Gold Bar Production by Banks: An Opportunity for Vietnam’s ‘Jewelry King’ to Perform Outsourcing?

VNDirect’s report predicts PNJ will achieve a revenue growth of 10.8% by 2026 due to a strong recovery in demand following economic stimulus measures such as increased infrastructure spending and VAT cuts. PNJ’s same-store sales, which dropped to 3.4 billion VND in Q2 2023, are expected to rebound to 3.7-5.2 billion VND from Q2 2025. The new banking policies allowing for gold bar imports and production could facilitate PNJ as they possess the experience and facilities for production. Some banks are considering outsourcing due to lacking equipment and expertise. The gold import policy will also reduce material costs, thus supporting PNJ’s gross profit margins, particularly during the upcoming wedding season. Decree 232, which removes the state monopoly on gold, enables jewelry businesses, including PNJ, to leverage the market more efficiently.