The National Assembly of Vietnam has directed the government to construct a strategic plan for establishing a gold trading exchange. This endeavor is in response to the escalating prices of gold and aims to control and regulate the bullion market.
The Need for a Gold Exchange
Lawmakers have been emphasizing the importance of such an exchange in order to guarantee transparency in gold trading. This concern arises from the current market situation where the gold price in Vietnam is approximately 15% more than the global rates.
The State Bank of Vietnam’s Plan
The State Bank of Vietnam has introduced a plan to instigate a gold trading platform in three successive phases. The first phase involves trading raw gold, followed by trading gold bars in the second phase. The final phase will encompass trading gold certificates and derivatives.
Current Gold Market in Vietnam
The Saigon Jewelry Company recently listed the price of gold slightly lower than the highest peak recorded on Dec.1, at VND154.7 million (US$5,873.31) per tael of 37.5 grams. Furthermore, the price of gold in Vietnam has increased by more than 80% since the start of the year.
In an effort to liberalize the market, the government in October lifted its monopoly on gold production. Private firms meeting specific financial criteria are now allowed to produce bullion.
Questions & Answers
What is the new directive given by The National Assembly of Vietnam?
The National Assembly has directed the government to establish a gold trading exchange to control the bullion market and ensure transparency amid rising gold prices.
What is the plan of the State Bank of Vietnam regarding the gold trading platform?
The State Bank of Vietnam intends to set up a gold trading platform in three phases. These include trading raw gold initially, followed by gold bars, and finally gold certificates and derivatives.
What changes have occurred in the gold market in Vietnam recently?
Two significant changes have taken place. First, gold prices have risen by more than 80% since the start of the year. Second, the government has lifted its monopoly on gold production, now allowing private firms, that meet certain financial conditions, to produce bullion.
