Investors set to enjoy market’s golden touch

April 24, 2007 | 18:12

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Vietnam’s gold market continues to glimmer in investors’ eyes with local players much in demand.Nguyen Thanh Truc, director general of Agribank Jewellery Company, one of the largest bullion traders in domestic market, said the company was in discussion with several foreign banks including Bipielle Suisse Bank, Standard Chartered Bank and Japanese Mitsui Bank.

More international investors are catching gold fever

“We want a strategic shareholder that can help Agribank Jewellery become an international bullion trader,” Truc said.
Agribank Jewellery, a state-owned company with chartered capital of VND111 billion ($6.93 million), will go public later this year. In 2006, the company’s turnover reached VND5,600 billion ($350 million). Southern Bank Jewellery Company last week signed a cooperation agreement with UOB Bullion & Futures Limited in which the Vietnamese side will sell a 51 per cent stake to the Singaporean company if approved by the State Bank of Vietnam.
According to Dinh Nho Bang, general secretary of Vietnam Gold Traders Association (VGTA), year-on-year increases in gold demand had made Vietnam an attractive market for international bullion traders. Since the early 1990s, Vietnam has been importing increasing amounts of gold up to 50 to 60 tonnes a year. VGTA estimates the market’s annual turnover is $3.5-$4 billion with Saigon Jewellery Company being responsible for $1 billion in trade.
“Vietnam’s gold market will become even more active if gold exports are legalised in the coming time,” said Truc.
At present, the State Bank is considering legalising gold exports, a move which could reap millions of dollars from international and domestic market price differences with the giant public stockpile of gold coming into play.

By Vu Giang

vir.com.vn

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