Gold is becoming big business in Viet Nam. High profits and demand for gold trading have prompted four banks and a jewellery company to open five new gold trading floors here and in HCM City in the next three months, according to the Viet Nam Gold Trading Association.

The floors are expected to become big rivals of the two existing ones run by the Asia Commercial Bank in Ha Noi and HCM City.

Dinh Nho Bang, general secretary of the gold association, said they would improve real-time trading, transparency and technology. He added that they would reduce trading fees to attract business.

The vice director of the foreign exchange department at the State Bank of Viet Nam, Phi Dang Minh, said transparency in listing and trading was really important.

However, he noted there were no specific regulations to regulate gold trading accounts, which could harm traders if problems arose.

Later this month, he and representatives from commercial banks plan to go abroad to gain more experience.

Those interested in starting gold bourses are Eximbank, Viet A Bank, Sacombank – and the Phu Quy Jewellery Co.

Trading gold on ACB’s gold floors is an example, with daily trade of up to 420,000 gold taels worth VND8 trillion (US$500 million). ACB gets VND4,000 per trading tael. With over 2 million traders, ACB could gain VND1.6-1.8 billion ($100,000-$112,500) per day.

(Source: VNS)

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