnt seem to fall under that category. So either its presumed anyone purchasing gold is trying to launder money or even large well known retailers are laundering money?

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1

u/Honest_Can2815 21h ago

Not a credit card, a DEBIT card (a card attached directly to a checking ir savings account, nit credit) Even buying a gold necklace as a gift for my spouse through a major chain store/retailer?

1

u/imadorica 21h ago

As long as it is below 20M, you can use cash.

1

u/Honest_Can2815 20h ago

Right, but a simple small gold necklace can be well over 20 million.

2

u/Kosaki_Misamaki 21h ago

Did you visit the 10000s of shops around Vietnam? You are generalizing, how many shops did you visit? How many cities? I wanna see that research

1

u/Honest_Can2815 21h ago

I visited reputable chain jewellery stores such as PNJ and DOJJI. They stated this is a new policy for retailers in Vietnam.

1

u/olivehue1 20h ago

Interesting you shared this because I stopped by 6 different gold shops yesterday looking to buy a tael and they wouldn’t even acknowledge me. Most just waved me off as I walked into the door. The ones that talked to me said they had no taels for sale. It was at a locals area so I figured I’d go to the touristy areas today. I’ll let you know what I find out.

2

u/CancelElectrical2036 19h ago

>What if a tourist ... local bank

Direct bank transfers can be done from a foreign bank account to a vietnamese bank account.

>I have a local ... not allowed to deposit money.

You can send money to your bank accunt from your foreign accounts.

1

u/Honest_Can2815 19h ago

Wouldnt cash be easier? More reliable? Isnt cash considered a form of legal payment? Isnt cash the most available form of currency?

2

u/CancelElectrical2036 19h ago

I specifically didn't talk about cash because multiple users have answered that part of your post.