Nation to establish gold trading floor

Viet Nam is to establish a national gold trading floor. The proposal from the Bank for Investment and Development of Viet Nam (BIDV) comes as part of a move to replace the current climate of speculation and turmoil with a transparent gold market.

BIDV official Nguyen Manh said the move was necessary given that some of the world’s largest gold traders were based in Viet Nam. Without regulation, they would face unacceptable risks in the future.

The floor would allow authorised agencies to accurately and actively control supply and demand in the gold market as well as related cash transactions and deal with any volatilities, he said.

The trading floor will operate as State-owned single-member limited liability company specialising in gold. Any individuals or gold trading enterprises will register selling or buying gold through the floor trading system.

There will also be systems and regulations governing transactions and payment, storage, transportation and gold quality.

According to the BIDV, the project is based on structural studies of the local market and those of other countries. — VNS

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