Asia Commercial Bank is setting up production facilities to start making its own gold bars and building an online trading platform as it awaits trading approval from the government.
The government’s decision to eliminate state monopoly on gold manufacturing is a “positive” move that would help improve the limited bullion supply, the bank said in a recent report to shareholders.
It is waiting for permits from the State Bank of Vietnam for buying and selling gold bars, and there are “optimistic signals,” it added.
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Gold bars seen in a store in HCMC. Photo by VnExpress/Quynh Tran |
ACB plans to launch its own gold brand next month. The lender used to be a bullion producer until 2012, when the government completely took over production of gold bars.
But from this month private businesses have again been allowed to produce gold bars if they meet certain capital and other criteria.
Eight banks and three jewelry companies (Phu Nhuan Jewelry, DOJI and Saigon Jewelry Company) meet the capital requirements.
Another lender, Techcombank, is also seeking to produce its own brand of gold bars, and is readying equipment, warehouses, personnel, and distribution channels for the purpose.
Last year Vietnam was the biggest buyer of gold in Southeast Asia at over 55.3 tons, ahead of Thailand (48.8 tons) and Indonesia (47.3 tons).
Gold prices have risen by 77% this year to VND148.9 million per tael of 37.5 grams or 1.2 ounces.
