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VGTA calls for legal framework for gold trading floors
The Vietnam Gold Trading Association (VGTA) has sent a dispatch to the State Bank of Vietnam asking it to promulgate a legal framework for the operation of gold trading floors.
In the dispatch, VGTA wrote that such a legal framework has become an urgent requirement, especially as a lot of companies not allowed to trade gold and foreign currencies still serve as intermediaries, arranging online gold trading deals for Vietnamese people and foreigners.
In fact, not only investors want the legal framework for gold trading floors, which can protect their interests, but gold trading floor organisers also expect the legal framework.
More and more gold trading floors have been set up by some gold trading companies and banks. Southern Bank plans to open its gold trading floor on September 5 at its headquarters on Ly Thuong Kiet street in HCM City.
The Southern Bank’s gold trading floor, like other floors, will open from Monday to Friday every week. The products to be put in transactions are 99.99 bar gold with SJC brand name and some other brand names.
Prior to that, on August 12, Viet A Bank put its gold trading floor located at 110 Nguyen Cong Tru in HCM City into operation. Though the floor is new, it has been attracting a lot of investors with 30,000 taels of gold traded every day.
Analysts say that gold trading floors can attract a big number of investors because gold investments can bring fat profit with small investment capital. Investors can join the trading floors if they pay a security of 7%. Though gold prices have fluctuated all the time in recent days, the trading volume is still very big, once hitting 50-550,000 taels/day.
Sacombank and East Asia Bank – PNJ are reportedly taking necessary steps to bring their gold trading floors into operation, slated for the fourth quarter of 2008.
Vietnam now has six gold trading floors, but there has been no legal framework for the floors. Huynh Trung Khanh, Senior Advisor to the World Gold Business Council in Vietnam, said that the State should set up the legal framework for gold trading floors soon. Khanh said that some illegal trading floors have become operational, and the lack of transparency of the floors will bring investors risks.
The representative of a bank said that the bank is considering setting up a gold trading floor, considering this a new potential source of income. However, the bank still cannot set up the floor until a clear legal framework for trading floors is set up.
VNN
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