Many gold exchange floors have remained operating in spite of the State Bank of Vietnam’s ban, which took effect March last year.
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| Gold and foreign currency investments still attract investors |
Hong Hoi Company has expanded dozens of gold trading branches all over, but mostly in Ho Chi Minh City. International Gold (IGI) has also developed its network nationwide.
Vietnam has also appeared on the “map” the international gold and foreign exchange markets, being listed on Easy-forex and Forex.com. The former even has pages in Vietnamese.
Experts said gold trading floors will attract investors for their small margin of just 1%-2%, particularly, at present; it is very challenging for them to invest in securities and real estate.
For example, with margin of just VND2 million (USD95.69) in a checking account, a customer can buy 5 taels of gold, worth VND183.3 million (USD8,755), at IGI. With a margin of VND20 million (USD956.93), a customer can purchase 83 taels of gold, equal to VND3 billion (USD143,540).
Most of gold trading floors operate as gold traders in order to escape the attention of regulatory agencies. Currently Vietnam has thousands of gold traders, including up to 4,000 in Hanoi and Ho Chi Minh City.
Bank for Investment and Development of Vietnam (BIDV) is seeking approval from the Government to establish a national gold exchange, along with the closure of more than 20 gold exchange floors which allow investors too much leverage.
Many economists support the bank’s proposal, saying that the closing of gold trading floors is essential to reduce risks to both investors and the country’s financial system.
