SJC, Doji, PNJ, and Bao Tin Minh Chau, the biggest gold trading companies in Vietnam, were subjects of a recent inspection tour. 

The large Vietnamese gold market is fragmented with more market share belonging to small traditional gold shops throughout the country. Large companies with large networks in many cities and provinces, such as PNJ (Phu Nhuan Jewelry Company), Doji and SJC are expanding their market share. Some reports say the big players hold 30 percent of gold market share.

In previous years, SJC led in terms of turnover. However, the No1 position has recently been occupied by PNJ. The goldsmith company has been in the top position in terms of profit for a long time. In 2018, its profit reached VND960 billion, many times higher than that of Doji and SJC combined. 

In general, gold trading companies report profit increases amid gold price increases, heavy price fluctuations and bustling market. In most cases, the gap between buy and sell prices quoted by them is large, up to VND2-3 million per tael, when the market is feverish and turnover increases during this period.

The government of Vietnam has recently asked agencies, including the State Bank of Vietnam (SBV) and Ministry of Public Security (MPS), to apply measures to stabilize the gold market, which has seen SJC gold domestic prices VND11-20 million per tael higher than the world market.

PNJ reports profit of VND22.6 billion a day

PNJ has reported business results of the first four months of the year with accumulated revenue of VND16 trillion, up 33 percent over the same period last year, and accumulated profit of VND2.723 trillion, up 18 percent, or VND22.6 billion a day.

Its post-tax profit reached VND915 billion, an increase of 6.5 percent over the same period last year, or VND7.6 billion a day.

Just within four months, PNJ obtained a high 6.5 percent growth rate in post-tax profit, though profits of the same period last year were very high.

The goldsmith company plans to obtain revenue of VND37.148 trillion ($1.5 billion) and post-tax profit of VND2.089 trillion.

PNJ opened seven new shops and shut down other four in the first four months, raising its number of shops nationwide to 403. It is now present in 57 out of 63 cities and provinces.

Analysts believe the company made high profits because the market was hot in the first four months with domestic prices sometimes VND18-20 million per tael higher than the world market.

PNJ has been reporting steady profit increases over the last decade, from VND150-200 billion each year to VND2 trillion now.

Doji: huge revenue, modest profit

Doji’s hundreds of branches, shopping centers and sale agents bring tens or hundreds of trillions of VND in revenue. However, its profit is much lower than that of PNJ.

Its latest report showed that in 2023, Doji made a post-tax profit of VND491 billion, or VND1.3 billion a day, a decrease of 50 percent if compared with VND1.017 trillion in 2022, though it was still much higher than VND240 billion in 2021.

Its profits were VND150 billion and VND187 billion, respectively, in 2019 and 2020.

Doji made a relatively high profit in the last two years, when the economy has been facing big difficulties, the bond market has been quiet, the real estate market remains lackluster and bank deposit interest rates drop sharply. In such difficult conditions, hoarding gold is the choice of many people who have idle money.

Super-thin profit for SJC

The Saigon Jewelry Company (SJC) holds the exclusive right in manufacturing SJC bullion gold and SJC gold is VND10-18 million per tael more expensive than other brands. However, its business performance is not good.

SJC’s audited report showed that the company had a revenue of VND27.154 trillion ($1.1 billion) in 2022, but the profit was just VND49 billion.

Bao Tin Minh Chau incurs losses for many years

According to Cafebiz, in 2019, Bao Tin Minh Chau got a revenue of VND531 billion. Meanwhile, the revenue of many years before was just 50 percent of that of 2019. The goldsmith company took a loss in 2016-2018 and made a profit of VND1.2 billion in 2019.

Manh Ha