National gold exchange to be set up

The National Financial Monitoring Committee (NFMC) has submitted to the Government a project to set up the National Gold Exchange based on the proposal of the Bank for Investment and Development of Vietnam (BIDV).

The exchange is expected to be located in Hanoi and HCM City.

“The establishment of the Gold Exchange will help investors trade in gold methodically under the risk control of the State. The exchange is also a place where managing agencies can supervise, regulate and intervene in the market”, said NFMC Vice Chairman Le Xuan Nghia.

Under the project, the State Bank of Vietnam will establish a joint stock company to monitor and manage the operation of the exchange and build a technical infrastructure system to manage gold trading activities professionally and modernly. Investors will buy and sell gold under the form of certificates.

Many experts said this proposed project will help stabilise, manage and develop the gold market better as well as further promote the role of the capital source in economic development.

The Gold Exchange will ensure the equity in the market and avoid raising prices and creating fevers that cause damages to the economy, said Nguyen Manh, Head of BIDV’s Capital and Capital Business Department.

The State will supervise flows in the gold market more easily, he added.

According to Tran Quoc Quynh, a senior expert of the Vietnam Gold Business Association, in the context of increasing demand on gold investment, the establishment of the National Gold Exchange will create a safe and effective investment channel. – VNA

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